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.
