01Overview
What is labour law compliance?
Labour law refers to the laws and regulations governing the relationship between employers and employees, covering wages, working hours, leave, employment conditions, social security, workplace safety, and other aspects of employment. In India, these requirements may arise under central legislation, state-specific laws, rules, and notifications.
Labour law compliance means fulfilling the employment-related legal obligations that apply to your business: maintaining employee records, meeting wage and benefit requirements, submitting prescribed returns, and following workplace regulations. Obligations depend on the nature of the business, employee strength, location, industry, and type of establishment.
Managing these requirements gets harder as a business hires more people or expands into other states. Tax Uncle helps businesses understand their obligations, organise documentation, and manage employment-related statutory requirements.
02What It Covers
What labour law compliance may cover
Depending on the establishment and its circumstances, labour law compliance may cover:
- Employee appointment letters and employment documentation
- Minimum wage and timely wage payment requirements
- Working hours, overtime, weekly rest, and leave
- Provident Fund (PF) and Employees' State Insurance (ESI), where applicable
- Professional tax and labour welfare fund requirements, where applicable
- Maintenance of prescribed registers and employment records
- Workplace health and safety requirements
- Prevention of sexual harassment at the workplace
- Statutory notices, returns, registrations, and licences
- Employment termination and other employee-related procedures
03By Headcount
Which labour laws apply to your business?
Compliance is not determined by company size alone. Some obligations apply from the start of operations, others depend on employee strength or contract workers, and multi-state businesses face different state rules. The four Labour Codes came into effect on 21 November 2025, consolidating several central labour laws.
From the start of operations
5 items- Shops and establishments: Registration or compliance under the applicable state law, covering hours, holidays, leave, overtime, and records. See Shops & Establishment.
- Minimum wages: Comply with minimum wages for the employee category, location, and type of work.
- Professional tax: In states that levy it, register, deduct, and deposit the tax. See Professional Tax.
- Employment documentation: Maintain appointment letters, wage records, attendance, and other documents.
- Child and adolescent labour: Follow restrictions on employing children and adolescents, including in hazardous work.
10 or more employees
4 items- ESI: Assess registration, employee coverage, contributions, and filing requirements.
- POSH: Generally constitute an Internal Committee; smaller workplaces may fall under the Local Committee mechanism.
- Gratuity: Evaluate gratuity obligations and employee eligibility.
- Maternity benefits: Review maternity benefit requirements for eligible employees.
20 or more employees
3 items- EPF: Assess registration, enrolment, contributions, and reporting. Coverage depends on wage rules and establishment category. See PF & ESI registration.
- Industrial relations: Covered industrial establishments evaluate grievance redressal and related obligations.
- Employment records: Maintain employee records, wage information, and statutory documentation.
50 or more employees or contract workers
3 items- Crèche facility: Covered establishments with 50 or more employees assess the requirement to provide crèche access.
- Contract labour: Review registration, licensing, records, and welfare duties. The general threshold under the OSH Code is 50 contract workers, subject to its scope and exceptions.
- Contractor documentation: Principal employers and contractors identify their duties on worker records, wages, and safety.
Industry- and workforce-specific
5 items- Factories and manufacturing: Workplace safety, health, welfare, registration, and licensing.
- Construction: Worker safety, welfare contributions or cess, and registration.
- Mines and hazardous operations: Sector safety standards, medical examinations, and reporting.
- Inter-state migrant workers: Registration, record-keeping, and welfare obligations.
- Multi-state businesses: State-specific employment and establishment rules for each location.
04Assessment
Why is a labour law applicability assessment important?
Identifying the correct requirements means not relying on a single employee-count threshold for every law. It supports better documentation, timely filings, and better management of employment risk. A proper assessment considers:
- The type of establishment and industry
- The number and category of employees or workers
- The use of contractors and inter-state migrant workers
- The states in which employees work
- The applicable Labour Codes, rules, notifications, and transitional requirements
05Key Areas
Key areas of labour law compliance
Employment documentation
Employee records, appointment letters, employment terms, attendance, and other prescribed documentation.
Wages and salary
Minimum wages, wage-payment rules, overtime, and permitted deductions, assessed against your salary structures.
Provident Fund and ESI
Where applicable, manage registrations, contributions, employee records, and filings on time. Payroll support is available too.
Working hours, leave, and holidays
Hours, rest intervals, weekly holidays, leave, and overtime, which vary by establishment, state, and industry.
Statutory registers and returns
Prescribed registers, employee records, notices, and returns under the applicable legislation.
Workplace safety and welfare
Health, safety, and welfare obligations, with policies that support a compliant working environment.
Workplace policies and grievances
Policies and processes for addressing employee grievances, misconduct, and other employment matters.
06Benefits
Benefits of labour law compliance
Reduced compliance risk
Identifies statutory obligations and addresses potential gaps.
Better record management
Keeps employment documentation and compliance records organised.
Improved employee relations
Supports transparent employment practices and clearer workplace policies.
Timely statutory filings
Helps track relevant deadlines and filing requirements.
Better business readiness
Organised records support inspections, audits, and due diligence.
Consistent processes
A structured approach to managing employee-related obligations.
07Why Tax Uncle
Labour law compliance services by Tax Uncle
Tax Uncle helps businesses understand their labour law requirements and organise the processes to manage them. Our support may include:
- Preliminary review of applicable labour law requirements
- Assistance with employment documentation and statutory records
- Guidance on applicable PF, ESI, and other employment-related obligations
- Support with relevant registrations, returns, and compliance documentation
- Compliance calendar and deadline management
- Identifying documentation gaps and potential compliance risks