Ministry of Labour & Employment
Government of India
Compliance Handbook for Employers
Under the Four Labour Codes
As on 25 September 2026
Ministry of Labour & Employment
Government of India
Under the Four Labour Codes
As on 25 September 2026
The Second National Commission on Labour (2002) had recommended, inter alia, that the existing labour laws should be broadly grouped into four or five Labour Codes on a functional basis. Accordingly, the Ministry of Labour and Employment, after extensive consultations with the stakeholders, rationalised, simplified and amalgamated the relevant provisions of the labour laws into four Codes. For employers, this means clearer rules, simpler procedures and reduced compliances.
This handbook has been prepared to make employers aware of the new provisions in a simplified manner. Each chapter provides an overview of compliances under each Code, with a focus on making compliance simpler, faster and easier. The handbook primarily covers provisions of the Codes and corresponding Rules where the Central Government alone is required to frame the Rules.
India's labour law framework had become complex over time, creating significant compliance burdens through multiple registrations, licences and returns. Evolving work patterns and new forms of employment underscored the need for a simpler and more coherent system, leading the Government of India to consolidate and rationalise 29 Central Labour Acts into four Labour Codes.
The four Labour Codes came into force on 21 November 2025 and the central rules corresponding to the Codes were notified on 8 May 2026.
Through enactment of the four Labour Codes, 1,228 sections were streamlined into 480, and 1,436 rules were rationalised to 359, while multiple returns (31) have been replaced with a single electronic return. The number of forms has reduced from 181 to 73, and registers to be maintained by employers have reduced from 84 to just 8. Provisions such as compounding of offences and improvement notices have been introduced for the first time, promoting a facilitative rather than punitive approach towards compliance.
| Item | Under erstwhile Acts | Under Labour Codes | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Wages | IR | OSH&WC | SS | Total | Wages | IR | OSH&WC | SS | Total | |
| Rules | 163 | 105 | 868 | 300 | 1,436 | 54 | 50 | 186 | 69 | 359 |
| Returns | 6 | 3 | 21 | 1 | 31 | Single (electronic) | ||||
| Forms | 20 | 37 | 55 | 69 | 181 | 6 | 18 | 20 | 28 | 72 |
| Registers | 24 | 3 | 56 | 1 | 84 | 2 | 0 | 5 | 1 | 8 |
| Registration | – | – | 6 | 2 | 8* | Single | ||||
| Licence | – | – | – | 4 | 4 | Single | ||||
| Compounding | – | Introduced for the first time | ||||||||
| Improvement notice | – | Introduced for the first time | ||||||||
* Factories, BoCW, Contract Labour, Plantation, Motor Transport, ISMW, ESI and EPF. IR: Industrial Relations; OSH&WC: Occupational Safety, Health and Working Conditions; SS: Social Security.
The Code on Wages, 2019 amalgamates four wages and payment-related labour laws. It aims to balance the rights of workers and facilitate ease of compliance for employers. The Code safeguards employees' interests through universal minimum wages, ensuring dignity and timely payment of wages. It supports women workers through equal pay and representation, fostering inclusive participation. By ensuring minimum wages to all employees, it drives productivity and labour welfare, strengthening economic growth, employment generation and workplace equity.
Laws subsumed: the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. Definitions of wages and employee are in Annexure 1.
Sec 3, 5, 6, 17
| Wage period | Pay by |
|---|---|
| Daily | At the end of the day |
| Weekly | On the last working day of the week |
| Fortnightly | Before the end of the second day after the end of the fortnight |
| Monthly | Before the expiry of the seventh day of the succeeding month |
Sec 14
If an employee whose minimum rate of wages has been fixed under the Code works beyond normal working hours, the employer must pay overtime for each extra hour at not less than twice the normal rate of wages.
Sec 50
The employer must maintain the following in the prescribed form:
Sec 50
Employers must display the following on the notice board in English, Hindi and the local language:
Sec 18
Employers must not make any deductions except those authorised under the Code. These include deductions for absence from duty; damage or loss; recovery of advances or loans; fines imposed after giving the employee an opportunity to be heard; and house accommodation or amenity or service, on acceptance.
Deductions shall not exceed 50% of wages during the wage period. If deductions exceed 50% of wages, the excess must be recovered in future wage periods, ensuring deductions in any month do not exceed 50% of wages.
Sec 26
The Industrial Relations Code, 2020 consolidates and rationalises the provisions relating to trade unions, conditions of employment in industrial establishments or undertakings, and the investigation and settlement of industrial disputes. It amalgamates three central legislations into a single Code.
Laws subsumed: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947. The definition of worker is in Annexure 2.
Sec 3, 4
Sec 28, 29, 30
Sec 14
Sec 40
If an employer intends to change any service condition listed in the Third Schedule (Annexure 3), the employer must give the prescribed notice to the affected workers. The change can take effect only after 21 days from the date of the notice.
Chapter IX, Sec 83
Chapter X
| 50 to 299 workers (Ch IX) | 300 or more workers (Ch X) | |
|---|---|---|
| Government role | Notice before retrenchment or closure | Prior permission for lay-off, retrenchment or closure |
| Retrenchment notice to worker | One month | Three months |
| Closure | Notice at least 60 days in advance | Permission sought at least 90 days in advance |
| Lay-off compensation | 50% of basic wages and dearness allowance | |
| Retrenchment compensation | 15 days' average pay per completed year of continuous service | |
| Re-Skilling Fund | 15 days' wages per retrenched worker | |
Sec 60, 62
Sec 72
If vacancies occur within one year of retrenchment, the employer must give preference to retrenched workers who are citizens of India.
The OSH&WC Code, 2020 consolidates and simplifies 13 Central labour laws into a single comprehensive legislation, reducing the multiplicity of compliances and bringing uniformity across industries, States and Union Territories. It improves transparency, enhances worker welfare and promotes ease of doing business through single registration, an all-India single licence, electronic filings and time-bound approvals. The Code ensures safe and healthy working conditions in factories, beedi and cigar, mines, docks, plantations, construction, motor transport and other establishments with 10 or more workers.
Laws subsumed: the Factories Act, 1948; the Plantations Labour Act, 1951; the Mines Act, 1952; the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; the Working Journalists (Fixation of Rates of Wages) Act, 1958; the Motor Transport Workers Act, 1961; the Beedi and Cigar Workers (Conditions of Employment) Act, 1966; the Contract Labour (Regulation and Abolition) Act, 1970; the Sales Promotion Employees (Conditions of Service) Act, 1976; the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; the Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981; the Dock Workers (Safety, Health and Welfare) Act, 1986; and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
Sec 3
Sec 5
Sec 6, 7, 10 to 12
Every employer shall comply, inter alia, with the following duties:
Sec 22
| Establishment | Workers |
|---|---|
| Building or other construction work | 250 or more |
| Mine | 100 or more |
| Factory | 500 or more |
| Factory carrying on a hazardous process | 250 or more |
Sec 23, 24; Rules 22 to 63
Employers are responsible for maintaining safe, healthy and suitable working conditions, including cleanliness and hygiene; proper ventilation and lighting; safe drinking water; separate toilet facilities for male, female and transgender workers; adequate space; and effective arrangements for waste disposal, as prescribed. (Section 23)
| Facility | Where required | Rule |
|---|---|---|
| Separate washing facilities, bathing places, locker rooms and changing rooms | Every establishment | 49 to 51 |
| Sitting arrangements for employees obliged to work standing | Every factory, mine and dock work | 52 |
| Canteen with dining hall, kitchen and store room, sited away from processing areas and latrines | 100 or more workers, including contract labour | 53 |
| First aid boxes with prescribed items | Every establishment | 54 |
| Ambulance room or dispensary with a qualified medical practitioner and nurse | Factory, mine and BoCW with more than 500 workers | 55 |
| Welfare Officer | Factories, mines and plantations with 250 or more workers | 57 |
| Crèche | Every establishment ordinarily employing more than 50 workers | 58 |
| Mock drills | Quarterly for all establishments; annually for plantations | 59 |
| Pre-employment and annual medical examinations, including contract labour | Mines | 60 |
| Free temporary accommodation at remote sites; cost borne by principal employer if work is contracted | Building or other construction work | 62 |
| Round-the-clock medical facilities, or during working hours as applicable, with prescribed equipment and qualified staff at every operating centre and halting station | Motor transport undertakings | 63 |
Sec 33
Sec 10, 11, 12
Sec 43, 44, 82
Sec 45 to 55
Sec 59, 61
Sec 18, 136
The Code on Social Security, 2020 subsumes nine labour laws. It covers EPFO, ESIC, gratuity, maternity benefit, employee's compensation, social security and cess for building and other construction workers, social security for unorganised, gig and platform workers, and social security records. The applicability criteria are in the First Schedule, reproduced at Annexure 5.
Laws subsumed: the Employee's Compensation Act, 1923; the Employees' State Insurance Act, 1948; the Employees' Provident Funds and Miscellaneous Provisions Act, 1952; the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959; the Maternity Benefit Act, 1961; the Payment of Gratuity Act, 1972; the Cine-Workers Welfare Fund Act, 1981; the Building and Other Construction Workers' Welfare Cess Act, 1996; and the Unorganised Workers' Social Security Act, 2008.
Sec 15, 16
First Schedule; Sec 2(33), 31, 32
| Benefit | What it covers |
|---|---|
| Sickness | Periodical payments to an insured person in case of sickness. |
| Maternity | Periodical payments to an insured woman for confinement, miscarriage, or sickness arising out of pregnancy, confinement, premature birth or miscarriage. An insured woman, and an insured person in respect of his wife, is also paid a medical bonus of ₹15,000 per case towards confinement expenses. (Rule 22(4)) |
| Disablement | Periodical payments to an insured person disabled by employment injury. |
| Dependants' | Periodical payments to dependants of an employee who died as a result of employment injury. |
| Medical | Medical treatment of the insured person and family where contributions are paid or payable, or where the insured person qualifies for sickness or maternity benefit. |
| Funeral expenses | ₹20,000 to the family member or person who actually incurs the funeral expenditure of a deceased insured person. (Rule 21) |
Sec 53, 55, 56; Rules 31, 33
Chapter VI; Rules 36, 37
Sec 74, 76, 81; Rule 57
| Outcome of injury | Compensation, whichever is more |
|---|---|
| Death | 50% of monthly wages × relevant factor, or the amount notified by the Central Government |
| Permanent total disablement | 60% of monthly wages × relevant factor, or the amount notified by the Central Government |
Sec 114; Rule 48(b)
Sec 2(6), 100, 103, 106; Rule 41
Sec 139
What needs to be done on day one, every month, every year, and when certain events happen. Tick items as you complete them; ticks are saved in this browser only.
Move the slider to your headcount. Each gold marker is a threshold in the Codes; the obligations it triggers appear below, grouped by Code.
Indicative only. The checker applies the thresholds stated in this handbook. Coverage of factories, mines, docks and other establishments also turns on the definitions in each Code and on State Rules, notifications and general or special orders of the appropriate Government. Items highlighted in gold are the ones triggered at the most recent threshold you crossed.
Every time limit stated in this handbook, in one place. Filter by Code.
| Obligation | Time limit | Reference |
|---|
Sec 2(y)
All remuneration, whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed, which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of employment or of work done in such employment, and includes:
but does not include:
Sec 2(k)
Any person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment are express or implied. It includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union.
Sec 2(zr)
Any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment are express or implied. It includes working journalists as defined in section 2(f) of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955, and sales promotion employees as defined in section 2(d) of the Sales Promotion Employees (Conditions of Service) Act, 1976. For any proceeding in relation to an industrial dispute, it includes a person dismissed, discharged, retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute. It does not include any person:
For the purposes of Chapter III (trade unions), "worker" means all persons employed in trade or industry, and includes the worker as defined in section 2(m) of the Unorganised Workers' Social Security Act, 2008.
Sec 40, 101(1)
Sec 12(1)
Sec 1(4), 1(8), 152(1)
| Ch. | Heading | Applicability |
|---|---|---|
| III | Employees' Provident Fund | Every establishment in which twenty or more employees are employed. |
| IV | Employees' State Insurance Corporation | Every establishment in which ten or more persons are employed, other than a seasonal factory. Also applies to an establishment carrying on a hazardous or life-threatening occupation notified by the Central Government, even with a single employee. An employer of a plantation may opt for Chapter IV by giving willingness to the Corporation, where its benefits are better than those the employer provides. Contributions are payable under section 29 from the date, notified by the Central Government, on which ESIC benefits are provided to the establishment's employees. |
| V | Gratuity | (a) Every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment in which ten or more employees are, or were, employed on any day of the preceding twelve months; and such shops or establishments as the appropriate Government may notify. |
| VI | Maternity Benefit | (a) Every factory, mine or plantation, including those belonging to Government; (b) every shop or establishment in which ten or more employees are, or were, employed on any day of the preceding twelve months; and such other shops or establishments as the appropriate Government may notify. |
| VII | Employee's Compensation | Subject to the Second Schedule, employers and employees to whom Chapter IV does not apply. |
| VIII | Social security and cess for building and other construction work | Every establishment falling under building and other construction work. |
| IX | Social security for unorganised workers | Unorganised sector, unorganised workers, gig workers and platform workers. |
| XIII | Employment information and monitoring | Career centres, vacancies, persons seeking services of career centres, and employers. |
Source. Compliance Handbook for Employers under the Four Labour Codes (as on 25.09.2026), Ministry of Labour & Employment, Government of India, New Delhi. The text has been lightly edited for on-screen reading. Gold PCS notes flag points where the source contains apparent errors or inconsistencies.