Labour Ministry Releases Compliance Handbook For Employers Under Four Labour Codes

New Delhi, Feb 19 (KNN) The Ministry of Labour and Employment has released a ‘Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere)’ to assist establishments in understanding and meeting their statutory obligations under the reformed labour law framework.

Simplifying a Complex Compliance System

India’s labour law framework had grown increasingly complex, with multiple registrations, licences and returns under different laws, while evolving work patterns underscored the need for reform. 

In response, the Government merged 29 Central Labour Acts into four Labour Codes, streamlining 1,228 sections into 480 and reducing rules, returns, forms and registers substantially. 

The new regime also introduces compounding of offences and improvement notices, marking a shift toward a more facilitative and less punitive compliance approach.

The handbook provides detailed guidance on the Code on Wages, 2019; Industrial Relations Code, 2020; Occupational Safety, Health and Working Conditions Code, 2020; Code on Social Security, 2020. It also includes a summary of action points for employers to facilitate smoother implementation.

Key Features of the Codes

The Code on Wages, 2019 amalgamates four wage- and payment-related laws, aiming to balance workers’ rights with ease of compliance for employers. It introduces reforms to rationalise and strengthen wage regulation.

The Industrial Relations Code, 2020 consolidates provisions relating to trade unions, conditions of employment in industrial establishments and mechanisms for investigation and settlement of industrial disputes.

The Occupational Safety, Health and Working Conditions Code, 2020 consolidates 13 Central labour laws into a single framework, enhancing transparency, worker welfare and ease of doing business through single registration, an all-India licence, e-filings and time-bound approvals. It covers factories, mines, plantations, construction, motor transport and other establishments with 10 or more workers.

The Code on Social Security, 2020 subsumes nine labour laws and provides for social security coverage relating to EPFO, ESIC, gratuity, maternity benefit, employee compensation and cess for building and other construction workers. It also extends social security provisions to unorganised workers, gig workers and platform workers.

The Ministry stated that the handbook is intended to serve as a practical guide to help employers navigate the new compliance landscape under the four Labour Codes.

(KNN Bureau)