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For Employers · Ongoing Compliance

Labour Law Compliance Services

Audits, notices, inspections and the new Labour Codes — a standing labour-law function without the full-time hire.

Ongoing retainer · Reviewed by the EPF Buddy compliance team · Last updated 29 July 2026

Audit cadence

Quarterly / half-yearly compliance audits

Coverage

Wages, hours, registers, contractors, notices

Labour Codes

In force Nov 2025; state rules rolling out

Engagement

Retainer or per-matter

Beyond the filing calendar sits the harder layer: minimum wages revised twice yearly across states, overtime and leave rules, registers under a dozen Acts, contractor compliance, inspections and notices — and the four Labour Codes, in force since 21 November 2025 with state rules rolling out through 2026, reshaping all of it.

The Codes' new "wages" definition — basic pay must be at least 50% of total remuneration — quietly reshapes PF and gratuity math and cost structures. Employers who model this late will re-paper contracts in a hurry. Appointment letters are now mandatory; penalties scale roughly tenfold over the legacy Acts.

We act as your standing labour-law function: periodic compliance audits, inspection preparedness, notice and departmental representation, contractor and vendor compliance verification, and advisory when policies, restructuring or new states raise questions. The goal is simple: no surprise ever arrives from a labour department that we did not see first.

Key Takeaway

India's 29 central labour laws are consolidating into 4 Labour Codes — in force since November 2025, with state rules landing through 2026 — creating a dual-regime transition where legacy Acts and new Codes both demand attention. The 50%-wages rule, mandatory appointment letters and tenfold penalty scaling make a standing labour-law audit function the cheapest insurance an employer can buy.

Applicability

Does this apply to you?

Growing and multi-state employers

The obligation set expands with every state, contractor and hire type — this service keeps the map current through the Codes transition.

Anyone facing a notice or inspection

Departmental notices, inspector visits and audit findings are handled as engagements even outside a retainer.

The Cost of Not Doing This

What non-compliance actually costs.

The unknown-unknowns

Most labour-law exposure is invisible until an inspection, a complaint, or due diligence surfaces it. Audits exist to find it first — ranked by risk, with owners and dates.

The Codes transition

Until a state notifies rules under a code, legacy-Act procedures continue there — so multi-state employers face a dual-regime map. The 50%-wages rule alone reshapes CTC structures; penalties under the Codes scale into lakhs where legacy fines were hundreds.

How We Handle It

The process.

1

Baseline audit

Full-stack compliance review across applicable Acts and states — findings ranked by risk.

2

Remediation plan

Gaps closed in risk order, with clear owners and dates.

3

Standing cadence

Periodic re-audits, regulatory updates that affect you (not newsletters), and on-call advisory.

4

Representation

Notices, inspections and departmental proceedings handled end-to-end.

Documents we'll ask for

  • Registrations held and states of operation
  • HR policies, contracts and handbook
  • Contractor agreements
  • Any pending notices or audit findings

Exact requirements vary by state — we confirm them for yours when you contact us.

Key Terms

Words that decide outcomes.

The four Labour Codes
The Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and OSH & Working Conditions Code 2020 — consolidating 29 central labour laws, brought into force on 21 November 2025 with state rules rolling out through 2026.
The 50% wages rule
The Codes' new definition of "wages" requires basic pay to be at least 50% of total remuneration — recalibrating PF, gratuity and leave-encashment math for every salary structure built around low basic pay.
Inspector-cum-facilitator
The Codes' reformed inspection model: randomised, web-based inspections by officials mandated to facilitate compliance as well as enforce it — changing how employers prepare for and respond to visits.

Questions

Asked often.

It depends on headcount, states, industry and whether you use contract labour — the honest answer is a mapping exercise, not a list. The spine for most companies: S&E, PT and minimum wages from day one; ESIC, POSH IC and gratuity at 10; EPF and CLRA at 20 — overlaid now by the Labour Codes as state rules go live. Our baseline audit produces your specific map.
Yes — all four Codes were brought into force on 21 November 2025. But enforcement is phased: central rules were finalised in 2026 and states are notifying their own rules at different speeds, so legacy-Act procedures continue where state rules have not landed. That dual-regime period is exactly when employers need the map maintained professionally.
The Labour Codes define "wages" such that basic pay must be at least 50% of total remuneration. Salary structures built around low basic and high allowances will see PF, gratuity and leave-encashment costs rise when it bites — and contracts, CTC sheets and offer templates need re-papering. Modelling it early is the difference between a planned adjustment and a scramble.
Corporate and tax compliance are different disciplines from labour compliance — the Acts, departments, portals and failure modes barely overlap. We do the labour layer, working alongside your existing advisors, not instead of them.
Yes — notices, inspections and departmental proceedings are handled end-to-end, as standalone engagements or within a retainer. The first step is always the same: diagnose what the notice is actually about before responding, because a wrong reply hardens a file the way a wrong claim does.

Talk to us.

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