Labour Ministry Unveils Detailed Compliance Checklist for Employers
The Ministry of Labour and Employment has introduced a comprehensive compliance checklist for employers, designed to strengthen accountability and minimize legal conflicts. This initiative outlines nearly two dozen specific requirements under the four recently implemented labour codes: the Code on Wages, the Code on Social Security, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions Code.
Clarifying Employer Responsibilities During Transition
A senior government official explained to Economic Times that while many of these requirements existed under the previous labour framework, the newly prepared handbook aims to eliminate ambiguity and clearly define employer obligations during this transitional period. "It will act as a to-do list for establishments to ensure that no evasion on compliances happens for lack of clarity due to transition from the old labour laws to the new labour codes," the anonymous official stated.
The four labour codes officially came into effect on November 21, 2025, consolidating 29 central labour laws into a unified regulatory structure. This move represents a significant overhaul of India's labour legislation landscape.
Structured Compliance Framework
Under the new system, employers must complete seven foundational compliance requirements from the moment a business is established or a new worker is hired. Beyond these initial obligations, establishments are also mandated to fulfill four monthly and five annual compliance duties.
The framework further specifies six event-related compliances that become applicable in specific situations, including:
- Workplace accidents
- Disease outbreaks among employees
- Employee exits and terminations
- Maternity benefit cases
- Large-scale layoffs
- Lockouts or strikes within factory premises
Detailed Compliance Requirements
Officials have indicated that the ministry is in the final stages of finalizing central rules under the four codes. The government's objective is to ensure employers begin complying with statutory requirements early in the process, thereby reducing potential litigation in the future.
Basic obligations for employers include:
- Registering the establishment and securing all required licenses
- Maintaining comprehensive records on attendance, wages, deductions, and overtime
- Establishing fixed wage periods
- Ensuring minimum workplace safety standards
- Enrolling eligible workers in social security programs
- Forming work committees and grievance redressal bodies
Monthly, Annual, and Event-Based Requirements
Monthly compliance obligations include:
- Ensuring timely wage payments to all employees
- Depositing social security contributions with the Employees' Provident Fund Organisation and Employees' State Insurance Corporation
- Providing detailed wage slips to workers
Annual compliance requirements consist of:
- Filing a unified annual return
- Revising minimum wages where applicable
- Renewing necessary licenses and permits
- Conducting comprehensive safety audits
- Performing annual health check-ups for employees aged 40 years and above
Event-based compliance scenarios mandate:
- Reporting workplace accidents or disease occurrences within 24 to 72 hours
- Clearing final dues within two days and gratuity payments within 30 days of employee exit
- Obtaining government approval for layoffs, retrenchment, or closure in units employing more than 300 workers
- Extending maternity benefits where applicable
- Issuing lockout notices to both workers and relevant authorities
This comprehensive checklist represents the government's proactive approach to ensuring smooth implementation of the new labour codes while providing clear guidance to employers navigating the transition from the previous regulatory framework.
