My company is a private limited consulting company having less than 5 employees. what are the act applicable for my company?
From India, Chennai
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From India, Chennai
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For a private limited consulting company in India (Chennai) with less than 5 employees, the applicability of labor laws is limited, but there are still some key regulations to be aware of. Here’s an overview:
1. Shops and Establishments Act (Tamil Nadu Shops and Establishments Act, 1947)
Applicable: Yes, irrespective of the number of employees.
Requirements:
Registration with the local labor department.
Maintenance of employee records, working hours, leaves, and wages.
2. Contract Labour (Regulation and Abolition) Act, 1970
Not Applicable unless you hire contract workers and the headcount crosses 20 or more.
3. Employees’ Provident Fund (EPF) Act, 1952
Not Applicable for companies with less than 20 employees.
Voluntary registration is possible.
4. Employees' State Insurance (ESI) Act, 1948
Not Applicable unless the company has 10 or more employees and wages are within ESI limits.
5. Payment of Gratuity Act, 1972
Not Applicable unless the company has 10 or more employees.
6. Payment of Bonus Act, 1965
Not Applicable unless the company has 20 or more employees.
7. Income Tax & Professional Tax
Applicable based on salary payments.
Professional Tax (PT) is payable to the Chennai Corporation based on salary slabs.
8. Minimum Wages Act, 1948
Applicable, but mostly relevant if hiring blue-collar or low-wage workers.
9. Maternity Benefit Act, 1961
Not Applicable unless the company has 10 or more employees.
10. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Applicable, even with one female employee.
Actionable Step: If you have 10 or more employees, you must constitute an Internal Complaints Committee (ICC).
11. Equal Remuneration Act, 1976
Applicable to prevent gender-based pay discrimination.
12. Tax Deduction at Source (TDS)
If employees' salaries cross the taxable limit, TDS must be deducted and deposited.
13. Labour Welfare Fund (Tamil Nadu)
Applicable even for small companies; contributions depend on employee count.
Conclusion:
Your key compliance requirements include Shops and Establishments Act, Income Tax, Professional Tax, Equal Remuneration Act, and Prevention of Sexual Harassment Act.
Most labor laws apply only after 10 or more employees.
If you plan to scale, be prepared for EPF, ESI, and Gratuity compliance.
From India, Gurugram
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271. Shops and Establishments Act (Tamil Nadu Shops and Establishments Act, 1947)
Applicable: Yes, irrespective of the number of employees.
Requirements:
Registration with the local labor department.
Maintenance of employee records, working hours, leaves, and wages.
2. Contract Labour (Regulation and Abolition) Act, 1970
Not Applicable unless you hire contract workers and the headcount crosses 20 or more.
3. Employees’ Provident Fund (EPF) Act, 1952
Not Applicable for companies with less than 20 employees.
Voluntary registration is possible.
4. Employees' State Insurance (ESI) Act, 1948
Not Applicable unless the company has 10 or more employees and wages are within ESI limits.
5. Payment of Gratuity Act, 1972
Not Applicable unless the company has 10 or more employees.
6. Payment of Bonus Act, 1965
Not Applicable unless the company has 20 or more employees.
7. Income Tax & Professional Tax
Applicable based on salary payments.
Professional Tax (PT) is payable to the Chennai Corporation based on salary slabs.
8. Minimum Wages Act, 1948
Applicable, but mostly relevant if hiring blue-collar or low-wage workers.
9. Maternity Benefit Act, 1961
Not Applicable unless the company has 10 or more employees.
10. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
Applicable, even with one female employee.
Actionable Step: If you have 10 or more employees, you must constitute an Internal Complaints Committee (ICC).
11. Equal Remuneration Act, 1976
Applicable to prevent gender-based pay discrimination.
12. Tax Deduction at Source (TDS)
If employees' salaries cross the taxable limit, TDS must be deducted and deposited.
13. Labour Welfare Fund (Tamil Nadu)
Applicable even for small companies; contributions depend on employee count.
Conclusion:
Your key compliance requirements include Shops and Establishments Act, Income Tax, Professional Tax, Equal Remuneration Act, and Prevention of Sexual Harassment Act.
Most labor laws apply only after 10 or more employees.
If you plan to scale, be prepared for EPF, ESI, and Gratuity compliance.
From India, Gurugram
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