Written By Suma R V - King Stubb & Kasiva

The year of 2022 observed mass layoffs across all sectors in India and deeply affected the booming Startup and Tech sector that had to revisit the growth it made in terms of human resource hiring in the past few years in light of economic situations and new-age business models.

Startups must ensure compliance with the laws of the land as non-adherence to legal requirements damages the business and reputation of the employer. Hence, any restructuring & reorganization of the business or the workforce should comply with the legal requirements for startups

This article delves deep into certain key aspects of employee management for startups from the Indian labour and employment laws perspective.

Protection of Different Types of Workers in India

Understanding the categorization of the workforce in India is very essential as it determines the laws applicable and the compliance requirements.

Workmen: The settlement & investigation of industrial disputes are regulated by the Industrial Disputes Act, 1947 (“IDA”). This Act also defines the term ‘workman’ as a person hired/paid to engage in skilled or unskilled work, manual or technical work, and/or clerical work in an industry. The IDA also specifies the exclusion of persons engaged in managerial or supervisory roles. The “Workman” category’s wage threshold for coverage for employees working in a supervisory role, is INR 10,000 (Indian Rupees Ten Thousand) per month.

IDA...

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