Labour Law Compliance Services in India

Ensure Statutory Compliance and Build a Legally Compliant Workplace

Labour law compliance is one of the key responsibilities of every employer operating in India. Businesses are required to comply with Central and State labour laws governing employee welfare, social security, wages, working conditions, employment documentation, workplace safety and statutory benefits.

Non-compliance may result in penalties, statutory interest, regulatory inspections, employee disputes, litigation and reputational risk. Labour-law deficiencies can also create issues during funding, investment, mergers, acquisitions and other due-diligence exercises.

India’s labour-law framework has undergone a significant transformation following implementation of the four Labour Codes with effect from 21 November 2025:

• Code on Wages, 2019
• Industrial Relations Code, 2020
• Code on Social Security, 2020
• Occupational Safety, Health and Working Conditions Code, 2020

Together, the four Labour Codes consolidate 29 earlier Central labour laws. Employers should therefore review their payroll structures, HR policies, employment documentation, social-security processes, statutory registers and workplace practices to ensure alignment with the applicable framework.

The latest Codes, Rules and notifications may be accessed through the Ministry of Labour & Employment – Labour Codes portal.

Whether you are a start-up, SME, multinational corporation, manufacturing company, IT company, service provider, retail business or foreign company establishing operations in India, maintaining continuous compliance with labour laws is essential for smooth business operations and sustainable growth.

At EzyBiz India, we provide comprehensive Labour Law Compliance Services in India to help businesses meet their statutory obligations under applicable labour and employment laws. Our team assists clients in establishing compliant HR practices, obtaining statutory registrations, managing ongoing labour law compliances, conducting compliance audits, responding to inspections and notices, and advising on complex employment law matters.

With extensive experience in regulatory compliance and business advisory, we work closely with Indian companies as well as foreign investors establishing subsidiaries, branch offices, liaison offices, project offices and joint ventures in India to ensure that their employment practices comply with Indian labour laws.

Why Labour Law Compliance Matters

An organisation’s workforce is one of its most important assets. At the same time, employment-related regulations in India impose multiple obligations on employers throughout the employee lifecycle.

Depending upon the nature and size of the establishment, employers may have compliance obligations relating to:

• Provident Fund and social security
• Employees’ State Insurance
• Wages and salary payments
• Bonus and gratuity
• Shops & Establishments requirements
• Working hours and leave
• Contract labour
• Occupational health and workplace safety
• POSH compliance
• Employment contracts and HR policies
• Statutory registers and records
• Periodic returns and reporting
• Labour inspections and notices
• State-specific employment requirements

Failure to comply may expose an organisation to:

• monetary penalties and statutory interest;
• labour-department inspections;
• employee disputes and litigation;
• prosecution in applicable cases;
• operational disruption;
• reputational risk; and
• compliance issues during investments, acquisitions or corporate due diligence.

A properly designed labour-law compliance framework not only reduces regulatory risk but also improves corporate governance and gives management greater visibility over employee-related obligations.

Labour Law Reforms Under the New Labour Codes

The implementation of the four Labour Codes represents one of the most significant reforms of India’s employment-law framework.

The reforms aim to consolidate multiple Central labour laws, promote digital compliance, simplify processes and strengthen social-security and employee-welfare provisions.

At the same time, employers need to examine the applicable Central Rules, State Rules and establishment-specific requirements.

Code on Wages, 2019

The Code on Wages provides a consolidated framework dealing with wages, minimum wages, payment of wages, bonus and related wage matters.

Employers should review salary structures and payroll practices to ensure compliance with the applicable provisions and Rules.

Industrial Relations Code, 2020

The Industrial Relations Code deals with areas such as industrial relations, trade unions, standing orders and resolution of industrial disputes.

Applicability depends upon the nature and size of the establishment and workforce.

Code on Social Security, 2020

The Code on Social Security consolidates several social-security laws and covers matters including provident fund, employee state insurance, gratuity and other social-security benefits.

Employers should review employee coverage, contribution practices and payroll systems accordingly.

Occupational Safety, Health and Working Conditions Code, 2020

The OSH Code consolidates various requirements relating to occupational safety, health, factories, working conditions, contract labour and other categories of workers and establishments.

Businesses should examine the applicable provisions together with the relevant Central and State Rules.

Our Labour Law Compliance Services

EzyBiz India provides end-to-end labour-law compliance and advisory support throughout the employee lifecycle—from recruitment and onboarding to payroll, statutory compliance and employee separation.

Our services include:

• Labour-law applicability review
• Labour-law advisory and regulatory compliance
• Employer statutory registrations
• Provident Fund / EPF compliance
• Employees’ State Insurance compliance
• Shops & Establishments registration and compliance
• Contract-labour compliance
• Wage, bonus and gratuity compliance
• Payroll-linked statutory compliance
• Employment contracts and HR documentation
• POSH compliance
• Labour-law compliance audits
• Compliance health checks
• Assistance with notices and inspections
• Representation before labour authorities, where applicable
• Compliance support for foreign-owned companies
• Ongoing monthly and annual compliance assistance

Employee Registration & Statutory Compliance

Every employer needs to identify which labour laws and registrations apply to its business.

Applicability may depend upon:

• nature of business;
• number of employees;
• salary levels;
• industry;
• location;
• use of contract labour; and
• whether the establishment carries on manufacturing or other regulated activities.

Our professionals assist businesses in identifying applicable labour laws and implementing appropriate statutory registrations and compliance systems.

Our services include:

• identification of applicable labour laws;
• employer registrations;
• Shops & Establishments registration;
• guidance on labour registrations for new establishments;
• maintenance of statutory registers and records;
• periodic statutory filings;
• State-specific compliance review; and
• support during labour-department inspections.

Businesses setting up operations in India can also explore our Business Registration & Licensing Services in India.

Provident Fund (EPF) Compliance

Provident Fund forms an important part of employee social-security compliance.

Employers covered by the applicable PF framework need to ensure appropriate registration, employee enrolment, contribution compliance and maintenance of supporting records.

The official EPFO employer resources are available through the Employees’ Provident Fund Organisation.

Our EPF compliance services include:

• review of PF applicability;
• employer registration assistance;
• employee enrolment and UAN support;
• monthly contribution compliance;
• payroll review for PF purposes;
• ECR and challan-related support;
• review of delayed or missed contributions;
• employee transfer and exit assistance;
• contractor-PF compliance review;
• compliance health checks;
• assistance during EPFO assessments and inspections; and
• representation before EPFO authorities, where applicable.

Employees’ State Insurance (ESI) Compliance

Employees’ State Insurance provides medical and social-security benefits to eligible employees.

Employers satisfying the applicable statutory criteria are required to obtain registration, enrol eligible employees, deposit contributions and maintain prescribed records.

Our ESI compliance services include:

• ESI applicability review;
• employer registration;
• employee registration;
• monthly contribution compliance;
• employee data updates;
• compliance reviews;
• assistance relating to employee benefits;
• support during ESIC inspections and audits; and
• representation before ESIC authorities.

For a detailed procedural explanation, read our dedicated guide on the ESIC Registration Process.

Shops & Establishments Compliance

Commercial establishments may be required to comply with the Shops and Establishments legislation applicable in the respective State or Union Territory.

These laws may regulate:

• registration;
• working hours;
• weekly holidays;
• leave;
• employment conditions;
• statutory displays;
• registers and records; and
• periodic filings.

Our services include:

• Shops & Establishments registration;
• amendment of registration details;
• advisory on working hours and leave provisions;
• maintenance of statutory records;
• display and notice compliance;
• periodic compliance review; and
• State-specific labour-law advisory.

Contract Labour Compliance

Businesses engaging contract workers need to carefully examine their obligations as principal employers and the compliance position of contractors.

Our assistance includes:

• applicability review;
• principal-employer compliance;
• contractor registration and licensing guidance, where applicable;
• contract-labour documentation;
• statutory registers and records;
• social-security compliance review;
• contractor compliance monitoring;
• labour-law audits; and
• assistance during labour-authority proceedings.

Factory Compliance & Occupational Safety

Manufacturing companies and industrial establishments are subject to specialised requirements relating to employee welfare, occupational safety, working conditions and statutory inspections.

The Occupational Safety, Health and Working Conditions Code has consolidated several earlier Central labour laws relating to areas including factories, contract labour and workplace safety.

Our services may include:

• factory-related registration advisory;
• OSH compliance review;
• health and safety policy review;
• workplace-risk assessment;
• employee-welfare compliance;
• statutory registers and records;
• support during factory and labour inspections; and
• compliance audits for manufacturing establishments.

Minimum Wages, Bonus & Gratuity Compliance

The Code on Wages has introduced a consolidated framework dealing with wages, minimum wages, payment of wages and bonus.

Employers should periodically review:

• minimum-wage compliance;
• salary structure;
• timely wage payments;
• statutory bonus;
• gratuity eligibility and computation;
• overtime, where applicable;
• full-and-final settlement; and
• employee-separation payments.

Businesses should also review existing salary structures in light of the Labour Codes rather than relying indefinitely on historical payroll structures.

Payroll & Statutory Compliance

Payroll processing and labour-law compliance are closely connected.

Employers need to ensure accurate salary processing, timely statutory deductions and proper maintenance of payroll records.

Our payroll-related compliance services include:

• payroll compliance advisory;
• statutory deductions and contributions;
• PF and ESI coordination;
• Professional Tax compliance, where applicable;
• Labour Welfare Fund compliance, where applicable;
• leave and attendance compliance;
• salary-structure review;
• payroll health checks;
• employee compensation documentation;
• full-and-final settlement review; and
• support during payroll-related inspections.

Businesses requiring broader outsourced support can also review our Managed Business Services in India.

Sexual Harassment (POSH) Compliance

Every employer is required to provide a safe and respectful workplace.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 establishes obligations relating to prevention and redressal of workplace sexual harassment.

Depending upon the applicable statutory conditions, employers may need to constitute an Internal Committee, maintain appropriate policies and establish a complaint-handling mechanism.

Our POSH compliance services include:

• applicability advisory;
• assistance with constitution of the Internal Committee;
• drafting and review of POSH policies;
• review of complaint procedures;
• compliance health checks;
• annual compliance advisory; and
• guidance on employer responsibilities.

Employment Contracts & HR Documentation

Employment documentation plays an important role in establishing clear rights and obligations between an employer and employees.

Employers should periodically review appointment letters, employment agreements, HR policies and employee handbooks so that documentation remains consistent with actual organisational practices and the applicable labour-law framework.

Our services include drafting and review of:

• employment agreements;
• appointment letters;
• offer letters;
• employee handbooks;
• HR policies;
• leave policies;
• confidentiality and Non-Disclosure Agreements;
• codes of conduct;
• separation documentation; and
• other HR compliance documents.

Labour Law Audit & Due Diligence

Regular labour-law audits help organisations identify compliance gaps before they become regulatory issues.

A compliance review is also useful during mergers, acquisitions, private-equity investments, funding transactions and due-diligence exercises.

Our Labour Law Compliance Audit may cover:

• statutory registrations;
• employee records;
• statutory registers;
• EPF compliance;
• ESI compliance;
• payroll and wage compliance;
• HR policies;
• employment documentation;
• POSH compliance;
• contractor compliance;
• employee-benefit obligations; and
• applicable Labour Code requirements.

Following the review, we can provide a practical action plan identifying gaps and recommended corrective measures.

Compliance Support for Foreign Companies Operating in India

Foreign companies establishing operations in India often require additional support in understanding Indian employment and labour regulations.

Labour-law compliance should therefore form part of the initial India Market Entry planning process.

Whether an overseas business establishes a:

• Wholly Owned Subsidiary;
• Joint Venture;
• Branch Office;
• Liaison Office; or
• Project Office,

we can assist in designing and maintaining an appropriate Indian employment-compliance framework.

Our assistance can include:

• employment agreements;
• payroll structure;
• social-security compliance;
• statutory registrations;
• HR policies;
• employee benefits;
• compliance calendars; and
• ongoing labour-law support.
  

  Why Choose EzyBiz India?

  Labour-law compliance requires coordination between HR, finance, payroll, management and professional advisers. At EzyBiz India, we combine regulatory knowledge with practical business experience to provide compliance solutions suited to the client’s operations.

  Businesses choose us for:

  • comprehensive labour-law advisory;
  • assistance with statutory registrations;
  • ongoing compliance support;
  • payroll-linked compliance;
  • labour-law audits;
  • assistance during notices and inspections;
  • practical HR and employment documentation;
  • support for foreign-owned businesses; and
  • integrated tax, FEMA, corporate and payroll advisory.

  Businesses in Delhi and NCR looking for wider accounting, tax and compliance support can also visit our Chartered Accountant in Delhi page.

  Need Professional Labour Law Compliance Support?

  Whether you are establishing a new business, expanding your workforce, engaging contract labour or strengthening your HR compliance framework, EzyBiz India can assist you with practical and ongoing Labour Law Compliance Services in India.

  We assist with PF, ESI, payroll compliance, Shops & Establishments requirements, employment documentation, labour-law audits and ongoing statutory support.

  Speak With Our Experts

  Frequently Asked Questions (FAQs)

  Which labour laws apply to my business in India?

  Applicability depends upon the nature of business, industry, employee strength, location, salary levels and State-specific requirements.

  An applicability review should therefore be carried out based on the facts of each establishment.

  Are the four new Labour Codes applicable in India?

  Yes. The Central Government brought the four Labour Codes into effect from 21 November 2025.

  Employers should examine the relevant Codes, Rules and State-specific requirements applicable to their establishments.

  Is EPF registration mandatory for every employer?

  No. EPF applicability depends upon the statutory conditions relevant to the establishment and employee strength.

  Businesses should undertake an applicability review rather than assume that PF registration is mandatory in every case.

  When is ESI registration required?

  ESI registration becomes applicable where the establishment and eligible employees satisfy the prescribed statutory conditions.

  For more details, see our ESIC Registration Process.

  Is POSH compliance mandatory?

  Employers are required to comply with the POSH Act as applicable to their establishment. Certain employers must also constitute an Internal Committee based upon the statutory requirements.

  Can labour authorities inspect a business?

  Yes. Labour and social-security authorities may inspect establishments and verify statutory compliance.

  Maintaining proper registrations, payroll records, contribution evidence and statutory documents helps businesses respond efficiently to such inspections.

  Do foreign companies operating in India need to comply with Indian labour laws?

  Yes. Foreign-owned entities employing personnel in India are required to comply with applicable Indian labour and employment laws.

  What does a labour-law compliance audit cover?

  A labour-law audit may review statutory registrations, PF, ESI, payroll, wage compliance, statutory registers, HR documentation, POSH, contract labour and employee-benefit obligations.

  Can EzyBiz India handle ongoing labour-law compliance?

  Yes. We provide statutory registration, monthly compliance, payroll-linked support, HR documentation, compliance reviews, audit support and assistance with regulatory proceedings depending upon the agreed scope.

  Do you provide labour-law compliance services across India?

  Yes. We assist businesses operating across India. Since several requirements are State-specific, the exact compliance scope depends upon the locations in which the business operates.

  Related Services

  • ESIC Registration Process
  • Managed Business Services in India
  • Tax & Regulatory Advisory Services in India
  • India Market Entry Consulting
  • Corporate Secretarial & ROC Compliance
  • FEMA & RBI Advisory
  • Chartered Accountant in Delhi

  Official Resources

  • Ministry of Labour & Employment – Labour Codes
  • Employees’ Provident Fund Organisation
  • Employees’ State Insurance Corporation

  Looking for Reliable Managed Business Services?

  Get professional support for accounting, bookkeeping, payroll, financial reporting and virtual CFO services in India.

  Speak With Our Managed Services Experts

  Prepared By

  Anil Agrawal
  Chartered Accountant | Founder – EzyBiz India Consulting LLP

  Last Updated

  August 2026

  Disclaimer

  The information provided on this page is intended for general informational purposes only and does not constitute legal, tax or professional advice.

  Labour and employment laws, Rules, notifications, thresholds and procedures may change and may differ depending upon the facts of each case, nature of establishment and applicable State legislation.

  Businesses should verify the latest statutory requirements and obtain appropriate professional advice before taking action.