- The four Codes rationalised 29 central labour laws, according to the PIB release on the Labour Codes.
- Final central rules followed on 8 May 2026, but most private employers answer to state rules, which are still being finalised.
- Maharashtra released draft rules in April 2026, and old state rules continue where they fit the Codes.
- State Shops and Establishments Acts were not replaced and run alongside the Codes.
On this page
Which labour laws switch on at which headcount?
Thresholds drive most of your checklist. Count carefully.
| Headcount | What switches on |
|---|---|
| 1+ | Appointment letter, wages before the 7th, wage slips, final wages within two working days |
| 10+ | POSH Internal Committee, OSH Code registration, ESI (20 in some states) |
| 20+ | EPF, Grievance Redressal Committee, Maharashtra Shops Act registration |
| 50+ | Crèche or crèche allowance, contract labour rules (counting contract workers) |
| 100+ | Works Committee |
| 300+ | Certified standing orders, prior permission for lay-off, retrenchment or closure in industrial establishments |
Each law counts differently. Some count only “workers”, while others count every employee, or every contract worker on any day of the past year. Under the IR Code, managers and supervisors earning over ₹18,000 a month are not “workers”, which shrinks some counts for a white-collar team.
Why is labour law compliance in India harder in 2026?
Two rulebooks run at once. The Labour Codes set central law, yet the state rules that bind most private employers, including in Pune, are not all final.
The Labour Ministry says old rules stay in force until new ones are notified, so far as they fit the Codes. L&S’s state-wise rules tracker shows the gap state by state.
Foreign employers often copy a home-country handbook. That fails fast.
India sets hours, leave, holidays and exit timing by statute, and state law adds its own layer. In Maharashtra, the Shops and Establishments Act fixes a 10-hour day, 8 casual leave days and 8 paid festival holidays.
Who owns labour law compliance under an EOR?
Your EOR owns it, because the law addresses the legal employer. It holds the registrations, constitutes the Internal Committee required by the POSH Act, keeps the registers and answers inspectors.
You still shape the risk, though. Daily decisions sit with you. Your managers set working hours and handle performance, so they need to know the 48-hour weekly cap and the exit rules.
Our guides to labour laws in India and EOR compliance with local employment laws go deeper on each layer.
How does Remunance keep your India team on the right side of labour law?
Remunance runs the employer side for every team it employs: Shops and Establishments registration, POSH policy and annual filing, leave administration, maternity benefit and full and final settlement. For companies that already employ through their own entity, compliance management covers the same ground. We answer client queries within 2 working days, so request a labour law health check.
What else do people ask about labour law compliance in India?
What is a labour compliance checklist?
A dated list of every registration, register, return and payment your Indian establishment owes. Build it by headcount first, then by state, because both move the list.
Do the Labour Codes apply to IT companies?
Yes. The Codes cover every sector and every size of business, from a five-person product team to a large delivery centre. Standing orders and lay-off permission bite only above set worker counts or in industrial establishments.
What if your state has not finalised its Labour Code rules?
You follow the Codes plus the existing state rules that are consistent with them. Wider statutory compliance such as PF, ESI and TDS carries on unchanged.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.