Introduction
The New Labour Codes 2026 consolidate 29 central labour laws into four comprehensive codes, simplifying compliance but also imposing stricter obligations. For employers, compliance is no longer fragmented across multiple statutes; instead, it is classified into foundational, monthly, annual, and event-based obligations.
This classification ensures that employers can plan compliance systematically, avoiding penalties and ensuring worker welfare. Below is a detailed breakdown of compliance requirements under the Code on Wages, Industrial Relations Code, Occupational Safety & Health Code, and Social Security Code.
📅 Visual Compliance Calendar – Employers under Labour Codes 2026
01 – Complete Foundational Compliance
Register the establishment, obtain licences, display mandatory notices, maintain basic registers, fix wage periods, ensure workplace safety, and initiate EPF/ESIC registration.
02 – Meet Monthly Obligations
Pay wages on time, deduct and deposit EPF/ESIC contributions, issue wage slips, and update registers regularly.
03 – Fulfil Annual Requirements
File the unified annual return, update minimum wage rates if revised, renew licences, conduct safety audits, and arrange annual health examinations.
04 – Respond to Event-Based Triggers
Report accidents or occupational diseases within 24–72 hours, issue appointment letters to new recruits, settle dues on exit, provide maternity benefits, and seek government permission for lay-offs or closures.
05 – Manage Industrial Relations Events
Issue statutory notices for strikes or lockouts, constitute Works Committees and Grievance Redressal Committees, and maintain harmonious relations with workers.
Classification of Employer Compliances
Foundational Compliance
These are the obligations that must be completed at the inception of the establishment:
• Register the establishment and obtain licences under relevant codes.
• Display mandatory notices (minimum wages, working hours, inspector details).
• Maintain basic registers: attendance, wages, deductions, overtime.
• Fix wage periods (daily/weekly/fortnightly/monthly).
• Ensure workplace safety, health, and welfare measures.
• Register under EPF/ESIC if eligible.
• Constitute Works Committee (100+ workers) and Grievance Redressal Committee (20+ workers).
Monthly Compliance
Recurring obligations to be met every wage cycle:
• Pay wages within statutory timelines (Section 6, Code on Wages).
• Deduct and deposit EPF/ESIC contributions.
• Issue wage slips to all employees.
• Update registers (attendance, wages, overtime, deductions).
Annual / Periodical Compliance
Obligations that recur annually or periodically:
• File Unified Annual Return electronically.
• Update minimum wage rates if revised by government.
• Renew licences (factories, contract labour, etc.).
• Conduct annual safety audit (OSH Code).
• Provide annual health examination for specified employees.
Event-Based Compliance
Triggered by specific events in the employment cycle:
• Report accidents, dangerous occurrences, or occupational diseases within 24–72 hours.
• Issue appointment letters to every new recruit.
• Settle final dues on exit: wages within 2 days, gratuity within 30 days.
• Pay maternity benefits to eligible employees.
• For factories, mines, plantations with 300+ workers, obtain government permission before lay-off, retrenchment, or closure.
• Issue statutory notices of lockout or strike to workers and authorities.
Common Rules Across Codes
• Unified Definitions: “Wages” now include basic + DA, with allowances capped at 50% of CTC.
• Electronic Records: Registers and returns must be maintained electronically.
• Transparency: Mandatory display of wage rates, working hours, and inspector details.
• Worker Welfare: Appointment letters, health check-ups, crèches, canteens, and safety committees.
Penalties for Non-Compliance
The Labour Codes adopt a facilitative approach but impose strict penalties for violations:
• Monetary fines for delayed wage payments, non-maintenance of registers, or failure to provide welfare facilities.
• Inspector-cum-Facilitator powers to issue improvement notices.
• Compounding of offences introduced for minor violations.
• Prosecution for repeated or serious breaches, especially in cases of retrenchment without permission or unsafe working conditions.
Procedural Aspects
• Registration & Licensing: Single electronic registration and licence system across codes.
• Returns: Unified annual return replaces multiple filings.
• Record-Keeping: Registers must be preserved for 5 years.
• Notices: Mandatory display in English, Hindi, and local language.
• Settlement of Dues: Strict timelines enforced (2 days for wages, 30 days for gratuity).
Conclusion
The New Labour Codes 2026 demand a structured compliance approach. Employers must classify obligations into foundational, monthly, annual, and event-based tasks, supported by electronic systems and transparent processes. While compliance costs may rise, the Codes promise greater clarity, reduced litigation, and improved worker welfare.
For HR managers and compliance officers, the practical takeaway is clear: create a compliance calendar, integrate payroll with PF/ESIC systems, and maintain electronic registers to avoid penalties.
