India's new labour codes: Employers face comprehensive compliance checklist

India's Ministry of Labour and Employment has issued a comprehensive compliance checklist for employers, detailing their obligations under the four new labor codes that came into effect on November 21, 2025 [4, 10, 17, 18]. These codes—the Code on Wages, 2019; the Code on Social Security, 2020; the Industrial Relations Code, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—replace 29 existing central labor laws with a unified structure [2, 4, 5, 7, 10, 16, 18, 19, 22]. The handbook, released as a 'Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere)', aims to provide clarity, tighten accountability, and minimize legal disputes during the transition from the old labor framework to the new [2, 4, 10, 17]. The checklist outlines nearly two dozen requirements categorized into foundational, monthly, annual, and event-based compliances [4, 11, 17]. **Foundational Compliances:** These seven basic requirements must be met from the inception of a business or upon hiring a new employee. They include registering the establishment, securing necessary licenses, maintaining records of attendance, wages, deductions, and overtime, defining wage periods, ensuring minimum workplace safety standards, enrolling eligible workers for social security schemes (like EPF and ESI), and forming work committees along with grievance redressal bodies [4, 11, 17, 22]. **Monthly Compliances:** Employers are required to ensure timely payment of wages, deposit social security contributions with the Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC), and provide wage slips to all workers [4, 11, 17, 22]. **Annual Compliances:** Annually, establishments must file a unified return, revise minimum wages if applicable, renew licenses, conduct safety audits, and carry out annual health check-ups for employees aged 40 years and above [4, 11, 22]. **Event-Based Compliances:** These obligations are triggered by specific situations. They include reporting workplace accidents or disease outbreaks within 24 to 72 hours, settling final dues within two working days and gratuity within 30 days, obtaining government approval for layoffs, retrenchment, or closure in units employing more than 300 workers (an increase from the previous threshold of 100), extending maternity benefits where applicable, and issuing lockout notices to workers and the relevant authority [4, 11, 17]. Key provisions within the codes include the definition of 'wages,' which now mandates that basic pay, dearness allowance, and retaining allowance must constitute at least 50% of total remuneration, potentially increasing statutory outgoings for employers [8, 12, 21]. The codes also provide explicit legal recognition for fixed-term employment (FTE), granting such employees parity in wages and benefits with permanent employees [5, 8, 13, 20]. Furthermore, the threshold for prior government permission for layoffs, retrenchment, and closures has been raised to 300 workers, offering greater operational flexibility to larger establishments [8, 13, 14, 15]. The implementation of these codes aims to simplify a complex labor law landscape, enhance worker welfare, and align India's labor ecosystem with evolving global standards [5, 7, 8, 18]. The Ministry's handbook is intended to serve as a practical guide, ensuring that employers can navigate the new compliance landscape effectively and reduce the scope for litigation [2, 4, 10, 17]. The four labor codes officially came into force on November 21, 2025, following their notification by the Ministry of Labour and Employment [6, 16, 18]. The new regime also brings broader social security coverage to gig workers and platform workers [2, 5, 14, 18, 19]. The codes rationalize and consolidate existing laws, aiming for a more transparent, efficient, and worker-friendly employment environment across India [5, 7, 8, 18, 19]. The official date of enforcement for the four labour codes was November 21, 2025 [6, 16, 18]. The article from The Times of India discussing the checklist was published on February 20, 2026 [4].

Frequently Asked Questions

Read Full Story on Quick Digest