India has undertaken a major reform of its labour law framework by consolidating 29 central labour laws into four comprehensive labour codes. These codes aim to simplify compliance, promote ease of doing business, and strengthen worker protection.
The four new labour codes are:
Code on Wages, 2019
Industrial Relations Code, 2020
Code on Social Security, 2020
Occupational Safety, Health and Working Conditions Code, 2020
These reforms will significantly impact wage structures, social security contributions, employment terms, industrial relations, and workplace safety standards across industries.
At Legit Advisory, we assist organizations in understanding, preparing for, and transitioning smoothly into the new labour code regime.
1. Code on Wages, 2019
This code subsumes laws relating to minimum wages, payment of wages, bonus, and equal remuneration. One of the most significant changes is the concept of a uniform “Definition of Wages,” which directly impacts salary structuring, PF contributions, gratuity calculations, and bonus payments.
Our advisory ensures businesses realign their salary structures and HR policies in accordance with the revised wage framework.
2. Industrial Relations Code, 2020
This code governs trade unions, standing orders, and dispute resolution mechanisms. It introduces revised thresholds for layoffs, retrenchment, and closure, along with new provisions for fixed-term employment.
We assist organizations in reviewing employment contracts, standing orders, disciplinary procedures, and termination policies to ensure compliance with the updated framework.
3. Code on Social Security, 2020
This code consolidates laws related to PF, ESIC, gratuity, maternity benefits, and other social security measures. It expands coverage and introduces provisions for gig workers and platform workers.
Our team evaluates your existing social security compliance structure and ensures alignment with the expanded obligations under the new code.
4. Occupational Safety, Health and Working Conditions Code, 2020
This code integrates laws relating to factories, contract labour, migrant workers, and workplace safety. It introduces common registration, licensing, and enhanced compliance standards for health and safety.
We support organizations in updating safety policies, contractor compliance frameworks, and workplace documentation to meet the revised requirements.
How Legit Advisory Supports Transition
Labour Code impact assessment for your organization
Salary structure and wage definition restructuring
Policy and HR manual review
Compliance gap analysis
Documentation and contract updates
Advisory on implementation readiness
Ongoing compliance support once rules are enforced
Early Preparation Matters
Although full implementation depends on notification by the Government, proactive preparation reduces financial impact, avoids last-minute restructuring, and ensures seamless transition once enforcement begins.
Legit Advisory helps organizations stay ahead of regulatory change with clarity, strategy, and compliance confidence.