Labour Law Compliance Checklist: What India's Four Codes Require

If your compliance checklist was written before November 2025, it is already out of date. India's four labour codes consolidated 29 legacy laws into a single framework on November 21, 2025. Any checklist still referencing the Payment of Wages Act or the Factories Act is working off a framework that no longer governs how obligations are structured.

For a CHRO or CFO managing 1,000 or more employees across multiple states, this has serious consequences. Penalties are sharper, and the Inspector-cum-Facilitator model uses data analytics to flag delayed filings and missing registers across jurisdictions in real time.

With principal-employer liability extending to contract labour gaps and ESG reporting scrutinising workforce governance, compliance is now a board-level conversation.

The checklist below maps every major obligation under the four codes to what your team needs to action, organised by domain, so you can see exactly where your exposure sits.

Why Labour Law Compliance Is a Board-Level Priority in 2026

Since November 2025, the four labour codes have changed not just what enterprises are responsible for, but what happens when they fall short. The stakes now go well beyond HR operations.

The Cost of Non-Compliance Under the New Codes

A first offence under the New Code on Wages attracts fines up to ₹50,000, while a repeat offence within five years can mean imprisonment of up to three months, a fine up to ₹1 lakh, or both. 

The Industrial Relations Code prescribes fines up to ₹5 lakh for contravening strike or retrenchment provisions; these figures belong in board risk registers, not just HR operations reports.

Contract labour is where most enterprises are least prepared. When a contractor misses EPF or ESI deposits for workers at your premises, liability transfers to you as the principal employer. An indemnity clause does not change that statutory position.

From 29 Laws to 4 Codes: What Changed for Enterprises

Before getting into the checklist, it helps to know what each code actually covers:

Caption: India's four labour codes mapped to the legacy laws they replace and their enterprise-level impacts.

For detailed information, read New Labour Codes 2026. 

The Complete Labour Law Compliance Checklist for Indian Enterprises

This checklist maps to your obligations under the four labour codes and the state-specific rules that accompany them. Work through each domain, check it against where your compliance currently stands, and flag anything that needs attention in the remediation plan in the next section. 

1. Wage and Salary Structure Compliance

Minimum wage adherence draws the highest frequency of inspector scrutiny across all compliance domains, so it is the right place to start. Under the Code on Wages, 2019, every enterprise is responsible for the following:

• Minimum wage adherence: Track both central and state-specific minimum wage notifications. Revisions differ by skill category and zone, with industry-specific rates adding further variation. First-offence fines for non-compliance go up to ₹50,000.

• Basic pay floor: Basic wages must make up at least 50% of gross CTC. This affects every allowance structure and has cascading impacts on EPF, gratuity, and bonus calculations.

• Overtime at 2× the wage rate: The OSH Code mandates overtime compensation at twice the worker's ordinary rate of wages, without exception.

• Timely wage payment: Wages must be paid by the 7th of the following month for establishments with fewer than 1,000 workers, and by the 10th for establishments with 1,000 or more.

• Compliant payslips: Every employee must receive a payslip in the format prescribed under the Code on Wages before or at the time of wage disbursement.

• Bonus applicability: Statutory bonus obligations apply to employees drawing wages up to ₹21,000 per month, calculated on a basic pay of ₹7,000 or actual basic, whichever is higher.

ZingHR's payroll platform syncs minimum wage revisions across states in real time, removing the lag that causes underpayment exposure between revision and the next audit cycle.

2. Social Security, Benefits, and Welfare Compliance

The Code on Social Security consolidates nine legacy statutes. The two areas that demand the most immediate attention are EPF contribution timelines and gig worker coverage.

• EPF contributions: Employer and employee each contribute 12% on basic wages plus DA for all eligible establishments. Monthly EPFO ECR filings must be completed by the 15th of the following month. Delays attract penal interest at 12% per annum.

• ESI contributions: Applicable to establishments with 10 or more employees in notified areas where employee wages are within ₹21,000 per month (₹25,000 for persons with disability). The employer contributes 3.25% and the employee contributes 0.75%.

• Gratuity: Payable after five years of continuous service, or four years for fixed-term employees. With basic pay now structured at 50% of gross, gratuity liability increases materially. CFOs should model this into workforce cost projections.

• Maternity benefit: 26 weeks of paid leave for the first two children and 12 weeks for subsequent children. A crèche facility is mandatory for establishments with 50 or more employees.

• Gig and platform worker provision: The Social Security Code extends coverage to gig and platform workers for the first time. Enterprises engaging delivery or ride-hailing workers must register them on the government portal and make mandatory contributions to the Social Security Fund.

• Labour Welfare Fund (LWF): Contribution amounts and due dates vary by state. Maharashtra, Karnataka, Tamil Nadu, and Delhi each maintain distinct LWF regimes and filing schedules

3. Workplace Safety, Health, and Working Conditions

The OSH Code applies to every establishment with 10 or more workers, though obligations around working hours, overtime, and health checks vary by employment type and industry. For most establishments, working hours are capped at 8 per day, with overtime at twice the ordinary wage rate for anything beyond that.

• Annual health checks: Mandatory for workers in factories and hazardous process industries. The employer bears the full cost.

• Welfare amenities: Canteens are required for establishments with 100 or more workers, while crèches apply to those with 50 or more. First aid, adequate ventilation, drinking water, and proper lighting standards are mandatory across all covered establishments, though specific thresholds may vary as state notifications are finalised.

• Safety committees: Required in factories and hazardous establishments, with worker representatives included and meetings held at prescribed intervals.

• Factory-specific obligations: Manufacturing and Pharma enterprises operating factories carry additional obligations around hazardous processes, occupier licensing, and dangerous machinery documentation. IT/ITeS and BFSI establishments are subject to general health and safety provisions.

4. Industrial Relations and Employment Contracts

Standing Orders and fixed-term employment rules under the Industrial Relations Code, 2020, directly shape workforce governance in large enterprises. Grievance redressal mandates add another layer to manage.

• Standing Orders: Mandatory for establishments with 300 or more workers. These must be certified, prominently displayed, and cover worker classification, attendance rules, termination procedures, misconduct policies, and leave entitlements.

• Fixed-term employment: Fixed-term employees are entitled to statutory benefits equivalent to permanent workers, including gratuity and leave. Termination clauses must be explicitly stated in the contract.

• Layoff and retrenchment: Establishments with 300 or more workers require prior government approval for layoff, retrenchment, or closure. Retrenchment compensation is set at 15 days' average pay per completed year of service.

• Trade union recognition: A registered trade union with 51% or more membership has the right to be recognised as the sole negotiating union. Manufacturing and Healthcare enterprises must maintain negotiating council frameworks where multiple unions exist.

• Grievance redressal: Every establishment with 20 or more workers must constitute a Grievance Redressal Committee with equal representation from the employer and workers.

5. Anti-Discrimination, POSH, and Equal Opportunity

POSH and equal remuneration obligations carry penalties and reputational consequences significant enough that they regularly surface at the board level:

• Internal Committee (IC) constitution: Mandatory for every office or branch with 10 or more employees. The IC must be headed by a senior woman employee and include an external member from an NGO or legal background.

• Annual POSH training: All employees must receive awareness training, with new joiners covered during induction. Training records must be maintained as audit documentation.

• Annual POSH report: The IC must file an annual report with the employer and the District Officer detailing complaints received, complaints disposed, and any pending cases.

• Equal remuneration: The Code on Wages mandates equal pay for equal work regardless of gender. Enterprises must be prepared to demonstrate pay-parity data during inspections.

• Diversity reporting: Diversity metrics remain a voluntary disclosure under the labour codes, but M&A due diligence and ESG reporting increasingly require them. Proactive tracking is becoming a governance baseline, not a nice-to-have.

6. Registrations, Returns, and Record-Keeping

Principal employer registration and digital register mandates form the administrative backbone of every labour law compliance checklist. Accurate, current documentation across all entities and jurisdictions includes:

• Principal employer and contractor registration: Mandatory under the OSH Code for establishments engaging contract labour. Registration must be renewed before expiry and contractor licences verified before engagement.

• Shops & Establishments licence: State-wise registration with varying renewal cycles, working hour limits, and leave entitlements. Operating without a valid licence is a prosecutable offence in most states.

• Digital registers: State rules increasingly mandate electronic maintenance of all workforce registers, including attendance, wage records, overtime logs, and leave records. Physical formats carry audit liability in jurisdictions that have moved to digital-first enforcement.

• Professional Tax (PT): Registration and monthly or quarterly filings as per state rules. PT slabs and due dates vary significantly across Maharashtra, Karnataka, West Bengal, and Andhra Pradesh.

• Form I (Annual Return): Must be filed within the prescribed period after the close of each financial year, consolidating employment data, wage payment records, and statutory contribution summaries.

• Retention periods: Wage and attendance records must be preserved for a minimum of three years after the last entry. POSH records must be retained for the prescribed period after complaint resolution.

Enterprises managing these obligations across multiple states gain consistent control through a unified HCM platform. Missed renewal dates and register inconsistencies become visible before an inspection finds them, which is the only version of this that works in your favour.

Building a Statutory Compliance Calendar in 90 Days

The 90-day framework below gives enterprises a structured path to get compliant, whether starting from scratch or addressing what the new codes have surfaced.

1. Days 1–15: Law Mapping and Ownership

Map every registered entity, branch, and factory site to applicable labour code provisions, state Shops & Establishments rules, and local Professional Tax regimes, then identify expired registrations, pending filings, and missing digital registers. 

Once the mapping is complete, assign ownership explicitly. The compliance officer owns the timeline, HR owns POSH, Legal owns contracts and Standing Orders, while Payroll owns wage restructuring and statutory contribution accuracy.

2. Days 16–45: Remediation and System Configuration

Start by completing outstanding registrations across all active jurisdictions, prioritising principal employer licences and Shops & Establishments certifications first. Where POSH Internal Committee membership has lapsed, reconstitute immediately

Once registrations are in order, configure the HCM platform for tax-slab updates and minimum wage revision syncs. Payroll restructuring runs in parallel where basic pay remains below 50% of gross CTC, model the knock-on impact on EPF and gratuity with the CFO's office before executing any changes.

3. Days 46–90: Mock Audit and Go-Live

Run a full-scope internal audit across every entity, scoring documentation completeness, register accuracy, filing timeliness, and POSH compliance as separate categories. 

Alongside this, deliver organisation-wide POSH and workplace safety training, while setting up contractor compliance tracking so payments are held until EPF and ESI challans are verified.

Common Compliance Failures Across Multi-State Enterprises

These are the five most common places where compliance breaks down:

• Spreadsheet-dependent filing across states: Managing filings across 10 or more jurisdictions through spreadsheets is where version-control failures begin. A single missed Professional Tax date in one state quietly creates audit exposure across others.
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• Treating Shops and Establishments as one national obligation: Working hour limits, leave entitlements, and overtime caps vary by state. A single national policy template produces inconsistencies wherever local rules differ, and each entity needs its own configuration to stay clean.
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• Misassigning contractor compliance to the vendor: Principal-employer liability survives contractual indemnity clauses. When a contractor defaults on EPF or ESI contributions for workers at your premises, the enterprise absorbs the liability. Verifying challans before disbursement is the control that closes this gap.
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• Delayed payroll restructuring: Enterprises still carrying basic pay below 50% of gross CTC are accumulating a compliance backlog with every cycle since November 2025. Corrections after the fact carry both interest and penalty exposure.
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• No leadership visibility into compliance health: When compliance status lives in HR spreadsheets, it stays invisible to the board until an inspection surfaces it. A governance dashboard that puts filing status in front of CHROs and CFOs changes that picture entirely.

How ZingHR Approaches Labour Law Compliance

The compliance requirements under the four labour codes are substantial enough that the tooling question comes down to one thing: whether your current setup can keep pace with the volume of obligations across states, entities, and filing cycles. 

ZingHR's platform is built around five capabilities that directly address what this checklist surfaces.

Agentic Intelligence for Compliance

Predictive alerts fire ahead of every filing deadline, giving compliance teams enough lead time to act rather than reacting at the last minute. EPF, ESI, and statutory contributions compute automatically, while minimum wage revisions sync across all active states as soon as a change is notified.

 Your first payroll cycle after a revision is accurate from day one, not after a manual catch-up two cycles later. 

Unified HCM Platform

When payroll, attendance, digital registers, statutory payslips, and compliance modules all live in the same environment, version-control failures stop being a recurring problem. 

Your teams stop reconciling data across platforms and start trusting the numbers that come out. One source of truth means decisions get made faster and with a lot more confidence behind them. 

Board-Level Governance Dashboard

Compliance health scores and audit-readiness metrics belong in the boardroom, not buried three levels deep in HR ops reporting. When risk flags escalate in real time and governance data sits alongside workforce productivity and cost intelligence, your leadership can treat compliance as a strategic input rather than a periodic update. Given where penalty exposure is heading, that level of visibility is worth having now. 

Vendor Compliance Portal

Principal-employer liability is one of the most underestimated risks in enterprise payroll. Automated EPF and ESI upload verification runs before any disbursement clears, and payment locks tied to challan compliance mean you are no longer relying on manual checks per vendor. 

One configuration covers every contractor relationship simultaneously, so the protection scales as your workforce does. 

Multi-Entity, Multi-State Scalability

Each entity's state-specific rules run independently within a single platform, whether you operate across BFSI, Manufacturing, Pharma, Retail, or IT/ITeS. Teams configure entity-level compliance without those settings affecting each other, so growth into a new state or a restructured entity does not create a compliance backlog to sort out afterward. 

Your Compliance Checklist Needs a System Behind It

India's four labour codes mandate a compliance approach that is digital, automated, and visible at the leadership level. Enterprises relying on outdated checklists and manual processes increase their risk with every filing cycle that passes, while fragmented systems make that exposure harder to see and close.

CHROs and CFOs now own compliance as a governance metric that surfaces in employer brand assessments, M&A due diligence, and board risk reviews. Filing accuracy is no longer an HR operations concern; it is an organisational one.

ZingHR's Agentic Intelligence makes compliance a proactive, always-on capability. Periodic checklist exercises give way to continuous governance, where filing accuracy is maintained automatically across every state and entity.

Book a demo to see how ZingHR's agentic intelligence HCM platform engineers compliance readiness for your enterprise.