Corporate practice

Employment & Labour

India’s four Labour Codes came into force on 21 November 2025, replacing 29 central labour laws. Most employers need to revisit their contracts, pay structures and policies.

Employment contracts and policies, compliance with the new Labour Codes, POSH, workforce restructuring and employee disputes.

The Labour Codes

One definition of wages. Allowances and other excluded components above 50% of total pay are added back to wages, which raises provident fund, gratuity and other contributions for many salary structures.
Appointment letters are compulsory for every employee.
Fixed-term employees get parity of pay and benefits and become eligible for gratuity after one year.
Gig and platform workers are brought within social security for the first time.
Thresholds: standing orders, and government permission for lay-offs, retrenchment and closure, apply to establishments with 300 or more workers.
Women may work night shifts with their consent and prescribed safeguards.

Central and State rules under the Codes are still being notified, so the detail varies by State. See our employer checklist.

Workplace policies

Every employer with ten or more employees must have an Internal Committee under the POSH Act, and the Supreme Court has directed strict compliance (Aureliano Fernandes v. State of Goa, 2023). We draft policies, train committees and advise on inquiries. We also draft handbooks, codes of conduct and confidentiality and invention-assignment terms, and advise on employee data under the DPDP Act, which allows personal data to be processed for employment purposes without consent in defined cases.

Exits and disputes

Terminations, separations and restructuring, garden leave and the limits on non-competes, and disputes before labour authorities and courts. Who is a “worker” matters: under the Industrial Relations Code, employees in a supervisory capacity earning more than ₹18,000 a month are not.

How we help

Employment contracts and handbooks
Labour Code compliance reviews
POSH policies, Internal Committees and inquiries
Fixed-term, gig and contractor models
Restructuring and terminations
Employee data and DPDP
Employment disputes

Key laws

Code on Wages, 2019
Industrial Relations Code, 2020
Code on Social Security, 2020
Occupational Safety, Health and Working Conditions Code, 2020
POSH Act, 2013

Frequently asked questions

Are the new Labour Codes in force in India?

Yes. The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025, replacing 29 central labour laws. Central and State rules are still being notified, so some details vary by State.

What is the 50% wage rule under the Labour Codes?

“Wages” excludes certain components, such as house rent allowance, conveyance and overtime. But if the excluded components together exceed 50% of total remuneration, the excess is added back to wages. Because wages are the base for provident fund, gratuity and other benefits, pay structures with a low basic salary may now cost more.

Does the POSH Act apply to small businesses?

Every employer with ten or more employees must constitute an Internal Committee. Complaints from smaller workplaces go to the Local Committee for the district. Every employer, whatever its size, must take steps to prevent sexual harassment at work.