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Labor Law Compliance: Ensuring a Smooth and Lawful Workplace

Navigating the intricate web of labour laws in India can feel daunting for any business, whether you’re a startup finding your feet or an established enterprise expanding your operations. Yet, understanding and adhering to these regulations isn’t just a legal obligation – it’s fundamental to ethical business practices, fostering positive employee relations, and safeguarding your organization from hefty penalties and reputational damage.

India’s labour law landscape is a dynamic mix of central and state legislation, built upon a foundation stretching back decades and currently undergoing a significant modernization with the introduction of four new Labour Codes. Staying compliant requires diligence, up-to-date knowledge, and proactive management.

This comprehensive guide is designed to be your roadmap. We’ll break down the complexities and provide actionable steps to help you master labour law compliance in India.

Here’s what we’ll cover:

1. Understanding the Indian Labour Law Framework
2. How to Ensure Compliant Wage Practices
3. How to Manage Working Hours, Overtime, Leave, and Rest Periods
4. How to Administer Employee Benefits and Social Security Correctly
5. How to Implement Robust Workplace Safety and Health Measures
6. How to Establish Compliant Hiring, Management, and Termination Processes
7. How to Prepare for Labour Law Enforcement and Audits
8. Understanding the Steep Costs of Non-Compliance (Penalties)
9. How to Navigate the New Labour Codes

Let’s dive in!

Step 1: Understand the Indian Labour Law Framework

Before tackling specifics, grasp the bigger picture:

• Constitutional Basis: The Constitution of India guarantees fundamental rights and directs policy towards social justice, equality (like equal pay for equal work – Article 39(d)), and prohibits discrimination (e.g., based on caste). These principles underpin all labour laws.
• Dual Authority (Concurrent List): Both the Central government and individual State governments can legislate on labour matters. This means you need to be aware of both national laws and the specific rules applicable in the state(s) where you operate. State laws often supplement or modify central laws, especially concerning areas like minimum wages or Shops and Establishments Act rules.
• Key Categories of Laws: Traditionally, laws cover distinct areas:
  • Wages & Compensation: Ensuring fair and timely payment.
  • Social Security & Benefits: Providing a safety net (PF, ESI, Gratuity, Maternity).
  • Working Conditions & Safety: Regulating hours, leave, and workplace safety.
  • Industrial Relations: Governing unions, disputes, and employment terms.
  • Specific Protections: Addressing child labour, migrant workers, sexual harassment, etc.
• The Shift to Labour Codes: India is consolidating ~29 existing central labour laws into four comprehensive codes:
  • Code on Wages, 2019: Consolidates laws on wages, bonus, equal remuneration.
  • Code on Social Security, 2020: Integrates laws on PF, ESI, gratuity, maternity benefits, etc., extending coverage.
  • Industrial Relations Code, 2020: Combines laws on trade unions, conditions of employment, and dispute resolution.
  • Occupational Safety, Health and Working Conditions (OSH) Code, 2020: Merges laws on workplace safety, health, and working conditions across various sectors.
  • Status: While enacted, the substantive provisions of these Codes are yet to be fully enforced nationwide (expected potentially in 2025, possibly phased). However, states are drafting rules, and businesses must prepare for this transition.

Actionable Takeaway: Recognize that compliance involves navigating both central and state laws and actively monitor the implementation status of the new Labour Codes.

Step 2: How to Ensure Compliant Wage Practices

Paying your employees correctly and on time is a cornerstone of compliance. Here’s how:

• Determine Applicable Minimum Wages:
  • National Floor Level Minimum Wage (NFLMW): A non-statutory baseline (approx. INR 178/day as of late 2024, but set to become statutory under the Code on Wages). States must set wages at or above this floor.
• • State-Specific Rates: States fix minimum wages for different ‘scheduled employments,’ skill levels (unskilled, semi-skilled, skilled, highly skilled), and geographical zones. These rates are usually revised periodically (often twice a year) based on the Consumer Price Index (CPI) via Variable Dearness Allowance (VDA).
• • How-To: Identify the specific state(s) you operate in. Consult the latest state government notifications for minimum wage rates applicable to your industry and employee categories. Ensure your offered wages (Basic + DA) meet or exceed these rates. See the example table below for variations.
  Example Minimum Wages (Monthly, INR – Subject to Change, Check Official Sources):
• (Note: This table is illustrative based on provided data points, always verify current official rates)

State	Effective Date	Unskilled	Semi-Skilled/Unskilled Supervisory	Skilled/Clerical	Highly Skilled
Delhi	Oct 1, 2023	17,494	19,279	21,215	NA
Karnataka	April 1, 2024	13,528 – 15,106	15,630 – 17,539	16,841 – 18,941	NA
Maharashtra	Jan 1, 2024	11,896 – 13,089	NA	NA	NA
Tamil Nadu	April 1, 2024	9,088	9,533	10,078	10,623
Uttar Pradesh	Oct 1, 2023	10,275	NA	12,661	NA
… (other states vary)

• Establish Compliant Payment Schedules:
  • Permissible Periods: Daily, weekly, fortnightly, or monthly.
  • Payment Deadlines:
    • Daily: End of shift.
    • Weekly: Last working day of the week.
    • Fortnightly: Within 2 days after the fortnight ends.
    • Monthly: Before the 7th day of the next month (some exceptions for large establishments).
    • Termination/Resignation: Within 2 working days of the relieving date.
  • Mode: Bank transfer/electronic modes are preferred and increasingly encouraged, though cash/cheque are permissible.
  • How-To: Choose a wage period and strictly adhere to the corresponding payment deadline. Ensure clear communication with employees about pay dates. Implement robust payroll processes.
• Handle Deductions Correctly:
  • Permissible Deductions: Only authorized deductions are allowed (fines, absence, damage/loss, accommodation provided, advances recovery, income tax, statutory contributions like PF/ESI, court orders).
  • Limit: Total deductions (excluding statutory ones like PF/ESI/Tax) cannot exceed 50% of the employee’s total wage in any wage period.
  • How-To: Maintain clear records of all deductions. Ensure deductions are legally permissible and within the 50% limit. Provide detailed payslips showing gross pay and all deductions.
• Understand the Code on Wages, 2019 Implications:
  • Uniform Wage Definition: Impacts calculation base for PF, gratuity, etc. Basic pay must be at least 50% of CTC (allowances capped at 50%).
  • Statutory Floor Wage: Central government will fix this, binding on states.
  • Gender Equality: Explicitly prohibits gender discrimination in wages and recruitment.
  • Bonus: Specifies eligibility (based on a notified wage ceiling) and calculation (min 8.33%, max 20%).
  • How-To: Review your salary structures to align with the 50% basic pay requirement. Prepare for adjustments in social security calculations. Ensure equal pay practices. Factor in bonus calculations as per the Code.

Actionable Takeaway: Implement rigorous payroll processes, stay updated on state-specific minimum wages, adhere strictly to payment timelines and deduction rules, and prepare for the structural changes mandated by the Code on Wages.

Step 3: How to Manage Working Hours, Overtime, Leave, and Rest Periods

Balancing productivity with employee well-being is crucial and legally mandated.

• Set Standard Working Hours:
  • Factories Act: Max 9 hours/day and 48 hours/week for factory workers.
  • OSH Code: Generally 8 hours/day, not exceeding 48 hours/week (specifics may be notified).
  • Shops & Establishments Acts (State-specific): Typically 8-9 hours/day and 48 hours/week, but varies by state (e.g., Delhi 9 hrs, Chennai 8 hrs).
  • Spread Over: Total time including rest intervals usually limited (e.g., 10.5 hours under Factories Act).
  • How-To: Determine which Act applies to your establishment (Factory, Shop/Establishment, or OSH Code once implemented). Define standard daily and weekly working hours within these limits in your employment contracts and company policy.
• Ensure Rest Intervals and Weekly Offs:
  • Rest Interval: At least 30 minutes after 5 hours of continuous work (Factories Act, OSH Code provisions for night shifts). Some state Shops Acts might mandate it earlier (e.g., after 4 hours in Chennai).
  • Weekly Off: At least one full day (24 consecutive hours) off per week (typically Sunday, but can be staggered).
  • How-To: Schedule mandatory rest breaks. Ensure every employee gets their weekly day off. If work is required on a rest day, ensure compensatory off and/or overtime pay as per law.
• Calculate and Pay Overtime Correctly:
  • Definition: Work performed beyond the standard daily or weekly hours (e.g., beyond 9 hrs/day or 48 hrs/week under Factories Act).
  • Rate: Double the employee’s ordinary rate of wages.
  • Limits: Some laws may cap overtime hours (e.g., Code on Wages suggests a limit like 125 hours per quarter).
  • How-To: Implement an accurate time-tracking system. Clearly define ‘ordinary rate of wages’ for calculation. Pay overtime dues correctly and promptly, usually with the regular salary cycle.
• Implement Compliant Leave Policies:
  • Annual Leave (Earned Leave):
    • Factories Act: 1 day for every 20 days worked (if worked 240 days in the previous year).
    • OSH Code: Entitlement rate to be notified (suggested 1 day per 11 days worked), eligibility after 180 days work in a year. Accumulation/encashment rules apply.
    • Shops & Establishments Acts: Vary by state (e.g., typically 12-15 days per year, eligibility criteria differ).
  • Sick Leave/Casual Leave: Often governed by State Shops & Establishments Acts or company policy. OSH Code includes provision for medical leave (half pay).
  • Maternity Leave: Governed by Maternity Benefit Act (covered under Social Security).
  • How-To: Understand the specific leave entitlements (Earned Leave, Sick Leave, Casual Leave, etc.) under the applicable central/state laws. Develop a clear leave policy document. Maintain accurate leave records for all employees. Ensure compliance with rules regarding leave application, approval, accumulation, and encashment.

Actionable Takeaway: Establish clear policies for working hours, breaks, weekly offs, overtime, and leave based on applicable laws (Factories Act, State Shops & Establishment Act, OSH Code). Maintain accurate records and ensure timely payments/granting of leave.

Step 4: How to Administer Employee Benefits and Social Security Correctly

Providing mandatory social security benefits is a critical compliance area.

• Employees’ Provident Fund (EPF): (EPF & MP Act, 1952 / Code on Social Security)
  • Applicability: Establishments with 20+ employees (Code on Social Security maintains this, may extend to others).
  • Eligibility: Employees earning up to INR 15,000/month (Basic + DA) at the time of joining are mandatory members. Existing members continue regardless of salary increase. Others can join voluntarily with employer consent.
  • Contribution: Employee: 12% of Basic + DA. Employer: 12% of Basic + DA (part goes to EPS) + 0.5% EDLI admin charges.
  • How-To: Register your establishment with the EPFO. Register eligible employees and get Universal Account Numbers (UAN). Deduct employee share and add employer share. Deposit contributions electronically via the EPFO portal by the 15th of the following month. File monthly electronic returns (ECR).
• Employees’ State Insurance (ESI): (ESI Act, 1948 / Code on Social Security)
  • Applicability: Non-seasonal factories/establishments with 10+ employees (may extend to hazardous occupations with 1 employee under the Code).
  • Eligibility: Employees earning up to INR 21,000/month gross salary (INR 25,000 for persons with disabilities).
  • Contribution: Employee: 0.75% of gross wages. Employer: 3.25% of gross wages.
  • Benefits: Medical, Sickness, Maternity, Disablement, Dependents’ benefits, Funeral expenses.
  • How-To: Register your establishment with ESIC. Register eligible employees. Deduct and deposit contributions online by the 15th of the following month. File half-yearly returns. Facilitate employees in availing benefits when needed.
• Payment of Gratuity: (Payment of Gratuity Act, 1972 / Code on Social Security)
  • Applicability: Establishments with 10+ employees.
  • Eligibility: Employees completing 5 years of continuous service (waiver for death/disablement). Code on Social Security proposes eligibility for fixed-term employees on a pro-rata basis without the 5-year rule.
  • Calculation: (Last Drawn Salary [Basic + DA] x 15 days x Years of Service) / 26.
  • Maximum: Capped at INR 20 Lakhs.
  • How-To: Calculate gratuity accurately upon employee’s exit (resignation, retirement, death, disablement after 5 years). Pay the amount within 30 days of it becoming payable. Consider options for funding this liability (e.g., insurance). Understand the nomination process.
• Maternity Benefit: (Maternity Benefit Act, 1961 / Code on Social Security)
  • Applicability: Governed primarily by the Maternity Benefit Act (subsumed under Code on Social Security). Applies to establishments covered under ESI or employing 10+ people.
  • Benefit: Paid leave for women employees (typically 26 weeks for the first two children). Other benefits include provisions for nursing breaks, protection against termination during pregnancy, etc.
  • How-To: Understand the eligibility criteria and duration of leave. Ensure timely payment of maternity benefits (average daily wage). Comply with all related provisions (work from home options, creche facilities if applicable >50 employees).
• Code on Social Security Implications: Aims to universalize social security, potentially covering gig/platform/unorganized workers through dedicated funds financed by government, aggregators, and beneficiaries. Keep track of rules defining contributions and benefits for these new categories.

Actionable Takeaway: Ensure timely registration, contribution deposit, and return filing for EPF and ESI. Accurately calculate and pay gratuity. Understand and provide maternity benefits. Monitor the implementation of the Code on Social Security for expanded coverage and potential new obligations.

Step 5: How to Implement Robust Workplace Safety and Health Measures

Creating a safe work environment is non-negotiable.

• Comply with the Factories Act, 1948 (if applicable):
  • Health: Ensure cleanliness, waste disposal, ventilation, dust/fume control, lighting, drinking water, latrines/urinals.
  • Safety: Machine guarding, safety protocols for moving machinery, hoists/lifts maintenance, floor/stair safety, pressure plant safety, eye protection, limits on weight lifting.
  • Hazardous Processes: Requires stricter measures – information disclosure, health record maintenance, specialized supervision, medical exams, emergency plans.
  • How-To: Conduct regular safety audits. Implement specific measures relevant to your factory operations. Maintain required health and safety records. Train workers on safety procedures. Appoint safety officers where required.
• Adhere to the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 (upon enforcement):
  • Broader Applicability: Extends beyond factories to cover more establishments (10+ workers), potentially including gig/platform workers for certain aspects.
  • Employer Duty: General duty to ensure a workplace free from hazards causing injury/occupational disease. Includes safe handling/storage/transport of substances.
  • Specific Standards: The Code includes schedules listing hazardous industries, health/safety standards, and notifiable diseases.
  • Registration: Electronic registration required for covered establishments.
  • Appointment Letters: Mandatory issuance of formal appointment letters.
  • How-To: Prepare for electronic registration. Review and update safety protocols to meet the broader duties under the OSH Code. Ensure formal appointment letters are issued. Stay updated on specific standards notified under the Code.
• Address State-Specific Rules: Some states might have additional safety requirements under their Shops & Establishments Acts or specific industry regulations.

Actionable Takeaway: Proactively identify and mitigate workplace hazards based on the Factories Act or the upcoming OSH Code. Implement comprehensive safety policies, provide training, maintain records, and ensure compliance with all health and sanitation requirements.

Step 6: How to Establish Compliant Hiring, Management, and Termination Processes

Managing the employee lifecycle legally is essential.

• Hiring Practices:
  • Employment Contracts: While not always federally mandated in writing, written contracts are highly recommended. Clearly define terms: job role, duties, CTC breakdown, working hours, leave, probation period, termination clauses, confidentiality, etc.
  • Types of Contracts: Understand the implications of permanent, fixed-term, temporary, casual, freelance contracts.
  • Standing Orders: If the Industrial Employment (Standing Orders) Act, 1946 applies (typically 100+ workmen, state variations exist), you need certified Standing Orders defining conditions of employment (classification, hours, leave, termination procedures, misconduct definitions). The Industrial Relations Code raises this threshold and uses the term “worker.”
  • Appointment Letters: Mandatory under the OSH Code and Code on Wages. Issue a formal letter upon hiring.
  • Non-Discrimination: Avoid discrimination based on gender, caste, religion, etc., during hiring (and employment).
  • How-To: Use clear, legally vetted written employment contracts for all hires. If applicable, draft and get Standing Orders certified. Issue formal appointment letters. Ensure recruitment practices are fair and non-discriminatory.
• Employee Management:
  • Maintain accurate employee records (personal details, attendance, leave, wages, performance).
  • Implement fair performance management systems.
  • Address grievances promptly and fairly.
  • Comply with POSH Act requirements for preventing sexual harassment.
• Termination Procedures: This is a highly sensitive area.
  • Grounds for Termination: Must be based on valid reasons – misconduct (theft, insubordination, fraud, habitual absence/lateness, violence, negligence – often defined in Standing Orders/Contracts), poor performance (after warnings/process), redundancy/retrenchment. Termination for discriminatory reasons is illegal.
  • Notice Period / Payment in Lieu:
    • Workmen (under IDA): If employed 1+ year, requires 30-90 days’ notice or pay in lieu for termination not due to misconduct (retrenchment). State Shops Acts often specify notice periods for non-workmen (e.g., 1 month). Contracts can specify longer periods.
    • Misconduct: Termination for proven misconduct (after a fair domestic inquiry) may not require notice or compensation, depending on the severity and company policy/standing orders.
  • Retrenchment Compensation (Workmen under IDA): 15 days’ average pay for each completed year of continuous service (or part thereof exceeding 6 months).
  • Government Approval (IDA): For industrial establishments (factories, mines, plantations) with 100+ workmen (threshold increased to 300 under the Industrial Relations Code), prior government approval is needed for lay-offs, retrenchment, or closure. Others may only require notification.
  • Full and Final Settlement: Must be paid within 2 working days of the relieving date. Includes unpaid salary, leave encashment, gratuity (if eligible), statutory bonus, retrenchment compensation (if applicable), etc.
  • How-To: Clearly define grounds for termination in contracts/Standing Orders. Follow due process meticulously, especially for misconduct (issue charge sheet, conduct fair inquiry). Adhere strictly to notice period requirements or provide payment in lieu. Calculate and pay retrenchment compensation correctly if applicable. Obtain government approval where required before retrenchment/closure. Ensure timely and accurate full and final settlement. Document everything carefully. Seek legal advice before initiating termination, especially retrenchment or dismissal for misconduct.

Actionable Takeaway: Implement clear, written contracts and policies. Ensure fair and non-discriminatory hiring and management practices. Follow legally mandated procedures precisely for termination, including notice, compensation, and approvals where necessary. Maintain thorough documentation throughout the employee lifecycle.

Step 7: How to Prepare for Labour Law Enforcement and Audits

Compliance is verified through inspections and audits.

• Enforcement Agencies: Ministry of Labour & Employment (Central), State Labour Departments, EPFO, ESIC, Factory Inspectorate, etc.
• Inspector’s Role: Conduct inspections (can be surprise visits), examine records, interview employees/employers, investigate complaints, issue notices/directions, initiate prosecution for non-compliance.
• Shram Suvidha Portal: Government portal aiming to streamline inspections, reporting, and compliance.
• How-To:
  • Maintain Meticulous Records: Keep all required registers, returns, employee data, wage slips, contribution challans, safety records, leave records, contract copies, etc., organized and readily accessible. Digital records are encouraged.
  • Know Your Obligations: Be aware of what records need to be maintained and returns filed under each applicable law.
  • Cooperate with Inspectors: Provide necessary documents and information during inspections. Answer queries honestly.
  • Conduct Internal Audits: Regularly perform internal checks to identify and rectify potential compliance gaps before an official inspection.
  • Respond Promptly: Address any notices or findings from inspectors within the stipulated time frame.

Actionable Takeaway: Implement a robust system for record-keeping. Understand the roles of different enforcement agencies. Cooperate fully during inspections and conduct regular internal audits to ensure ongoing compliance.

Step 8: Understanding the Steep Costs of Non-Compliance (Penalties)

Failure to comply can result in severe consequences.

• Financial Penalties: Fines can be substantial and vary significantly depending on the law, the nature of the violation, and state amendments. Repeated offenses often attract higher penalties.
• Imprisonment: Responsible individuals (directors, managers, occupiers) can face imprisonment for serious violations, especially concerning non-payment of statutory dues (like employee’s share of PF/ESI), safety breaches leading to accidents, or repeated offenses.
• Interest and Damages: Delayed payment of statutory dues (PF, ESI, Gratuity) attracts interest and potentially hefty damages (up to 100% of arrears for PF).
• Business Disruption: Inspections, investigations, and legal proceedings consume time and resources. Severe violations can lead to orders for temporary or permanent closure.
• Reputational Damage: Non-compliance can severely damage your brand image, affecting customer trust, investor confidence, and employee morale.
• Blacklisting: Companies found in serious breach may be barred from government contracts.

Example Penalties (Illustrative – Refer to specific Acts/Codes for current details):

Act/Code	Violation	Penalty (Fine – Approx./Indicative)	Penalty (Imprisonment – Approx./Indicative)
Minimum Wages Act, 1948	Paying less than minimum wage	Up to INR 500 (Higher in some states, e.g., 1 Lakh Kerala)	Up to 6 months
Factories Act, 1948	General contravention	Up to INR 2 Lakh	Up to 2 years
Factories Act, 1948	Violation leading to death	Min INR 25,000 + potential higher fines	Up to 3 years
EPF & MP Act, 1952	Failure to pay EE contribution (after deduction)	INR 10,000 + Damages (5-25%) + Interest	Min 1 year, up to 3 years
Payment of Gratuity Act, 1972	Non-payment of gratuity	Up to INR 10,000-20,000 + Interest	Min 3 months, up to 1 year
ESI Act, 1948	Failure to pay contribution	Fine + Interest	Up to 3 years (Min 1 yr for EE share non-deposit)
Code on Wages, 2019	Paying less than due amount	Up to INR 50,000 (1st); Up to 1 Lakh (repeat)	Up to 3 months (repeat offense)
Code on Social Security, 2020	Non-deposit of EE contribution (after deduction)	INR 1 Lakh (1st); INR 3 Lakh (subsequent)	1-3 years (1st); 2-5 years (subsequent)
Industrial Relations Code, 2020	Violation of lay-off/retrenchment (Sec needing approval)	INR 50,000 – INR 2 Lakh	NA
OSH Code, 2020	Negligence leading to death	Up to INR 5 Lakh	Up to 2 years
OSH Code, 2020	General violation (no specific penalty mentioned)	INR 2 Lakh – INR 3 Lakh	NA

Actionable Takeaway: Understand that penalties are severe and multi-faceted. Prioritize compliance not just to avoid fines and imprisonment, but also to protect your business’s reputation and operational continuity.

Step 9: How to Navigate the New Labour Codes

The new Codes represent a major shift. While full enforcement is awaited, preparation is key.

• Key Objectives: Simplification (fewer laws), modernization, expanded social security coverage, improved ease of doing business.
• Major Changes to Track:
  • Wages: Uniform definition, statutory floor wage, 50% basic pay rule, equal pay enforcement.
  • Social Security: Broader coverage (gig/platform workers), changes to gratuity eligibility (fixed-term), streamlined administration.
  • Industrial Relations: Increased threshold (300 workers) for government approval for lay-off/retrenchment/closure, changes in trade union recognition, dispute resolution mechanisms.
  • OSH: Wider applicability, emphasis on employer duty of care, mandatory appointment letters, focus on standards for health & safety.
• Implementation Status: Codes are enacted, but rules are being finalized by central and state governments. Nationwide enforcement likely in 2025, potentially phased. Many states have published draft rules.
• How-To:
  • Stay Informed: Regularly monitor updates from the Ministry of Labour and Employment and relevant State Labour Departments regarding the final rules and enforcement dates.
  • Analyze Impact: Assess how the new definitions (especially ‘wages’), thresholds, and expanded coverage will affect your specific operations, HR policies, payroll structure, and compliance processes.
  • Review Contracts & Policies: Prepare to update employment contracts, HR manuals, and policies to align with the new Code requirements once enforced.
  • Budget for Changes: Factor in potential cost implications (e.g., higher PF contributions due to wage definition change, potential costs for extending benefits).
  • Train HR/Management: Educate key personnel about the upcoming changes and their responsibilities under the new framework.
  • Seek Expert Advice: Consult with labour law experts to understand the nuances and ensure a smooth transition.

Actionable Takeaway: Proactively monitor the implementation of the new Labour Codes. Analyze their impact on your business and begin planning for necessary changes in policies, processes, and systems.

Conclusion:

Labour law compliance in India is complex and non-negotiable. It demands continuous attention, particularly during this period of significant legislative reform. By taking a structured, informed, and proactive approach, you can move beyond simply meeting legal requirements.

Robust compliance builds trust with your employees, enhances your reputation as an ethical employer, minimizes legal risks, and ultimately contributes to a more sustainable and productive business environment.

Your Compliance Checklist:

• Stay Updated: Regularly check central/state government notifications, especially regarding the New Labour Codes.
• Know Your Laws: Identify all applicable central and state laws (Factories Act, Shops Act, EPF, ESI, Gratuity, Minimum Wages, etc.).
• Wage Compliance: Verify and pay correct minimum wages; adhere strictly to payment schedules and deduction rules. Review structure for Code on Wages alignment.
• Working Time: Ensure compliance with daily/weekly hour limits, rest intervals, and weekly offs. Manage overtime correctly.
• Leave Management: Implement and manage leave policies (EL, SL, Maternity) as per law.
• Social Security: Ensure timely registration, contribution, and filing for EPF & ESI. Calculate and pay Gratuity accurately. Provide Maternity Benefits.
• Workplace Safety: Implement and monitor safety/health measures as per Factories Act / OSH Code. Maintain safety records.
• Hiring & Termination: Use written contracts/appointment letters. Follow Standing Orders if applicable. Adhere strictly to legal termination procedures (notice, compensation, approvals).
• Record Keeping: Maintain all required registers and employee records accurately and accessibly.
• Internal Audits: Conduct periodic self-audits to identify and fix compliance gaps.
• Expert Consultation: Engage with labour law experts for guidance on complex issues and the new Codes.
• Training: Train HR staff and managers on compliance requirements and company policies.

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