IR Code union registration and recognition thresholds
India’s employment framework is governed by the four Labour Codes — the Code on Wages 2019, the Industrial Relations Code 2020, the Social Security Code 2020 and the Occupational Safety, Health and Working Conditions Code 2020 — all in force from 21 November 2025, together with the state-specific rules framed under each Code. Whether the matter concerns standing orders, retrenchment, wage structure, contract labour, or workplace safety, the applicable Code and state rules must be identified first. AMLEGALS advises employers and employees on the obligations under the Codes and the state rules framed thereunder.
Non-compliance carries monetary penalties, prosecution and, in some provisions, personal liability of directors and officers. The Code on Wages prescribes minimum-wage and payment obligations; the Industrial Relations Code governs standing orders, trade unions, retrenchment and closure; the Social Security Code consolidates provident fund, ESI, gratuity and maternity-benefit obligations; and the OSH Code governs workplace safety, working conditions and welfare. State-specific Shops and Establishments rules continue to apply in parallel. AMLEGALS maps the full compliance surface and acts in proceedings before labour courts, industrial tribunals and the appellate labour judiciary.
Identifying every labour and employment statute applicable to the establishment by state, industry and headcount, and building the compliance calendar.
Drafting employment agreements, appointment letters, separation terms, workplace policies and standing orders that align with the operative provisions.
Structuring salary, allowances, PF, ESI, gratuity and bonus to optimise cost while meeting the statutory floors under the Code on Wages and the applicable state rules.
Advising on domestic inquiries, show-cause procedures, retrenchment, closure and lay-off under the Industrial Relations Code 2020 and the state rules framed thereunder.
Representing employers and employees before labour courts, industrial tribunals, the EPFO appellate tribunal and the High Courts in writ and appeal.
Advising on obligations under the OSH Code 2020, the POSH Act 2013, internal-complaints-committee formation, and annual reporting.
The answer depends on the state, the industry, the headcount and the nature of the workforce (permanent, contract, gig). All four Labour Codes are in force from 21 November 2025. The Code on Wages, the Industrial Relations Code, the Social Security Code and the OSH Code replace the corresponding pre-existing statutes. State rules framed under each Code add jurisdiction-specific requirements. AMLEGALS maps the full statutory surface for the specific establishment.
Consequences range from monetary penalties under the Code on Wages (up to three months’ wages for non-payment) and prosecution under the Social Security Code (imprisonment up to one year for default in PF or ESI contributions) to personal liability of directors and officers. The POSH Act 2013 prescribes penalties for failure to constitute an Internal Complaints Committee.
Under the Industrial Relations Code 2020, retrenchment of a worker employed for over one year in an industrial establishment with 300 or more workers requires prior permission of the appropriate government. For establishments below the 300-worker threshold, the employer must give one month’s notice (or pay in lieu) and pay retrenchment compensation of fifteen days’ average pay for every completed year of continuous service. Non-workmen may be terminated per the terms of the employment contract, subject to any applicable standing orders.
Every employer with ten or more employees must constitute an Internal Complaints Committee, adopt a policy against sexual harassment, conduct awareness programmes, and file an annual report with the District Officer. Failure to comply is punishable with a fine of up to fifty thousand rupees, and repeated failure may lead to cancellation of business licences.
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