New Labour Codes Compliance

How It Works

1. 1

   Compliance gap assessment and Code applicability mapping

   Review all four Labour Codes and their draft rules against the organisation's current employment structure, payroll architecture, existing licences, and sector of operation to produce a prioritised gap analysis identifying the changes required, their financial impact, and their implementation sequence.

2. 2

   Wage structure audit and CTC redesign

   Analyse the current CTC structure against the wage definition in the Code on Wages 2019, identify components that will be reclassified as wages under the 50% cap rule, model the increased PF, ESI, gratuity, and overtime liability, and design a revised CTC architecture that is compliant, financially optimised, and acceptable to employees.

3. 3

   Employment contract and standing order revision

   Redraft offer letter templates, employment agreements, and standing orders (for applicable establishments) to incorporate fixed-term employment provisions, revised notice period standards, the Code-mandated appointment letter requirements, and updated disciplinary procedure language aligned with the Industrial Relations Code.

4. 4

   Payroll and HRMS system reconfiguration

   Work with the payroll software vendor to reconfigure the wage computation engine, update PF and ESI contribution calculations to the revised base, ensure accurate overtime computation under the new definition, and validate the revised payroll output against the modelled liability before live deployment.

5. 5

   Unified registration and licence rationalisation

   Map existing registrations (Shops and Establishments, Factories, Contract Labour, ESIC, EPFO) to the unified registration framework introduced by the Codes, plan the transition from fragmented to unified compliance filings, and engage with the relevant state labour department for early registration under state-notified rules where available.

6. 6

   Workforce communication and ongoing monitoring

   Design an internal communication plan to inform employees about changes to their CTC structure and statutory benefits, address concerns proactively, update the employee handbook and HR policies, and establish a monitoring mechanism to track state-specific rule notifications and update the compliance framework as new rules are published.