- The four Labour Codes replaced 29 central labour laws on 21 November 2025.
- An appointment letter is compulsory for every employee at the hiring stage.
- Wages are due before the 7th of the following month during employment.
- Final wages are due within two working days of the exit.
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What are the employee life cycle stages in India?
Most HR teams use six, and Indian law touches every one of them.
| Stage | What happens | India checkpoint (2026) |
|---|---|---|
| 1. Attract and recruit | Job brief, sourcing, offer | Background checks need a lawful basis under the DPDP Act |
| 2. Onboard | Joining, registrations, induction | Appointment letter under the OSH Code, UAN, ESI |
| 3. Pay and develop | Monthly payroll, training | 50% wage rule sets the PF and gratuity base |
| 4. Appraise and reward | Reviews, raises, bonus | Statutory bonus of 8.33% to 20% for eligible staff |
| 5. Retain | Leave, benefits, engagement | Annual leave after 180 days worked under the OSH Code |
| 6. Exit | Notice, handover, F&F | Final wages within two working days |
Stages 1 and 6 carry the most legal risk. Stage 3 carries the most money.
Why does lifecycle management matter more after the Labour Codes?
Because a gap at one stage now surfaces as a breach at another. A missing appointment letter at joining weakens your position at exit. A leave balance nobody tracked turns up in the final settlement.
Take pay. Suppose a salary of ₹1,00,000 a month has basic of ₹35,000 and ₹65,000 in excluded allowances. Half the pay is ₹50,000, so ₹15,000 is added back and “wages” become ₹50,000. That bigger base flows into PF, gratuity and the F&F months or years later.
The PIB release on the Labour Codes is the official summary of what changed for each group of workers.
So employee lifecycle management means one record per person across all six stages. An HRIS usually holds it.
Who owns each lifecycle stage under an EOR?
The work splits along one line: the EOR owns the employment, you own the job.
Under an employer of record model, the EOR runs onboarding, payroll, statutory filings, leave records and the offboarding paperwork. You run talent acquisition decisions, daily direction, goals and the performance appraisal itself.
Raises are shared. You decide the number. The EOR rebuilds the salary structure so it stays inside the 50% rule, then pays any arrears.
Exits are shared too. You decide. The EOR executes.
How does Remunance manage the employee lifecycle for your India team?
Remunance covers every stage through its own Indian entity, from recruitment and background checks to leave administration and full and final settlement. More than 1,200 Indian employees have been hired for clients across 34 cities this way. Our article on why effective HR services are key to a successful EOR team explains the split in practice. If you want one partner for all six stages, map your India team’s lifecycle with us.
What else do people ask about the employee lifecycle?
How many stages are in the employee lifecycle?
Five to seven, depending on the model. Six is common: recruit, onboard, pay and develop, appraise, retain and exit.
Is the employee lifecycle the same as the employee journey?
They overlap. The lifecycle is the employer’s process view of the stages, while the journey describes how the employee experiences them.
Which lifecycle stage is the most expensive to get wrong in India?
Usually the exit. Late final wages, a disputed deduction or a missing relieving letter can turn into a wage claim.
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.