India’s labour landscape is undergoing a historic transformation with the introduction of the New Labour Codes—the Code on Wages, 2019, Industrial Relations Code, 2020, Occupational Safety, Health & Working Conditions (OSHW) Code, 2020, and the Code on Social Security, 2020. For companies, HR teams, compliance officers, and industry professionals, understanding and implementing labour law code compliance is now essential for risk-free operations.
What Are the New Labour Law Codes?
The Government of India has consolidated 29 Central Labour Laws into 4 comprehensive Labour Codes, aimed at simplifying compliance, improving ease of doing business, and ensuring better protection for the workforce.
The four labour law codes are:
- Code on Wages, 2019
- Code on Social Security, 2020
- Industrial Relations (IR) Code, 2020
- Occupational Safety, Health & Working Conditions (OSHW) Code, 2020
These codes introduce uniform definitions, digitised processes, simplified returns, and standardised employer obligations across industries.
Why Labour Law Code Compliance Matters for Businesses
Ensuring compliance under the Labour Codes is not just a statutory duty—it directly impacts an organisation’s:
- Legal risk & penalties
- Employee satisfaction and retention
- Payroll accuracy
- Workplace safety
- Dispute management
- Social security obligations
- Corporate reputation
Non-compliance can lead to heavy fines, prosecution, business disruptions, and loss of licenses.
Key Compliance Requirements Under the 4 Labour Codes
Below is a summary of major compliance obligations for employers:
Code on Wages, 2019 Compliance
Key Employer Responsibilities:
- Maintain minimum wages as per revised wage structure
- Follow uniform definition of ‘wages’ for PF, ESIC, Bonus & Gratuity
- Ensure timely payment of wages (within 2–7 days)
- Prepare mandated wage registers, annual returns, and digital records
- Comply with equal remuneration for all genders
Code on Social Security, 2020 Compliance
Key Compliance Areas:
- PF, ESIC, Maternity Benefit, Gratuity coverage
- Registration of employees under EPF & ESIC schemes
- Mandatory social security for gig & platform workers
- Online filing of returns and contributions
- Timely deposit of PF/ESI contributions
Industrial Relations (IR) Code, 2020 Compliance
Key Requirements:
- Standing Orders for establishments with 300+ workers
- Employer obligations for retrenchment, layoffs & closures
- 60-day notice for major changes in service conditions
- Rules for trade unions & dispute resolution
- Digital registers & returns under the IR Code
OSH Code (OSHW), 2020 Compliance
Key Responsibilities:
- Workplace safety and health standards
- Mandatory licenses for factories, establishments & contractors
- Welfare facilities: drinking water, washrooms, canteens, restrooms
- Working hours & overtime rules
- Annual health checks for workers
- Comprehensive safety audit and accident reporting
Benefits of Complying With Labour Law Codes
- Reduced legal and operational risks
- Improved employee morale and productivity
- Transparent HR & payroll practices
- Higher credibility for clients, investors, and authorities
- Smooth audits and inspections
- Better workplace safety and discipline
Challenges Companies Face in Labour Code Compliance
- Complex documentation
- Multiple state-specific rules
- Frequent regulatory notifications
- Digital filings and inspections
- Payroll restructuring due to new ‘wage’ definition
- Contractor & third-party workforce compliance gaps
Organisations often need expert support to streamline compliance under the new legal framework.
How Sankhla Corporate Services Helps You Stay Labour Code Compliant
(You can customise this section as per your services.)
We assist companies across India with:
- Complete Labour Codes Compliance Management
- Payroll & wage structuring as per new rules
- PF & ESIC compliance
- OSH Code compliance audits
- Registration & licensing under new codes
- Drafting Standing Orders
- Statutory registers & digital record management
- HR & compliance documentation
Conclusion
As India moves steadily towards implementing the new labour codes, timely and accurate labour law compliance is essential for every organisation. By understanding the new rules, updating internal processes, and ensuring proper documentation, businesses can operate smoothly and avoid legal challenges.
If your organisation needs help with Labour Code Compliance Services, feel free to reach out.
