HR Compliance for Indian Startups: Labour Laws That Can Shut You Down — VELTRO

Labour law violations don’t announce themselves. They accumulate in missed registrations, informal policies, and undocumented practices — until an inspection makes them impossible to ignore. VELTRO ensures full compliance.

Key Labour Laws Every Indian Business Must Follow

• Shops & Establishments Act: State registration mandatory for every commercial establishment
• POSH Act 2013: ICC mandatory for 10+ employees — ₹50,000+ fine per incident of non-compliance
• Maternity Benefit Act: 26 weeks paid maternity leave — non-compliance is a criminal offence
• Gratuity Act: Mandatory for 10+ employees, payable after 5 years — must be provisioned for
• Contract Labour Act: Principal employer registration required for businesses using contractors

Case: Series A Saved in 45 Days

60-person IT company: investor flagged missing POSH compliance, no ICC, no Shops Act registration. Blocked for 3 months. VELTRO completed full overhaul in 45 days. Round closed on schedule.

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