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Labour Codes Transition Advisory
The Labour Codes replace a patchwork of older laws. Some changes affect every employer immediately; others depend on rules, notifications and portal changes that are still being rolled out. We help you separate the two and act on what applies now.
Changes employers should act on
| Area | What changes under the Codes |
|---|---|
| Appointment letters | Mandatory for all workers |
| Minimum and timely wages | Statutory minimum wage for all workers and mandatory timely payment |
| Fixed-term employees | Benefits equal to permanent workers; gratuity after one year of continuous service |
| Health check-ups | Free annual health check-up for workers above 40 years of age |
| ESIC coverage | Extended pan-India; voluntary for establishments with fewer than 10 employees and mandatory where even one employee is in a hazardous process |
| Women workers | Permitted to work at night and in all types of work, with consent and required safety measures |
| Compliance | Single registration, a pan-India single licence and a single return in place of multiple filings |
| Gig and platform workers | Aggregators contribute 1–2% of annual turnover, capped at 5% of amounts paid to these workers |
Source: PIB release (21.11.2025)
Transition action points
- 1
Review the wage structure
Check how allowances are treated under the uniform wage definition; it affects PF, gratuity and bonus costs.
- 2
Update documents
Appointment letters, standing orders where applicable, registers and policies aligned to the Codes and UP rules.
- 3
Map registrations and returns
Move from old registrations to the new single registration and return as the portals allow.
- 4
Budget the cost
Fixed-term gratuity, health check-ups and any ESI extension built into the year's budget.
Some provisions depend on rules and notifications. Our summary follows the central announcement; confirm the operative provisions and dates for your state and category before acting.
Prefer to talk it through?
Request a call, WhatsApp call or office meeting in Lucknow at a time that suits you. A Chartered Accountant will confirm the slot.