Employment
Four Labour Codes enacted but still not fully in force
Parliament consolidated twenty-nine statutes into four Codes between 2019 and 2020, but commencement awaits state rules, so the older Acts continue to govern in most states.
Key rules
- Deadline — Provident fund and ESI contributions by the 15th of the following month
- Deadline — Government permission before retrenchment in establishments above the statutory size
- Deadline — Gratuity payable within 30 days of becoming due
Governing law
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions Code, 2020
- Industrial Disputes Act, 1947still operative
In practice
This is the single most common source of error in Indian employment advice: the Codes are frequently described as current law, but because most states have not notified rules the Industrial Disputes Act, Factories Act and their companions still apply. Establishments above a threshold (100 workers, 300 in some states) need government permission to retrench. Gratuity accrues after five years at fifteen days' wages per year. Non-compete clauses are void after termination under section 27 of the Contract Act.