India’s labour law framework is undergoing its most significant reform in decades with the introduction of the 4 New Labour Codes. These codes aim to simplify compliance, enhance worker protection, and create a uniform labour ecosystem across the country.
For employers, HR professionals, and compliance managers, understanding and implementing New Labour Code compliance in India is no longer optional—it is essential.
At SANKHLA CORPORATE SERVICES PVT LTD, we assist organisations in navigating these changes smoothly and ensuring full statutory compliance.
What Are the 4 New Labour Codes?
The Government of India has consolidated 29 central labour laws into the following four codes:
Code on Wages, 2019
This code standardises wage definitions and ensures timely payment of wages across all sectors.
Key compliance changes:
- Basic wages must be at least 50% of CTC
- Uniform applicability of minimum wages
- Mandatory timely payment of salaries
- Equal remuneration for men and women
Industrial Relations Code, 2020
This code governs employer-employee relations, dispute resolution, and workforce restructuring.
Key compliance aspects:
- New rules for layoffs, retrenchment, and closure
- Recognition of trade unions
- Revised standing orders
- Faster dispute resolution mechanisms
Code on Social Security, 2020
This code expands social security coverage to include gig workers, platform workers, and unorganised sectors.
Key compliance areas:
- Enhanced PF, ESIC, and gratuity coverage
- Gratuity eligibility after 1 year of service
- Mandatory registration of eligible establishments
- Digital compliance and record maintenance
Occupational Safety, Health & Working Conditions (OSH) Code, 2020
This code focuses on employee safety, welfare, and working conditions.
Key compliance requirements:
- Maximum 48 working hours per week
- Provision for a 4-day workweek
- Overtime payable at twice the wage rate
- Enhanced health & safety obligations for employers
Why New Labour Code Compliance Is Critical for Employers
Non-compliance under the new labour codes can result in:
- Heavy penalties and fines
- Legal disputes and inspections
- Payroll and HR policy mismatches
- Operational disruptions
Early compliance ensures:
- Reduced legal risk
- Improved employee trust
- Inspection readiness
- Smooth HR and payroll operations
Key Compliance Challenges Faced by Employers
- Salary structure realignment
- Updating HR policies and appointment letters
- Register and record maintenance
- Multi-state compliance complexities
- Lack of clarity on state-wise implementation
This is where professional compliance support becomes crucial.
How SANKHLA CORPORATE SERVICES PVT LTD Can Help
At SANKHLA CORPORATE SERVICES PVT LTD, we provide end-to-end New Labour Code Compliance Services, including:
✔ Applicability assessment of all 4 Labour Codes
✔ Payroll and wage structure realignment
✔ Statutory register & record maintenance
✔ HR policy drafting & documentation support
✔ Labour law compliance audits
✔ Ongoing advisory & regulatory updates
Our experts ensure your organisation remains fully compliant, inspection-ready, and future-proof.
Prepare Today for Tomorrow’s Enforcement
Although states are implementing the labour codes in phases, enforcement is inevitable. Organisations that act early will gain a compliance advantage and avoid last-minute disruptions.
Proactive compliance is always cheaper than penalties.
Need Expert Support on New Labour Code Compliance?
Get in touch with SANKHLA CORPORATE SERVICES PVT LTD today for a free initial consultation.
Visit: https://sankhlaco.com
Your Trusted Partner for Labour Law & Compliance Solutions in India
