New Labour Codes Compliance

Compliance requirements under New Labour Codes for different entity types in India

Manufacturing establishments are the most comprehensively covered under all four Labour Codes. All codes apply in full, with additional safety and health obligations under the OSH Code.

Fully Applies

Pay minimum wages as notified by Central/State govt
Wage payment by 7th (monthly) or as prescribed
Equal remuneration for same work regardless of gender
Maintain wage register, issue wage slips
Statutory bonus at 8.33% – 20% (10–20 employees threshold)

Fully Applies

Standing orders mandatory if 300+ workers
Prior permission for retrenchment/lay-off/closure (300+ workers)
Recognition of trade unions
Works Committee for 100+ workers
Grievance Redressal Committee mandatory
Notice period of 60 days for strikes (industry)

Fully Applies

EPF: 12% employer + 12% employee (20+ workers)
ESIC: 3.25% employer + 0.75% employee (10+ workers)
Gratuity after 5 years of continuous service
Maternity benefit: 26 weeks paid leave (10+ workers)
EDLI insurance under EPF scheme
Employer's liability for employee compensation

Fully Applies

Registration/licence mandatory for factories 10+ workers
Safety Officer if 500+ workers
Safety Committee if 250+ workers
Max 8 hrs/day, 48 hrs/week; OT at 2x rate
Annual health check-up for workers in hazardous processes
Canteen for 100+ workers; crèche for 50+ women workers
Annual leave with wages: 1 day per 20 days worked

Returns & Filings — Manufacturing

Annual Return (Wages & Bonus)
EPF – ECR (Electronic Challan-cum-Return)
ESIC Return / Half-yearly Return
ESIC Monthly Challan
Annual Return (Factories Act / OSH Code)
Accident Report
Contract Labour Returns (if applicable)
Maternity Benefit Register

Annual
Monthly
Half-yearly
Monthly
Annual
Event-based
Half-yearly
Annual

Labour Dept
EPFO
ESIC
ESIC
Factory Inspector
Inspector
Labour Dept
Labour Dept

Wages paid, bonus, no. of employees, working days
Contributions, UAN-wise breakup; due by 15th
Wages, contributions; May & Nov filing windows
Employer + employee contribution; due by 15th
Workers employed, accidents, overtime, leave availed
Fatal: within 4 hrs; serious: within 24 hrs
Details of contractors, contract workers deployed
Women employees, benefits availed

Trading establishments (shops, wholesale, retail) are primarily governed by the Code on Wages and Social Security Code. OSH Code applies mainly to warehouses with 10+ workers; IR Code provisions depend on worker count.

Fully Applies

Minimum wages as per scheduled employment / state schedule
Timely wage payment; wage slips mandatory
Overtime at 2x rate for hours beyond stipulated limit
Bonus: 8.33% – 20% (if 10+ employees)
Equal pay for equal work irrespective of gender

Threshold-based

Trade union recognition if applicable
Prior permission for retrenchment/lay-off/closure (300+ workers)
Recognition of trade unions
Works Committee for 100+ workers
Grievance Redressal Committee mandatory
Notice period of 60 days for strikes (industry)

Threshold-based

EPF: mandatory if 20+ employees on rolls
ESIC: mandatory if 10+ employees (shops/establishments)
Gratuity payable after 5 years' service (all employers)
Maternity benefit: 26 weeks (10+ workers)
Gig/platform worker provisions if applicable

Partial

Shops & establishments registration under State rules
Working hours: max 8/day, 48/week
Weekly rest day mandatory
Warehouses: OSH provisions if 10+ workers
Contract labour licence if deploying contract workers

Returns & Filings — Manufacturing

Annual Return (Wages & Bonus)
EPF – ECR
ESIC Monthly Challan
ESIC Half-yearly Return
Shop & Establishment Annual Return
Gratuity Nomination Forms

Annual
Monthly
Monthly
Half-yearly
Annual
Event-based

Labour Dept
EPFO
ESIC
ESIC
Municipality / Labour
Employer records

Wages, bonus, employees count
Contributions (if 20+ employees); due 15th
Contributions (if 10+ employees); due 15th
Employee details, wages, contributions
Employees, working hours, holidays
On joining; update on life events

Service industry entities (IT/ITES, consulting, BPO, hospitality, healthcare, etc.) are covered by all four codes, with OSH Code applying to specific categories. The IR Code’s provisions are critical for larger service firms with significant headcount.

Fully Applies

Minimum wages for scheduled service employment categories
Wages by 7th of following month (monthly paid)
Overtime compensation at 2x rate
Bonus mandatory (10+ employees, salary ceiling ₹21,000)
No deductions except as permitted (advance, PF, etc.)

Fully Applies

Fixed-term employment allowed; same benefits as permanent
Grievance Redressal Committee (20+ workers)
Standing orders if 300+ workers (draft within 6 months)
Notice of change in service conditions: 21 days
Retrenchment compensation: 15 days' wages per year

Fully Applies

EPF: 12%+12% for 20+ employee organisations
ESIC: 3.25%+0.75% for 10+ employees
Gratuity: 4.81% of basic (after 5 years' service)
Maternity: 26 weeks + creche, nursing breaks
Gig / platform worker social security (aggregators)
Employee Compensation (accidental coverage)

Partial

IT/ITES: max 12 hrs/day with govt notification; no mandatory inspector unless hazardous
Hospitals / labs: full OSH provisions; biohazard safety
Crèche: 50+ women workers
Flexi-hour schemes may be allowed under State rules
Contract labour licence if 20+ contract workers deployed

Returns & Filings — Manufacturing

Annual Return (unified / combined under new rules)
EPF – ECR
ESIC Monthly Challan + Half-yearly Return
Shop & Establishment Registration Return
Maternity Benefit Return
Contract Labour Return (Form VI-B)
Fixed-Term Employee records

Annual
Monthly
Monthly / Half-yearly
Annual
Annual
Half-yearly
Event-based

Labour Dept
EPFO
ESIC
Municipality
Labour Dept
Labour Dept
Internal + Labour

Employees, wages, overtime, bonus, leave
UAN-wise contributions; due by 15th
Wages, contributions, employee IP numbers
Employees, hours, address, category
Women employees, benefits given
Contractor details, contract workers
FTE agreements, termination records

Building contractors have a unique compliance framework — they are covered under the Contract Labour provisions, BOCW (Building & Other Construction Workers) provisions of the Social Security Code, and special OSH Code rules for construction sites.

Both the Principal Employer (project owner) and the Contractor share compliance obligations. Principal employers must register; contractors must obtain a licence.

Fully Applies

Minimum wages for construction workers as scheduled
Wages to be paid weekly or daily for contract workers
Contractor responsible; principal employer liable as fallback
Bonus if 10+ workers and profit threshold met
Wage register and muster roll at site mandatory

Threshold-based

Applicable if workers employed directly (not through contract)
Grievance Redressal Committee if 20+ workers
Standing orders: less relevant (temporary nature of work)
Retrenchment rules apply on project completion

Fully Applies

BOCW Cess: 1% of cost of construction (paid by employer)
Registration of building workers with BOCW Board
BOCW welfare benefits: housing, education, pension, medical
EPF: 12%+12% if 20+ workers on rolls
ESIC: 10+ workers threshold
Employee Compensation: mandatory for all workers
Gratuity payable after completion / continuous 5 years

Fully Applies

Project registration if cost ≥ ₹1 crore or 10+ workers
Safety Officer: 250+ construction workers
Safety Committee: 500+ workers at site
PPE, scaffolding, excavation safety rules
Welfare facilities: first aid, latrines, crèche at large sites
Max 8 hrs/day; OT at double rate
Contractor licence mandatory if 20+ contract workers

Returns & Filings — Manufacturing

BOCW Cess Return (Form I)
EPF – ECR
ESIC Challan + Half-yearly Return
Muster Roll & Wage Register (at site)
Annual Return (Wages & Contractor)
Accident Report (construction site)
Contract Labour Return (Form VI-B)
Employee Compensation Notice

Annual / Project
Monthly
Monthly / Half-yearly
Monthly
Annual
Event-based
Half-yearly
Event-based

BOCW Board / Govt
EPFO
ESIC
Labour Inspector
Labour Dept
OSH Inspector
Labour Dept
Commissioner

Cost of construction, cess @ 1%
Worker contributions; site code-based
Wages, contributions; separate project codes
Workers present, wages paid, advances
Contract workers, wages, welfare
Within 4 hrs (fatal) / 24 hrs (serious)
Sub-contractors, workers engaged
On accident resulting in injury/death

Entities with fewer than 10 workers enjoy significant exemptions, particularly from ESIC and EPF obligations. However, the Code on Wages applies universally regardless of size — no employer can escape minimum wage obligations.

EPF threshold

20 Workers

Below 10 → fully exempt from EPF

ESIC threshold

10 Workers

Below 10 → exempt from ESIC

Bonus threshold

10 Employees

Below 10 → bonus not mandatory

Standing Orders

300 Workers

Well above → not applicable

Fully Applies

Minimum wages — no exemption for small employers
Timely wage payment — mandatory even for 1 worker
Wage slips must be issued
Overtime at 2x rate for extra hours
Bonus: NOT mandatory below 10 employees
Equal remuneration rules apply

Not Applicable

Standing orders: not required (threshold 300)
Grievance Redressal Committee: not required (threshold 20)
Works Committee: not required (threshold 100)
Retrenchment / lay-off compensation rules do not trigger
Basic dispute resolution under labour courts still accessible

Partial

EPF: not applicable (threshold 20 workers)
EPF: not applicable (threshold 20 workers)
Gratuity: applicable if worker serves 5 continuous years
Maternity benefit: not mandatory below 10 workers
Employee Compensation: applicable for ALL employers regardless of size

Limited

Factory licence: only if 10+ workers (power-run) or 20+ (non-power)
Basic hygiene, ventilation, sanitation rules still apply
Working hours limit applies to all establishments
No mandatory safety officer, committee, or canteen
Weekly rest day must be provided

Returns & Filings — Entities with <10 Workers

Annual Return (Wages)
EPF – ECR
ESIC Challan / Return
Wage Register & Muster Roll
Gratuity nomination (Form F)
Employee Compensation notice
Shop & Establishment Registration

Annual
Monthly
Monthly
Monthly
Event-based
Event-based
Annual Renewal

Yes
No
No
Yes
Yes
Yes
Yes (State-Specific)

Simplified form; wages paid, no. of workers
Not required below 20 workers
Not required below 10 workers
Must be maintained and available for inspection
Collect on joining; update on life events
File on workplace accident causing injury/death
Even 1 employee triggers S&E registration in most states

Key caution: Even with fewer than 10 workers, if at any point the count reaches the threshold (10 for ESIC, 20 for EPF), registration becomes mandatory within 30 days and remains permanent even if the count later falls below the threshold.

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