India is replacing 29 labour laws with four Codes, and we help you restructure pay, contracts and compliance before they turn mandatory.
India is replacing 29 labour laws with four Codes, and we help you restructure pay, contracts and compliance before they turn mandatory.
End-to-end transition from 29 labour laws to the four new Codes. CTC restructuring under the wages definition, standing order revision, fixed-term employment frameworks, single registration migration, and state-wise compliance monitoring. See our dedicated guide at /labour-codes-implementation.
Internal Committee constitution, POSH policy drafting, annual awareness training, complaint investigation with procedural rigour, external member services, annual return filing, and employer defence in POSH proceedings. See our dedicated guide at /posh-compliance.
The intersection of employment law and data protection that almost nobody covers. Employer as Data Fiduciary, legitimate use grounds for HR data under Section 7(1)(i), biometric data compliance, HR vendor Data Processing Agreements, and post-termination data retention. See our dedicated guide at /employee-data-dpdpa.
Employer-side advisory and litigation for termination disputes. Retrenchment compliance under Section 25F and 25N, misconduct dismissal with domestic inquiry, probation termination procedure, back wages defence, and reinstatement proceedings. See our dedicated guide at /wrongful-termination-employer-defence.
Drafting and review of employment agreements, appointment letters, non-compete clauses, confidentiality agreements, and company policies that comply with current law and anticipate the new Codes.
Retrenchment, voluntary retirement schemes, layoffs, and closure procedures. Compliance with notice requirements, compensation obligations, and government approval thresholds under the Industrial Relations Code.
Representation before labour courts, industrial tribunals, and High Courts. Strike management, lockout advisory, and collective bargaining support.
EPFO, ESIC, gratuity, and bonus compliance. Advisory on gig worker and platform worker classification under the Social Security Code.
How four wage laws became one code, and what changes for employers
The 50% rule, exclusions, and the add-back that reshapes salary structures
Universal minimum wage, floor wage, revision cycle, and overtime
When wages must be paid, how, and the limits on deductions
Bonus eligibility, the 8.33% to 20% range, and equal pay obligations
A phased plan to prepare your organisation for the four codes
Where labour reform meets employee data protection obligations
Internal Committee, policy, training, and annual returns
Lawful processing of HR and payroll data
Process, documentation, and litigation strategy for employers
Every engagement is read through three lenses at once, so the advice fits the technology, the commercial intent and the statute together.
Understanding the client’s workforce structure, operational model, and industry specific labour practices. A technology company and a manufacturing unit have fundamentally different employment compliance challenges.
Labour law compliance has direct P&L impact. Wage restructuring under the new codes will change take home pay, PF contributions, and gratuity calculations. We model these impacts before recommending changes.
Four Labour Codes, state rules (yet to be notified in many states), existing central and state labour laws, and evolving judicial interpretation. We track every notification and rule making exercise.
Twenty nine central labour laws. Hundreds of state level amendments and rules. Multiple registrations, returns, and compliance obligations for every establishment. This was India’s labour law framework until Parliament enacted four codes to consolidate the entire structure.
The consolidation is significant. The Code on Wages replaces four laws. The Industrial Relations Code replaces three. The Social Security Code replaces nine. The OSH Code replaces thirteen. Each code introduces fundamental changes to how businesses engage, manage, and compensate their workforce.
The Code on Wages redefines "wages" in a way that will restructure salary components across Indian industry. When basic wages must constitute at least 50% of total remuneration, every company with a high allowance structure will see increased PF, ESIC, gratuity, and bonus liabilities. The financial impact across a large workforce runs into crores annually.
The Industrial Relations Code raises the threshold for prior government approval for retrenchment, layoff, and closure from establishments with 100 workers to 300 workers. This gives mid sized companies significantly more flexibility in workforce planning. It also introduces fixed term employment as a recognized category, changing the dynamics of project based and seasonal hiring.
The Social Security Code expands coverage to gig workers and platform workers for the first time. Companies in the gig economy, food delivery, ride hailing, logistics, and similar sectors will need to assess classification of their workforce and potential social security obligations.
The statutes, rules and regulators that govern this practice. We track every amendment, circular and ruling so the position you take today still holds tomorrow.
The Code on Wages 2019 consolidates the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, and Equal Remuneration Act. Key provisions include a national floor wage, revised definition of wages, overtime at twice the normal rate, and simplified compliance for micro and small enterprises.
The Industrial Relations Code 2020 consolidates the Industrial Disputes Act, Trade Unions Act, and Industrial Employment (Standing Orders) Act. It introduces negotiating unions, raises retrenchment thresholds, recognizes fixed term employment, and establishes the Industrial Tribunal as the primary adjudicatory body.
The Social Security Code 2020 consolidates nine laws including EPF, ESIC, Gratuity, Maternity Benefit, and others. It creates a universal social security framework with provisions for unorganized workers, gig workers, and platform workers. The Social Security Fund will be funded by government contributions.
The OSH Code 2020 consolidates thirteen laws governing factory safety, mine safety, dock workers, building construction, and interstate migrant workers. It introduces a single registration, unified compliance framework, and expanded applicability thresholds.
Until state rules are notified, existing laws continue to apply. This creates a transitional period where businesses must maintain compliance with current laws while preparing for the new codes.
A structured advisory approach guides our labour code transition work. We begin with a comprehensive audit of current employment practices against both existing laws and the new codes.
The audit identifies gaps, risks, and restructuring opportunities. Wage structure analysis models the financial impact of the new wages definition. Employment contract review identifies clauses that need updating. Policy gap analysis maps current policies against code requirements.
We then develop a phased implementation plan. Immediate actions (policy updates, contract amendments), medium term actions (payroll restructuring, registration consolidation), and long term actions (compliance system redesign, training programmes).
Implementation support includes drafting revised employment contracts, updating standing orders, restructuring wage components, and training HR teams on new compliance obligations.
Start wage restructuring analysis now. The Code on Wages will increase employer costs for companies with high allowance structures. Modelling the impact before the codes are notified gives you time to adjust compensation strategies without disrupting employee relations.
Review all contractor and gig worker engagements for potential reclassification risk. The Social Security Code’s expanded coverage means that workers previously classified as independent contractors may attract social security obligations.
Update employment contracts to include fixed term employment provisions. The Industrial Relations Code recognizes fixed term employment with benefits comparable to permanent employees. This creates a legitimate alternative to indefinite employment for project based roles.
Ensure POSH compliance is current. Internal Committee constitution, annual training, and return filing are mandatory. Non compliance creates both legal liability and reputational risk.
Short, direct, on the record.
The four codes have been enacted by Parliament but state rules are still pending in most states. Implementation requires both central and state rule notification. Businesses should begin preparation now because the transition period once notified will be limited.
The code redefines "wages" to ensure that basic wages constitute at least 50% of total remuneration. This will increase PF, ESIC, gratuity, and bonus calculations for companies where allowances currently exceed 50% of total compensation. The financial impact can be significant and requires advance modelling.
We begin with an audit of current employment practices against both the existing laws and the new codes. We then model the financial impact of the new wages definition, redraft employment contracts and policies, restructure wage components, consolidate registrations, and train HR teams. The goal is to make the transition orderly rather than treating it as a last minute compliance scramble.
Key changes include raising the threshold for prior government approval for retrenchment and closure from 100 to 300 workers, introducing fixed term employment, recognizing negotiating unions, and establishing the Industrial Tribunal. These changes significantly affect workforce planning and restructuring strategies.
Companies should audit current registrations, review gig and platform worker engagements for potential coverage, model the financial impact of expanded social security obligations, and update payroll systems. Early preparation prevents compliance gaps when the code is notified.
Every employer with 10 or more employees must constitute an Internal Committee, adopt a POSH policy, conduct annual awareness programmes, and file annual returns. Non compliance attracts penalties and can lead to cancellation of business licenses.
Our labour code transition advisory represents our institutional thinking on the most significant employment law reform in India’s history. We have been advising companies on this transition since the codes were first introduced in Parliament.
Our labour practice combines regulatory expertise with commercial understanding. Wage restructuring, workforce planning, and compliance design require advisory that integrates legal requirements with business operations.
Pan India presence across 10 offices means we handle labour compliance across multiple states as a coordinated engagement. Different states, different rules, different factory inspectors. One firm that manages the complexity.
Every business decision you make operates inside a legal structure, and we make sure yours is built right before it is ever tested.
India has more regulatory frameworks than any comparable economy, and while compliance is never optional, it does not have to be overwhelming.
The strongest outcomes are built into the strategy at the start, not recovered from disputes later.