Labour Laws
Curious About How the New Labour Codes Will Impact Your Organization?
India’s new Labour Codes are a landmark regulatory overhaul consolidating 29 central labour laws into 4 comprehensive codes. Whether you are an SME or a large enterprise, understanding and preparing for these changes is not optional — it is critical to your business continuity, financial health, and workforce harmony.
mSure provides expert, actionable guidance tailored for your organization’s HR, Payroll & Compliance needs — so you stay ahead, stay protected, and stay competitive.
What We Help You Achieve
- Impact assessment on wages, benefits & HR policies under the new codes
- Clarity on implementation timelines & state-wise rules as they get notified
- Practical roadmap to align your organization with the new Labour Codes
- Custom recommendations tailored to your industry, size & workforce type
Why Labour Code Compliance Is Critical for Your Business
Non-compliance with India’s new Labour Codes can expose your organization to serious legal risks, unexpected financial costs, and reputational damage. Here is why every business needs to act now:
Payroll & Cost Impact
Changes in the statutory wage definition, overtime calculation, leave encashment, and benefits may significantly alter your existing CTC structures and increase your overall compensation costs.
HR Policy Overhaul
Immediate need to review and update appointment letters, HR manuals, standing orders, and engagement models for permanent, contract, and gig workers alike.
Legal & Financial Risk
Non-compliance leads to monetary penalties, increased scrutiny from labour authorities, and potential litigation — all of which can be avoided with timely, expert guidance.
Employee Relations & Retention
Miscommunication or misapplication of new laws can trigger employee distrust, grievances, and even industrial disputes. Proactive communication and policy updates are essential.
India's 4 New Labour Codes
The Government of India has consolidated 29 central labour laws into 4 broad codes. Here is a quick reference to what each code covers and why it matters to your organization:
| Labour Code | Key Provisions & Business Impact |
|---|---|
| Code on Wages, 2019 | Redefines ‘wages’ to include basic pay + DA + retaining allowance. Impacts PF, gratuity, leave encashment, and bonus calculations. Mandates timely wage payment and equal remuneration irrespective of gender. |
| Industrial Relations Code, 2020 | Governs trade unions, collective bargaining, and resolution of industrial disputes. Introduces the concept of fixed-term employment, simplifies layoff and retrenchment norms, and raises the threshold for standing orders applicability. |
| Code on Social Security, 2020 | Expands social security benefits to gig workers, platform workers, and unorganized sector workers. Covers PF, ESIC, gratuity, maternity benefits, and cess for building & construction workers under a unified framework. |
| OSH Code, 2020 | Consolidates occupational safety, health, and working conditions norms. Sets standards for working hours, leaves, welfare facilities, and safety in factories, mines, plantations, and contract labour establishments. |
How mSure Helps You Navigate the New Labour Codes
At mSure, we offer end-to-end support to help your organization transition smoothly to the new Labour Code framework. Our services are designed to be practical, industry-specific, and result-oriented.
01
Online Consultation
Get expert clarity on how the new Labour Codes apply to your specific organization, industry, and workforce — through a focused 1-on-1 session with our senior labour law experts.
02
Written Legal Opinions
Receive authoritative written opinions on specific provisions of the Labour Codes to support your business decisions, board presentations, and internal audits.
03
Wage Restructuring Support
Our experts help you restructure salary and CTC components in line with the new wage definition — minimizing cost escalation while maintaining employee satisfaction.
04
Labour Code Readiness Suite
A comprehensive engagement covering policy audit, vendor compliance review, HR structure alignment, and a step-by-step implementation roadmap for your business.
05
Statutory Committee Setup
End-to-end assistance in forming and operationalizing statutory committees mandated under the new codes — including works committees, grievance redressal committees, and safety committees.
06
HR Policy Re-Drafting
Complete rewriting of standing orders, appointment letters, leave policies, and HR manuals to ensure full alignment with the provisions of the four Labour Codes.
Our Labour Law & Compliance Services
At mSure, we offer end-to-end support to help your organization transition smoothly to the new Labour Code framework. Our services are designed to be practical, industry-specific, and result-oriented.
- Labour Law Advisory — Legal guidance on applicable statutes, compliance gaps, and risk mitigation strategies
- Registrations & Licenses — Shops & Establishment, Contract Labour, ESIC, PF, PT, and other regulatory registrations
- Payroll Compliance Management — Accurate computation and timely remittance of PF, ESIC, PT, TDS, and other statutory dues
- Factory Compliance — Inspection-readiness, safety audits, returns filing, and welfare facility compliance under the Factories Act
- Apprenticeship Compliance (NAPS & NATS) — End-to-end management of apprenticeship programmes under national schemes
- POSH Act Compliance — Internal Committee setup, training, policy drafting, and annual returns under the POSH Act
- Employer & Vendor Compliance Audit — Third-party audits of principal employer and contractor compliance
- Industrial Relations — Support in dispute resolution, union negotiations, conciliation, and disciplinary enquiries
- HR Operations Support — Day-to-day HR process support including onboarding, documentation, and employee lifecycle management
Frequently Asked Questions — New Labour Codes
When will the new Labour Codes come into effect?
The four Labour Codes have been passed by Parliament. Their enforcement depends on the notification of Rules by both the Central and State Governments. Several states have already published draft rules, and implementation is expected to roll out on a state-by-state basis. mSure tracks state-wise notifications in real time to keep your organization informed.
How does the Code on Wages change our salary structure?
The Code on Wages introduces a new definition of ‘wages’ that limits exclusions (like HRA, conveyance, special allowances) to 50% of total remuneration. This means the basic wage component must be at least 50% of the CTC, which directly affects PF contributions, gratuity, and leave encashment calculations.
What is fixed-term employment under the Industrial Relations Code?
Fixed-term employment (FTE) is a new category under the Industrial Relations Code where an employer can hire workers for a specific duration through a written contract. FTE workers are entitled to all statutory benefits on a pro-rata basis and can be engaged without the requirement of a labour contractor.
Does the Code on Social Security cover gig and platform workers?
Yes. For the first time in India, the Code on Social Security, 2020 brings gig workers, platform workers, and unorganized sector workers within the ambit of social security. The Central Government will establish a Social Security Fund for these workers, with contributions from aggregators (platform companies) defined as a percentage of their annual turnover.
What should we do right now to prepare?
The first step is a readiness assessment. mSure can conduct a structured review of your current HR policies, payroll structures, vendor contracts, and compliance processes — and deliver a prioritized action plan specific to your organization and locations of operation.
Need Clarity on the New Labour Codes for Your Organization?
Get expert guidance from mSure and avoid costly compliance mistakes.
Visit: www.msure.co.in | Book a Consultation Today