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Logistics & Warehousing

Your headcount doubles in October.
Your statutory position has to keep up.

Festive ramps and quarter-end surges. Pickers on piece rates and drivers under a different act entirely. Workers who cross state lines to reach a hub. E-commerce and retail clients who audit their 3PLs — usually in the quarter you have least capacity to answer.

Volume is the part your operation already handles. Jurisdiction and evidence are the parts that break.

yfy runs roster to payroll to statutory to client billing off one approved record, and holds the proof each of those obligations demands. It sits alongside your existing ERP, WMS or HRMS — there is nothing to rip out.

Finnovo Tech Functional Pvt Ltd · Hyderabad · ISO 9001:2015 · ISO 27001:2022 · ISO/IEC 27701:2019 · Billing starts at go-live, not at signature
What applies to you

Your warehouse compliance does not cover your fleet

Most logistics operators are compliant at the hub and exposed everywhere else. Pickers, drivers, migrant workers and platform workers are governed by four different rulebooks, and a single headcount figure evaluated against a single threshold gets at least two of them wrong.

Motor Transport Workers Act, 1961
Who it covers
Drivers, conductors, cleaners, station staff and other motor transport workers. Applies to undertakings employing 5 or more such workers.
Where operators get caught
Registration, a separate register set, hours and rest interval limits, medical fitness certificates, uniforms and first-aid provision. The fleet is usually managed by operations, and none of this reaches the HR system. It is the most common blind spot in the sector.
Inter-State Migrant Workmen Act, 1979
Who it covers
Inter-state migrant workmen. Applies from 5 workmen.
Where operators get caught
Registration, contractor licence, displacement allowance, journey allowance and return fare, a passbook per workman, and prescribed registers. Hub workforces are frequently recruited across state lines through contractors, and the ISMW obligations are missed almost as a rule.
Minimum Wages Act, 1948
Who it covers
Everyone, including workers paid by piece, by parcel or by trip.
Where operators get caught
Piece-rate earnings must not fall below the notified time-rate floor for that state, zone and skill category. A per-parcel rate that clears the floor in one state breaches it in another, and breaches in any state during a slow week. It is a per-worker, per-period shortfall that is invisible in every total you look at.
Factories Act, 1948 or state Shops & Establishment Act
Who it covers
Depends on what actually happens at the site.
Where operators get caught
A warehouse that repacks, relabels, kits or otherwise alters goods may be carrying out a "manufacturing process" and fall under the Factories Act rather than Shops & Establishment. Fulfilment centres do this routinely. Register the site under the wrong act and every downstream obligation inherits the error.
Contract Labour (Regulation & Abolition) Act, 1970
Who it covers
Contract workers engaged, per establishment.
Where operators get caught
Most hubs run substantially on contract labour, the base threshold is 20, and several states have amended it. Evaluated against a national figure instead of that state's deployments, the answer is wrong in both directions.
Code on Social Security, 2020 — gig and platform workers
Who it covers
Aggregators and the platform workers engaged through them.
Where operators get caught
If any part of your last mile runs on platform workers, this is a separate obligation with its own contribution basis — a percentage of turnover, subject to a cap expressed against payments made to those workers. It is new, and almost nobody has operationalised it.
Women workers on night shifts
Who it covers
Female workers between the prescribed night hours.
Where operators get caught
Permitted in most states only under specific exemption conditions — transport, minimum numbers on shift, consent, facilities. Peak-season night shifts in fulfilment centres run straight into this, state by state.

Seasonal is where ratchets matter. Statutory applicability generally does not reverse — once you cross a threshold you remain covered even after the peak passes. We evaluate against the higher of live and declared headcount and hold coverage once crossed, because the alternative is a system that quietly drops in January the obligations you acquired in October.

Statutory references reviewed: September 2026. Thresholds, notified rates and state amendments change by notification. Nothing here is legal advice.
The problem

Six failure modes, and five of them survive an audit of your totals

The statutory vulnerabilities that pass invoice matching and surface only during regulatory inspections or client audits.

Piece rate below the floor
A per-parcel or per-trip rate produces earnings that fall under the notified minimum wage in a slow week, or in a higher-wage zone, or for a worker classified at a skill level the rate was never designed for. It is a shortfall per worker per period, and no invoice total, payroll summary or client report shows it.
Ramp-down drops obligations you still hold
Headcount falls after the peak and a naive threshold engine un-applies statutes that legally remain in force. The system reports clean. You are not.
The fleet is invisible to HR
Drivers sit with operations. Motor Transport Workers registers, hours limits and medical fitness certificates live in a folder at a transport office, if they exist at all — and they are the first thing a labour inspector asks a transport undertaking for.
Migrant obligations never triggered
Contract workers recruited from another state are engaged, deployed and paid without displacement allowance, journey allowance, a passbook or an ISMW register — usually because nobody established that the ISMW Act applied.
Site registered under the wrong act
A fulfilment centre doing repacking and labelling registered under Shops & Establishment when the activity may constitute a manufacturing process. Every hours, overtime, welfare and register obligation downstream inherits that classification.
Client audits arrive with the peak
E-commerce and retail principals audit 3PL compliance in exactly the quarter your team has the least capacity. An incomplete pack is a defensible reason to hold payment on your largest billing month of the year.
Five of these six are invisible in a monthly total. That is not a reporting problem. It is what happens when attendance, payroll, statutory position and billing are four records instead of one.
How we are built

Approve the day once. Payroll, statutory, billing and the invoice all read it.

The single-record spine: attendance and trip logs feed downstream calculation engines without manual re-keying.

Output 1

Worker payroll

Wages, piece-rate earnings, overtime and lawful deductions for the person who actually worked that shift at that hub.

Output 2

Statutory liability

PF, ESI, PT, LWF, bonus and gratuity, computed from the same approved day against the right jurisdiction.

Output 3

Client billing

For 3PL and contract logistics: billed days or units cannot drift from paid days, because they are the same row.

Output 4

GST invoice

Your rate card applied per contract, invoice raised with the attendance evidence already attached.

Piece rate, floored. Earnings are computed as your rate card specifies and then tested against the notified minimum wage for that state, zone and skill category — per worker, per period. Where the piece-rate total falls short, the gap is named and the top-up is computed rather than absorbed. This is the single calculation that most distinguishes a compliant per-parcel operation from an exposed one.

The seasonality problem

Doubling headcount in six weeks is an onboarding problem. Halving it is a compliance problem.

Most systems handle the ramp up. Very few handle the ramp down correctly, because correct means keeping obligations you no longer visibly qualify for.

Bulk onboarding, entered once

Joining records, statutory enrolment data, identifiers and bank details captured once and reused everywhere downstream. For a hub taking on 800 people in three weeks, re-keying is where enrolment errors are born.

Deployment with jurisdiction attached

Assign workers to hubs in batches, with each hub's state, zone, skill category and applicable minimum wage floor attached automatically — not selected by hand at the point of hire.

Applicability that ratchets

Coverage is evaluated against the higher of live and declared headcount and held once crossed. Crossing a threshold in October does not un-cross in January, and the system says so.

Seasonal eligibility handled properly

Statutory bonus eligibility turns on days worked in the accounting year rather than on being on rolls today. Gratuity for seasonal establishments follows its own statutory basis. Both are computed rather than assumed.

Continuous service is held against the worker rather than against a single deployment, so someone who works three consecutive peaks has one service history — which is what makes bonus continuity and gratuity eligibility correct instead of approximate.
What you hold

Four rulebooks means four register sets, in one evidence vault

An inspection does not ask for your dashboard. It asks for a register, for a named person, on a named date.

WorkforceWhat we hold
Warehouse and hub workersMuster, wage register, wage slips, overtime register, deductions and fines registers under the applicable establishment act.
Drivers and transport staffMotor Transport Workers register set, hours and rest records, and medical fitness certificate status with expiry.
Inter-state migrant workmenISMW registers, passbook records, displacement and journey allowance computation and payment evidence.
Contract workersThe CLRA register set per establishment (Forms XII to XXV under Central Rules; state variations mapped), plus contractor licences and principal employer Form V.
All of the aboveChallans and acknowledged returns held against the correct wage month and the correct establishment code.

Governance attaches at upload, not in a later compliance pass. Confidentiality tier, retention floor and legal hold are set when the document arrives, and every mutation writes to an append-only, hash-chained ledger that deliberately holds no personal data of its own — so it can be retained and produced for an audit without becoming a liability itself.

The commercial edge

Your client's audit will land in your busiest month. Answer it with a download.

E-commerce and retail principals are auditing 3PL and manpower compliance harder every year, because under CLRA §21, EPF §8A and ESI §40 their exposure is real and their boards know it. For a contract logistics operator, being the one that can evidence its position on demand is a commercial position, not an administrative one.

A generated pack, per client, per month

Wage registers and slips for workers at their sites, establishment-filtered PF ECR and ESI filings, challans and receipts against the right wage month, attendance per worker per day, and the CLRA register set for their establishment. Produced from records the month already created.

A scoped client window

Give a principal a read-only view of their own deployment — workers, attendance, statutory position, their contract only. The boundary is enforced at the platform level, not set as a configuration option someone could get wrong.

Peak-proof generation

The pack takes the same time to produce in October as in June, because it is generated automatically rather than compiled by hand under pressure.

How this is set up

Logistics sits on both sides of this. Which are you?

Getting this wrong wastes the first meeting, so we ask rather than assume. Select your operational model below:

Principal Employer

We engage contract labour at our own hubs & fleets

Manpower comes through contractors; the exposure under CLRA §21, EPF §8A and ESI §40 lands on you. We verify each contractor's bill against your gate and biometric records before AP releases payment.

Supplier / Manpower Agency

We supply manpower into client warehouses

You are the employer of record and your compliance proof is a commercial asset that unlocks held payments. Roster to payroll to statutory to client billing off one approved record.

Both / Integrated 3PL

Both: We run hubs on contract labour & supply client sites

You operate your own hubs with contractors and supply manpower into client fulfilment centers. A single tenant configuration field runs both lenses in parallel with zero custom code.

Request Dual Assessment
Covers both sides of your 3PL operation
Most 3PLs and contract logistics operators above a few thousand workers run both lenses.
Sub-sector architecture

How statutory shape varies across logistics sectors

Different logistics business models face distinct statutory obligations under Indian labour law.

E-commerce fulfilment centres

Extreme seasonality and high exposure to Factories Act classification questions due to repacking, labelling and kitting. Peak-season night shifts run into women worker exemption rules state by state. Highest client audit pressure.

3PL and contract logistics

Multi-client sites with diverging rate cards. The client compliance pack is a live commercial requirement to unlock held payments. Frequently both lenses at once — own contract labour at the hub, manpower supplied to clients.

Transport and fleet operators

Motor Transport Workers Act dominates and is usually the largest unaddressed gap. Driving hours, rest intervals, and medical fitness certificates are the core exposures, almost never housed in standard HR systems.

Last mile and delivery

Per-trip and per-parcel pay models where the minimum wage floor test is the central control. Where models engage gig riders, Code on Social Security aggregator provisions apply.

Cold chain and specialised warehousing

Higher skill categories, technical plant staff on continuous shift patterns, temperature hazard allowances, and distinct establishment classifications.

Frequently Asked Questions

Commercial and operational answers

Honest limits: What we do not do for logistics

We state our operational boundaries clearly so expectations align before you sign an agreement.

  • We are not a WMS, TMS or fleet telematics system. Inventory, slotting, route planning, vehicle tracking, fuel and maintenance are not ours. We run the workforce, its statutory position and the billing.
  • Motor Transport Workers support means records, not rostering against vehicles. Registers, hours records, medical fitness expiry and statutory evidence, yes. Matching driver duty to vehicle availability, no.
  • We do not run gig platform dispatch. If your last mile is platform-based we handle the statutory and payment position, not the assignment engine.
  • We do not classify your sites for you. Whether a warehouse activity constitutes a manufacturing process is a question for your labour law adviser. We hold your registration and apply it consistently, and flag apparent inconsistencies.
  • We are not a sourcing product. Onboarding through to deployment, payroll, statutory and billing, yes. Finding several hundred pickers in three weeks is your channel's job.
  • India only. Deliberately. The depth in state minimum wage, professional tax, labour welfare fund, CLRA and ISMW exists because we did not spread across jurisdictions.
  • We have three ISO certifications and few public references. We would rather prove the engine on one peak month of your own data than show you someone else's logo.

Test it on a peak month and a normal one

Send us two months you have already paid: one peak, one ordinary. We re-compute both on our engine and report every variance — writing nothing to anything live. The peak month is where piece-rate floors, ramp-time enrolment, migrant obligations and billed-versus-paid drift all show up at once.

Piece-rate earnings tested against notified minimum wage floor per hub
Statutory applicability across the ramp and post-ramp retention
Motor Transport Workers and ISMW obligations and record audit
Billed against paid days or units per client site for supplied manpower
Contractor bill variance against gate/biometric records for contract labour
Bonus and gratuity provisioning position across seasonal service
Two to three weeks · under NDA · read-only. Nothing installed, nothing migrated, no workers moved.
Request the peak-month assessment Model your exposure first →
Statutory references reviewed: September 2026 · Finnovo Tech Functional Pvt Ltd · Madhapur, Hyderabad