Labour Compliance Guide

Reviewed 19 September 2026. The four Labour Codes came into force on 21 November 2025, and Central Rules were notified in May 2026. State rules are still being notified. Thresholds and procedures below reflect the Central position; confirm your state's status before acting. This guide is general information, not legal advice.

The four Codes at a glance

Twenty-nine central laws are now consolidated into four Codes.

Code on Wages, 2019Wages, minimum and floor wages, timely payment, bonus, equal remuneration.
Industrial Relations Code, 2020Standing orders, grievance redressal, layoffs and retrenchment, strikes and lockouts.
Code on Social Security, 2020EPF, ESIC, gratuity, maternity benefit, employee compensation, gig and platform workers.
Occupational Safety, Health and Working Conditions Code, 2020Registration, safety, health, welfare, working hours, contract labour and inter-state migrant workers.

Registrations and licences

Fewer registrations, but the deadlines still matter.

List every existing registration and licence with its issuing actFactories, contract labour, inter-state migrant workers, shops and establishments.
Confirm intimation to the registration authority where existing registrations carry over
Confirm EPF and ESIC registrations and coverage thresholds
Confirm your state's status for each CodeIt can differ by Code within the same state.

Wages and payment

The definition of wages changes payroll maths.

Test whether basic pay plus dearness allowance reaches at least half of total remunerationThe uniform definition of wages in the Codes drives PF, ESIC, gratuity and bonus calculations.
Confirm wages meet the applicable minimum or floor wage
Confirm wages are paid within the prescribed periodCheck the Central Rules and your state's rules for the due date.
Confirm annual bonus is paid on timeBonus is generally payable within eight months of the end of the accounting year.
Confirm no gender-based pay differences for equal work

Working hours and leave

Overtime is priced higher than many payrolls assume.

Check daily and weekly hour limits against actual schedulesThe Central OSH Rules trigger overtime beyond 8 hours a day for daily-wage workers and 48 hours a week for others.
Confirm overtime is paid at twice the wage rate
Check leave, weekly rest and holiday rules for your state
Review fixed-term employment termsThe Codes recognise fixed-term employment with the same benefits as permanent employees, including gratuity after one year of service.

Industrial relations

Thresholds decide which rules apply to you.

Check headcount against the standing orders thresholdThe Industrial Relations Code applies standing orders at 300 or more workers, subject to what appropriate governments notify.
Confirm a grievance redressal committee where requiredTypically for establishments with 20 or more workers.
Review layoff and retrenchment procedures and notice periods
Review notice requirements before strikes and lockouts

Safety, health and welfare

Applies to your own workers and contractors' workers on your site.

Confirm written appointment letters for all workers
Confirm safety, health and welfare provisions for each workplace
Confirm required health check-ups and safety committees where applicable
Confirm accident reporting procedures are known and used

Records and returns

What an inspector asks for first.

Maintain registers for wages, attendance, overtime and deductionsUse the formats prescribed in your state's rules where notified.
Keep proof of every statutory payment
Keep contractor licences and compliance packs on file
Run an internal audit at least once a year

The four Codes at a glance

Registrations and licences

Wages and payment

Working hours and leave

Industrial relations

Safety, health and welfare

Records and returns

Keep going

Contractor Compliance Checklist

Contract Labour Guide (CLRA to OSH Code)

Contractor Onboarding Checklist

Get a labour law compliance review

Labour Compliance Guide

The four Codes at a glance

Registrations and licences

Wages and payment

Working hours and leave

Social security

Industrial relations

Safety, health and welfare

Records and returns

Keep going

Contractor Compliance Checklist

Contract Labour Guide (CLRA to OSH Code)

Contractor Onboarding Checklist

Get a labour law compliance review