India's four Labour Codes — the Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions (OSH) Code — came into force on 21 November 2025, replacing 29 older labour laws. Central rules have since been notified, and states are issuing their own. Almost a year in, many small and mid-sized employers still run payroll, contracts and HR files the old way.
This practical checklist is written for business owners, HR heads and plant managers in manufacturing, logistics, retail, services and staffing-heavy industries. It is the same review list our compliance team at Galaxy Resource Pvt Ltd (GRPL India) uses when we onboard a new staffing client. It is a guide, not legal advice — confirm details for your state and sector with your labour law advisor.
Why This Matters Now
The codes changed definitions that flow into every salary slip and contract: what counts as "wages", who is a fixed-term employee, what a contract worker is entitled to, and what documents you must issue. Inspections are also moving to a web-based, risk-based model, so gaps in records are easier to spot. The official notifications and FAQs are available on the Ministry of Labour and Employment website, and the PIB release on the Labour Codes summarises the key benefits.
The 10-Point HR Compliance Checklist
1. Re-check your salary structure against the 50% wage rule
Under the uniform definition of wages, if excluded allowances (HRA, conveyance, special allowance and similar) exceed 50% of total remuneration, the excess is added back to wages for statutory calculations. Many CTC structures built with a low basic will see higher PF and gratuity costs. Model the impact role by role before the next increment cycle.
2. Issue appointment letters to every employee
Appointment letters are now mandatory, including for workers who earlier joined on a verbal promise. The prescribed format covers designation, type of employment (regular, fixed-term or contractual), skill category, date of joining, wages and allowances, and applicability of EPF and ESI. Fix your template once and use it for every hire.
3. Review fixed-term contracts
Fixed-term employees must get the same wages, hours and benefits as permanent staff doing similar work, and are eligible for gratuity after one year of continuous service. Update FTE templates, gratuity provisions and exit settlements accordingly.
4. Audit contract labour and your staffing vendors
As principal employer, you must ensure contract workers receive their statutory health and social security benefits. Ask every manpower vendor for monthly PF and ESI challans and verify them on the EPFO and ESIC portals. A non-compliant vendor is now your risk too.
5. Update working hours, overtime and leave policies
Normal hours stay within 48 hours a week. Work beyond the daily or weekly limit is paid as overtime at twice the ordinary rate, and the central rules cap overtime per quarter. Check your shift rosters, attendance software and leave rules against your state's notified rules.
6. Plan for gig and platform workers
Gig work, platform work and aggregators are defined for the first time. Aggregators are required to contribute 1–2% of annual turnover (capped at 5% of payments to such workers) towards a social security fund. If you use delivery or on-demand workers, clarify who the aggregator is in each arrangement. Encourage eligible workers to register on e-Shram.
7. Women's employment and welfare provisions
The codes permit women to work in all establishments and in night shifts, with their consent and adequate safety arrangements. Review transport, security and grievance mechanisms. Establishments above the prescribed headcount must provide crèche facilities or the permitted alternative.
8. Health and safety records
Under the OSH Code, certain sectors must provide free annual health check-ups for workers above a specified age. Maintain safety committee minutes, accident registers and training records digitally.
9. Grievance redressal and standing orders
Establishments with 20 or more workers need a grievance redressal committee. Check whether your headcount now requires standing orders under the Industrial Relations Code, and update notice-period, misconduct and retrenchment clauses.
10. Move registers and returns online
The codes push towards single registration, electronic registers and unified returns. Clean, digital HR records make audits faster and reduce penalties for paperwork gaps.
What This Means for Hiring Strategy
With FTEs gaining gratuity after a year and contract workers' benefits becoming the principal employer's concern, many companies are re-examining their workforce mix. Our guide on contract staffing vs permanent hiring walks through that decision, and our 2027 workforce planning framework helps you budget for it. Pre-joining checks remain essential too; see our background verification checklist.
How Our Group Helps Employers Stay Compliant
Optistaff Solutions Private Limited manages compliant third-party payroll for contract and temporary staff, with monthly statutory proof shared with clients. Galaxy Resource Pvt Ltd handles permanent recruitment with code-compliant offer and appointment documentation, while Bharti HR, Zeevika Consultancy and Naukri Hunter source verified candidates for frontline and mid-level roles. Whether you work with Galaxy Resource Pvt Ltd, Optistaff Solutions Private Limited, Bharti HR, Zeevika Consultancy or Naukri Hunter, every deployment follows the same documentation standard.
Book a Workforce Compliance Review
Share your headcount mix and salary structure, and we will flag the gaps worth fixing first. Contact the GRPL India team, see roles we are hiring for, or read more industry insights.
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