- Pay the minimum wage notified by the appropriate government to every employee. No exceptions.
- No gender discrimination in wages for the same or similar work, and no discrimination in recruitment on the basis of sex.
- Fix a wage period — daily, weekly, fortnightly, or monthly. Monthly wages must be paid before the 7th of the following month.
- On exit by resignation, dismissal, or termination — pay all dues within two working days. New
Compliance WatchThe two-working-day F&F window is the most operationally disruptive change. Most payroll systems run on monthly cycles. This needs a process fix, not just a policy update.
- Comply with daily and weekly working hour limits prescribed under the Code and applicable rules.
- Pay overtime for every extra hour beyond normal working hours at a minimum rate of twice the normal wage.
- Maintain: attendance cum muster roll, wage register, overtime register, register of fines and deductions. Physical or electronic. Preserve for 5 years.
- Issue wage slips to all employees on or before payment of wages.
- Display on notice board in English, Hindi and local language: minimum wages, working hours, wage period, payment date, and name of Inspector-cum-Facilitator.
- Pay annual bonus to every eligible employee who has worked at least 30 days in the accounting year.
- Minimum rate: 8.33% of wages. Maximum: 20%.
- Eligibility applies to employees drawing wages up to the limit set by the appropriate government.
- Works Committee may be required for establishments with 100+ workers — if directed by the appropriate government. Equal employer-worker representation.
- Grievance Redressal Committee (GRC) mandatory at 20+ workers. Note Equal representation, max 10 members. Women representation proportionate to workforce share.
- GRC must complete proceedings within 30 days of receiving an application.
Compliance WatchGRC at 20+ workers is the most missed obligation — it applies to most mid-size workplaces, not just large establishments. Constitute it, document it, and ensure women's representation is met.
- Single union with prescribed criteria: recognise as sole negotiating union.
- Multiple unions: union with 51%+ worker support is the negotiating union.
- No union at 51%: constitute a Negotiating Council from unions with at least 20% support each.
- Negotiating Council recognition valid for 3 years, extendable by mutual agreement up to 5 years.
- Applies to establishments with 300+ workers.
- Adopt the Central Government Model Standing Orders and intimate the Certifying Officer — or prepare draft standing orders within 6 months.
- Certifying Officer must certify within 60 days, after which the draft is deemed certified.
- Serve prior notice to the appropriate government before any lay-off, retrenchment, or closure.
- Lay-off compensation: 50% of basic wages + DA for the lay-off period.
- Retrenchment: one month's prior notice + 15 days' average pay per completed year of service.
- Closure: 60 days' prior notice to the appropriate government.
- Contribute 15 days' wages per retrenched employee to the Workers' Re-Skilling Fund.
- Obtain prior permission from the appropriate government — not just notice.
- Retrenchment notice extended to three months (vs one month below 300).
- Closure application must be filed 90 days in advance.
- Same compensation: 15 days' pay per year + Re-Skilling Fund contribution.
Key ChangeThe threshold for prior government permission has been raised from 100 to 300 workers. Establishments between 100–299 workers now only need to serve notice — not seek permission. A significant change in operational flexibility.
- Applies to all establishments with 20+ employees. The earlier restriction to scheduled industries has been removed. New
- Employer contributes 10% of wages to PF. Employee contributes the same. If employee opts to contribute more, employer is not required to match beyond 10%.
- Applies to every establishment with 10+ persons, except seasonal factories.
- Also applies to hazardous or life-threatening establishments — even with a single employee.
- Employer pays both employer's and employee's ESI contributions.
- Family definition for women employees now includes dependent parents-in-law.
- Payable after 5 years of continuous service on superannuation, retirement, resignation, death, or disablement.
- Fixed-term employees: eligible after 1 year. Pro-rata calculation on contract expiry. New
- Rate: 15 days' wages per completed year of service, subject to the statutory maximum of ₹20 lakh.
- Must be paid within 30 days from the date it becomes payable. Interest accrues on delay.
- All employees with one or more years of service must make a nomination.
Compliance WatchThe FTE gratuity change is an immediate balance-sheet obligation. If you have not provisioned for fixed-term employees with over one year of service, do it now. Use our Gratuity Calculator to quantify the impact.
- Eligible if the woman employee has worked at least 80 days in the preceding 12 months.
- Grant 26 weeks of maternity benefit.
- Do not dismiss or discharge a woman employee absent on maternity leave.
- Pay a medical bonus of ₹3,500 to every eligible woman.
- Provide two nursing breaks in addition to regular intervals until the child reaches 15 months.
- Crèche mandatory at 50+ employees.
- Gig and platform workers formally recognised under law for the first time. New
- Aggregators must contribute 1%–2% of annual turnover to the designated social security fund, capped at 5% of total amount paid to platform workers.
- Every establishment with 10+ employees must register electronically within 60 days of existence.
- Already registered under a Central Act? No need to re-register — just intimate existing details to the Registering Officer.
- Changes to establishment particulars must be intimated within 30 days.
- Issue appointment letters to every employee. No exceptions. This is the most universally applicable new obligation. New
- Provide free annual health check-ups to all employees. Workers in hazardous processes: free check-ups regardless of age.
- Maintain a workplace free from hazards likely to cause injury or disease.
Compliance WatchAppointment letters are likely to be the first thing checked in early inspections. If you haven't issued them to all employees — including existing employees — start now.
- Maintain clean, hygienic conditions: ventilation, lighting, safe drinking water, separate toilets for male/female/transgender workers.
- Welfare: washing and bathing areas, sitting arrangements, lockers, first aid, rest rooms.
- Canteen at 100+ workers. Crèche at 50+ employees for children below six years.
- Ambulance room in mines and construction sites with 500+ workers.
- Women permitted to work in all establishments and all types of work.
- Night work (before 6 AM or after 7 PM): obtain prior written consent and comply with prescribed safety conditions.
- Provide adequate safety safeguards before employing women in hazardous or dangerous operations.
- Pregnant women may be restricted from processes involving serious risk of injury, poisoning, or disease.
- Applies where 50+ contract labourers are employed on any day in the preceding 12 months.
- Contractor employing 50+ workers must obtain a licence, valid for 5 years.
- Principal employer is responsible for welfare facilities under Sections 23 and 24 for contract workers.
- If contractor fails to pay wages, principal employer is liable to pay directly to the contract labour.
- Contractor must issue an experience certificate on demand to contract workers. New
The official Ministry summary of what every employer needs to do — organised by when it needs to be done. Click each category to expand.
Register the establishment and obtain licences as applicable
Display all mandatory notices on the notice board
Maintain basic registers — attendance, wages, deductions, overtime
Fix the wage period — daily, weekly, fortnightly, or monthly
Ensure basic workplace safety, health and welfare measures
Start EPF and ESIC registration if eligible
Constitute Works Committee and Grievance Redressal Committee
Pay wages on time within the prescribed timeline
Deduct and deposit EPF and ESIC contributions
Issue wage slips to all employees
Update all registers regularly
File the Unified Annual Return electronically
Update minimum wage rates when revised by the appropriate government
Check and renew applicable licences
Conduct annual safety audit where applicable
Annual health examination for all employees aged 40 and above
Report accidents and dangerous occurrences within 24–72 hours
Issue appointment letter to every new recruit
Settle final dues on exit: wages within 2 working days, gratuity within 30 days
Pay maternity benefit to eligible employees
Apply for government permission on lay-off/retrenchment/closure if 300+ workers
Issue strike or lockout notice to appropriate authority within 5 days