Labour Law Compliance Checklist for Indian Employers

For most employers, labour law compliance in Jaipur comes down to three things. Follow the four Labour Codes, follow Rajasthan's state rules, and keep your wages, PF and ESI records right. Once your business has ten or more people, more rules switch on, so check your headcount first.

The four Labour Codes came into force on 21 November 2025, and state rules are still arriving. This labour law compliance checklist shows what applies to you, what to do and which records to keep. It also tells you which items apply to everyone and which apply only in certain cases.

Labour Codes in 2026: What is in Force in India

Here is the short version.

• The Code on Wages, the Industrial Relations Code, the Code on Social Security and the OSH Code came into force on 21 November 2025. They replace 29 central labour laws, as the Ministry of Labour's press release explains.
• Central Rules under all four Codes were notified on 8 May 2026. They apply directly where the Central Government is the "appropriate government".
• Until new rules replace them, older rules stay in force to the extent they match the Codes, according to the Ministry's FAQs.

Most Jaipur employers follow state rules, so Rajasthan's progress matters most. This is where it stands:

This status was checked on 22 October 2026. Look at the Rajasthan Labour Department portal for updates before you act.

Which Rules Apply to You?

Start with one question. Who is your "appropriate government"? For most private offices, shops and small units in Jaipur, it is the State Government of Rajasthan. For some sectors, such as railways, banks and mines, it is the Central Government.

Then look at the laws that sit around the Codes:

• The Codes: They now cover wages, industrial relations, safety, and social security such as EPF, ESI, gratuity and maternity benefit. PoSH stays under its own Act.
• The Rajasthan Shops and Commercial Establishments Act, 1958: It covers shops, offices, hotels and restaurants. It deals with registration, working hours and leave. Registration is online through the Labour Department portal, so check the current time limit there.
• Small establishments: In August 2025, Rajasthan exempted establishments with up to 10 workers from registering under this Act. That exemption is about registration only. Wages, records, safety and other duties still apply. Confirm the exact wording on the Labour Department portal before you rely on it.

Quick Start by Employer Size

Headcount is only a starting point. Different laws count different people, so treat this as a first-week list, not a final answer.

Under 10 workers

• Check whether your establishment needs registration under the Rajasthan Shops Act, given the 2025 exemption.
• Pay at least the minimum wage for your category, on time.
• Issue appointment letters and wage slips.
• For PoSH complaints, know that workplaces with fewer than ten employees use the district Local Committee.

10 to 19 workers

• Check whether ESI applies to you.
• Check OSH registration, which has a 60-day window once it applies.
• Check gratuity and maternity benefit coverage.
• Set up a PoSH Internal Committee.

20 to 49 workers

• Check EPF coverage.
• If you run an industrial establishment, set up a grievance redressal committee.
• If you use contractors, start counting contract workers.

50 workers and above

• Check crèche rules.
• Check contract labour licence rules once you reach 50 contract workers.
• Watch the 300-worker mark for standing orders.

Which Law Applies at 10, 20, 50 and 300 Workers? 

Each number below belongs to a different law, and each law counts people in its own way. Read the second column carefully.

These figures come from the Ministry of Labour's compliance handbook for employers. The handbook covers the Central Government sphere and was written before the 2026 rules were notified. For forms, time limits and state details, check the Central and Rajasthan rules.

Labour Law Compliance Checklist for Indian employers (Image)

Use this as your HR statutory compliance checklist. Each part has a tag. "Applies to everyone" means every employer should check it. ‘Applies if’ means it depends on your size or business. State rules can add forms and limits, so check Rajasthan's rules for the details. Businesses needing professional HR compliance services can also seek expert support to review their compliance requirements.

Wages and salary structure (applies to everyone)

• Pay at least the minimum wage for your state and employee category.
• Pay monthly wages before the seventh day of the next month.
• Pay all dues within two working days when someone resigns or is removed.
• Issue a wage slip on or before payment.
• Make only deductions the law allows, and keep them within 50% of wages in a wage period.
• Pay equal wages for the same or similar work, whatever the gender.
• Check whether statutory bonus applies to your employees.

Now the 50% wage rule, in plain words. "Wages" means basic pay, dearness allowance and retaining allowance. If other allowances go above half of total pay, the extra amount is added back to wages for PF, gratuity and other statutory calculations.

Here is a simple example. Total pay is ₹60,000. Basic pay and dearness allowance are ₹25,000, and allowances are ₹35,000. Half of total pay is ₹30,000, so ₹5,000 is added back. Wages for statutory purposes become ₹30,000. This does not mean basic pay must equal 50% of CTC. The Ministry's FAQs on the Labour Codes give an official illustration.

Hiring and records (applies to everyone)

• Give every employee an appointment letter.
• Keep an attendance register cum muster roll, a wage register, an overtime register and a register of fines and deductions. They can be electronic, and the Ministry's handbook says to keep them for five years.
• Display the minimum wage rates, normal working hours, wage period, payment date and the Inspector-cum-Facilitator's name and address. The handbook asks for English, Hindi and the local language.

Hours, leave and overtime (applies to everyone, details vary by state)

• Follow the daily and weekly hour limits in your state rules.
• Pay overtime at least twice the normal wage rate where the law covers the employee.
• Women can work in all establishments. For work before 6 a.m. or after 7 p.m., get their consent and arrange the safety measures the rules require.

Social security (applies if you cross the thresholds)

• EPF: It applies to establishments with 20 or more employees. For due dates and current contribution rules, check the EPFO portal.
• ESI: It applies at 10 or more persons in covered establishments. The ESIC contribution page says contributions are due within 15 days of the end of each month.
• Gratuity: Most employees qualify after five years of continuous service. A fixed-term employee hired directly qualifies after one year. Pay it within 30 days of it becoming due. The Ministry's FAQs list the current cap as ₹20 lakh.
• Maternity benefit: Eligible women who worked at least 80 days in the last 12 months can get up to 26 weeks of benefit.

Safety and welfare (applies if the OSH Code covers you)

• Register the establishment within 60 days if you have 10 or more employees.
• Keep the workplace clean, ventilated and well lit, with safe drinking water and separate toilets.
• Provide welfare facilities such as first aid and washing areas. A canteen applies at 100 or more workers.
• Annual health check-ups apply to specified categories of employees. Check the rules before you assume they cover everyone.
• Report accidents and dangerous occurrences to the authorities within the time limits the rules set.

Contract labour and vendors (applies if you use contractors)

• The contract labour rules apply once you have 50 or more contract workers.
• A contractor with 50 or more workers needs a licence.
• The principal employer, which is you, must provide welfare facilities. If the contractor fails to pay wages, you may have to pay them.
• Keep the contractor's licence, worker lists and wage-payment proof on file.

Committees and PoSH (applies if you cross the thresholds)

• An industrial establishment with 20 or more workers needs a Grievance Redressal Committee. It should finish its proceedings within 30 days of receiving an application.
• PoSH is a separate law, not part of the four Codes. With 10 or more employees, you need an Internal Committee under the PoSH Act, 2013, along with a written policy and awareness sessions.

Records and Inspection Readiness

An inspector asks for proof, not promises. Keep one compliance file for each location, and make sure you can find things quickly. It should hold:

• Wage, attendance, overtime and deduction registers
• Wage slips and bank payment proof
• Appointment letters
• EPF and ESI challans and returns
• Registrations, licences and renewal dates
• Contractor licences, worker lists and payment proof
• PoSH and committee records
• Safety records and accident reports

The Codes also introduce measures such as compounding of offences and improvement notices, along with a single electronic annual return replacing multiple older returns, as described in the Ministry's guidance. However, businesses should not rely on these measures to avoid penalties. Professional HR compliance support can help employers identify compliance gaps, maintain accurate records and address issues early. Fix gaps promptly and keep the necessary evidence.

Compliance calendar

Turn your HR statutory compliance checklist into a calendar. Below are the dates we could confirm from official sources. For anything else, check the relevant portal.

Common mistakes and myths

• Myth: basic pay must be 50% of CTC. It doesn't. The rule only adds back allowances that go above 50% of total pay.
• Mistake: one policy for every state. Rules differ by state, so check each location.
• Mistake: assuming the contractor handles everything. If the contractor fails to pay wages, you may have to.
• Mistake: waiting for 20 workers. Many duties start at 10, and some apply from day one.
• Mistake: treating PoSH as part of the Codes. It has its own Act.
• Mistake: skipping appointment letters. The OSH Code asks for one for every employee.
• Mistake: trusting old articles. Rajasthan notified rules in June and August 2026. Check the date on anything you read.

How QBIZ HR can help

Qbiz HR Solutions is a Jaipur-based HR consulting firm. We started in 2022, and our team brings more than 25 years of combined experience. Labour rules change often, and many owners have little time to track them. Our HR compliance services help businesses manage labour law updates and statutory filings. We also run HR audits that show where your records have gaps. If you would like a second pair of eyes on your checklist, you are welcome to reach out.

Frequently asked questions

Q. Do the Labour Codes apply to small businesses in Jaipur?

Ans. Yes, but what applies depends on your size, your type of business and your appropriate government. Some duties, such as minimum wages, apply from day one.

Q. Do I need Shops Act registration with fewer than 10 workers?

Ans. Rajasthan exempted establishments with up to 10 workers from registering in August 2025. Other duties still apply. Confirm the notification on the Labour Department portal.

Q. What is the 50% wage rule?

Ans. If allowances go above half of total pay, the extra amount is added back to wages for statutory calculations. Basic pay does not have to be 50% of CTC.

Q. When must wages be paid?

Ans. Monthly wages are due before the seventh day of the next month. When someone leaves, pay all dues within two working days.

Q. When do EPF and ESI apply?

Ans. EPF applies to 20 or more employees. ESI applies at 10 or more persons in covered establishments, subject to the rules.

Q. Which Rajasthan rules are final?

Ans. Code on Wages (Rajasthan) Rules, 2026: final from 12 August 2026 (Notification S.O.40).

Rajasthan Industrial Relation Rules, 2026: final from 12 August 2026 (Notification S.O.41).

Rajasthan Occupational Safety, Health and Working Conditions Rules, 2026: final from 30 June 2026 (Notification S.O.23).

On 22 October 2026, the Wages, Industrial Relations and OSH rules were final. The Social Security rules were still in draft. Check the portal for updates.