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Employment Laws

The labour codes: what employers should update first

Wage definitions, fixed-term employment and the contracts that need revisiting.

India's four labour codes consolidate a long list of earlier statutes on wages, industrial relations, social security and occupational safety. For employers, the practical changes are concentrated in a few areas.

The definition of wages

A uniform definition of wages, with limits on excluded allowances, affects how salary is structured and therefore gratuity, provident fund and other benefits.

Fixed-term employment

Fixed-term employees are entitled to benefits on par with permanent staff, including pro-rata gratuity. Template contracts should reflect this.

Policies and registers

Standing orders, leave policies and statutory registers all need checking against the new framework, along with State-level rules as they are notified.

This note is general information, not legal advice. For advice on your own matter, see our Employment Laws practice or contact the firm.