New Labour Codes: A Checklist of the 23 Compliances Every Boss Needs to Know

As India prepares for the implementation of the four new Labour Codes, the Ministry of Labour and Employment has streamlined the regulatory landscape by identifying nearly two dozen specific employer compliances.

This move aims to simplify the current web of overlapping regulations, consolidating 29 central labor laws into four comprehensive codes: Wages, Industrial Relations, Social Security, and Occupational Safety, Health, and Working Conditions (OSH).

New Labour Codes Streamlining the Compliance Landscape

The primary objective of the new framework is to enhance the “Ease of Doing Business” while ensuring robust social security for workers.

Under the new regime, employers will navigate approximately 23 key compliance requirements.

This represents a significant reduction from the hundreds of filings previously required.

These compliances include digitized registration, a single integrated license for contractors, and a unified annual return.

Central to this shift is the transition from multiple registers to a simplified digital format.

Employers will now be required to maintain a single electronic register for wages, attendance, and leave.

This digital format replaces the cumbersome manual record-keeping of the past.

Key Mandates for Employers

Among the 23 listed compliances, several stand out as critical for operational transition:

• Single Annual Return: Instead of filing separate reports for different laws, businesses will file one consolidated return online.
• Aadhaar-Based Registration: To ensure portability of benefits, Aadhaar has been made mandatory for employees to access social security funds.
• Gratuity and Full-and-Final Settlements: The codes mandate that wages and dues must be settled within two working days of an employee’s removal, dismissal, or resignation.
• Dynamic Wage Definition: Employers must ensure that allowances do not exceed 50% of the total salary, potentially increasing the provident fund (PF) outgo for many firms.

Impacts on the Workforce and Industry

Experts expect the “50% basic pay” rule to result in higher social security contributions.

This will decrease take-home pay in the short term but increase long-term retirement benefits.

The OSH Code introduces mandatory free health check-ups for employees above the age of 40. This shift in policy moves the focus toward preventive workplace safety.

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