An employer requires a Provident Fund (PF) to provide their employees with a mandatory retirement savings plan contributing to their long-term financial security by building a retirement corpus which also helps attract and retain talent by demonstrating a commitment to employee welfare and benefits; additionally, it can improve the companys image as a responsible employer that values its workforce. A PF scheme shows employees that the company is invested in their future, which can boost morale and loyalty making it easier to retain good employees. The governing act for Provident Fund in India is called the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
Employees State Insurance provides a mandated social security system for the employees covering medical care, maternity benefits, sickness allowances and compensation for work-related injuries which can help improve employee satisfaction, reduce absenteeism due to illness and potentially attract better talent by demonstrating a commitment to employee well-being; all while being funded through contributions from both the employer and employee. Employees State Insurance Scheme id governed by the law Employees State Insurance Act (ESI Act) of 1948.
An employer needs to take shop and establishment registration to ensure legal compliance with labour laws, protecting both the business and its employees by guaranteeing adherence to regulations regarding working hours, wages, holidays and other employment terms. It is also a proof of legitimacy when applying for business loans or permits. This is governed by the Shop and Establishment Act 1960.
The Medium and Small scale industries and entrepreneurs registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments etc. MSMEs are eligible as priority sector for lending from banks.
