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When did India's labour law change?
The four labour codes took effect on 21 November 2025 and the 29 earlier laws were repealed. The central rules were notified on 8 May 2026.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗Does our factory follow central or state rules?
Unless you're under central jurisdiction, such as railways, mines, ports, telecoms or banks, most factories and commercial premises follow the rules of their state government. Check separately whether your state has notified them.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗Has every state issued its rules?
As of May 2026, Maharashtra, Gujarat and Karnataka had notified most of their rules under the four codes, while some, such as West Bengal, still had parts outstanding. We check the latest notifications for each of your sites.
Basis: iPleaders · 2026-05-08 ↗Can we keep using our existing work rules?
The definition of wages, working hours and dismissal procedures have changed, so old rules may conflict. We recommend reviewing them against the new codes and the model standing orders.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗What are the central model standing orders for?
Industrial establishments with 300+ workers must have standing orders, and in May 2026 the central government published models for manufacturing, services and mining that you can draft from.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗What is the '50% wage rule'?
If excluded items such as HRA, overtime and commission add up to more than 50% of total pay, the excess is treated as wages. That raises the base for gratuity, PF and overtime.
Basis: Shiftee · 2026-10-05 ↗From how many employees does PF apply?
Generally workplaces with 20 or more employees must register, within 15 days of crossing the threshold. Once covered, it keeps applying even if headcount falls.
Basis: CalcGuru · 2026-08 ↗Has the PF ceiling changed?
Yes. From 17 September 2026 it rose from ₹15,000 to ₹25,000 a month. The 12% rate is unchanged.
Basis: Keka · 2026-09-17 ↗How do we calculate PF for September wages?
According to the EPFO FAQ, apply the ₹15,000 ceiling for 1–16 September and ₹25,000 for 17–30 September, pro rata by days, and pay in a single ECR.
Basis: SGCMS · 2026-09-24 ↗Who is covered by ESIC?
Staff earning ₹21,000 a month or less at workplaces with 10 or more employees (20 in some states). The employee pays 0.75% and the employer 3.25%; the ESIC threshold didn't change with the PF ceiling.
Basis: SGCMS · 2026-09-24 ↗What if we pay PF or ESIC late?
Late PF draws 12% a year interest plus damages of 1% a month (capped at 100% of arrears); late ESIC draws 12% a year interest plus 5–25% damages. Both are due by the 15th of each month.
Basis: CalcGuru · 2026-08 ↗By when must salaries be paid?
Monthly salaries must be paid before the end of the 7th of the following month, and the pay period can't exceed one month.
Basis: Shiftee · 2026-10-05 ↗What is professional tax (PT)?
A state tax of up to ₹2,500 per person a year. Slabs and payment cycles differ by state, so you register in each state where you have a site.
Basis: Petpooja · 2026-05 ↗Is there a statutory bonus?
Yes, 8.33%–20% depending on profit and production. The eligible wage range depends on the state rules.
Basis: Sidae Ilbo · 2025-04-22 ↗Do we have to have employment contracts?
Every employer must give a written appointment letter in the prescribed form on hiring. It covers wages, grade, working conditions and social security coverage.
Basis: Shiftee · 2026-10-05 ↗Is there no gratuity for fixed-term hires?
If they work 1 year or more on the contract, you pay pro-rata gratuity. Contracts under a year, such as 11-month contracts, don't qualify.
Basis: King Stubb & Kasiva · 2026 ↗What is the minimum wage in India?
There's no single national rate; it varies by state, area, job and skill level. For example, unskilled workers in Delhi get ₹18,456 a month (notified April 2025) and in Karnataka ₹19,319–23,376 (22 May 2026).
Basis: Shiftee · 2026-10-05 ↗Is it a problem to use many outsourced (contract) workers?
With 50+ in the past 12 months you may need registration and a licence, and their use in core activities may be restricted. If a subcontractor doesn't pay wages within 7 days, the principal employer may have to.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗Can women work night shifts?
Yes. With her consent and safety and transport arrangements, women can work between 7 pm and 6 am in every sector.
Basis: Shiftee · 2026-10-05 ↗What are the working-hour limits?
The standard is 8 hours a day and 48 a week; overtime needs the worker's consent and pays twice the ordinary wage.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗Do we need government permission to dismiss staff?
Factories, mines, plantations and similar units averaging 300+ workers over the past 12 months need prior permission for lay-off, retrenchment or closure. Smaller units don't need permission but must still meet notice and compensation rules.
Basis: Shiftee · 2026-10-05 ↗How much is retrenchment compensation?
15 days' average pay per year of service. On top of that, you pay 15 days per worker into the reskilling fund.
Basis: factoHR · 2026 checked ↗How is gratuity calculated?
Last wage × 15/26 × years of service. Five years' service is the general rule, and the cap is ₹20 lakh.
Basis: Kredily · 2026 checked ↗What's the deadline to settle leavers?
Whatever the reason, resignation, dismissal or retrenchment, wages must be settled within 2 working days of the last day.
Basis: Shiftee · 2026-10-05 ↗Is the end of a fixed-term contract retrenchment?
Termination on expiry of the contract is not treated as retrenchment. Contracts that are renewed again and again need a separate review, though.
Basis: factoHR · 2026 checked ↗How much notice do we need to close a factory?
Smaller units give 60 days' notice; units with 300+ must apply for permission 90 days ahead.
Basis: factoHR · 2026 checked ↗What are the conditions for an expat employment visa?
Annual pay above US$25,000, a skilled role, and sponsorship by a company registered in India.
Basis: India Law Offices · 2026-10-13 ↗Can we work on a business visa?
No. Working for an Indian company, drawing a salary or carrying out a project all require an employment visa.
Basis: India Law Offices · 2026-10-13 ↗When do we register with the FRRO?
If you enter on an employment visa longer than 180 days, register within 14 days of arrival.
Basis: RemotePass · 2026 checked ↗Do Korean expats pay Indian PF too?
If a Korean company seconded them for up to 5 years, they can be exempted by submitting the National Pension certificate of coverage to EPFO. Without it, they pay 12% of actual pay with no ceiling.
Basis: National Pension Service (Korea) · 2026-10-20 checked ↗Who applies for the certificate of coverage?
The Korean company (employer) applies to the National Pension Service, attaching the secondment order and other papers.
Basis: National Pension Service (Korea) · 2026-10-20 checked ↗What do we do if a union forms?
14 days' strike notice is mandatory, and strikes are banned during conciliation and for 7 days after. It matters to set up channels for dialogue, such as a Grievance Redressal Committee, first.
Basis: Shiftee · 2026-10-05 ↗From how many staff is a POSH committee needed?
Workplaces with 10 or more employees (per office and branch) set up an Internal Committee. Below 10, complaints go to the Local Committee.
Basis: IncorpX · 2026 ↗What if we don't comply with POSH?
Failing to form a committee or file the annual report can cost up to ₹50,000, and a repeat can double the fine and cancel the licence.
Basis: IncorpX · 2026 ↗How long is maternity leave?
Up to 26 weeks, of which up to 8 weeks can be taken before the expected delivery date.
Basis: Shiftee · 2026-10-05 ↗From how many staff is a Grievance Redressal Committee needed?
Industrial establishments with 20 or more workers, with equal numbers of employer and worker representatives.
Basis: Bae, Kim & Lee (BKL) · 2026-06-04 ↗When should legal due diligence be done?
Before major decisions such as M&A, joint ventures or technology agreements. It's a formal report issued by a qualified Indian advocate or CS.
Basis: Adullam Consulting · 2026-10-20 checked ↗Can directors be punished personally for company matters?
Yes, some provisions target individuals: unpaid TDS (up to 7 years), arrest powers for GST evasion over ₹5 crore, and late commencement-of-business filing (₹1,000 a day per director).
Basis: Adullam Consulting · 2026-10-03 ↗Are directors at the head office in Korea liable too?
Some provisions turn on whether you are on the register, so it's safer to assume living abroad is no defence.
Basis: Adullam Consulting · 2026-10-03 ↗How long does an HR policy take?
Adullam runs it in 8 steps, from draft to advocate signature. Expect about 4–6 weeks depending on size (example).
Basis: Adullam Consulting · 2026-10-20 checked ↗AI answers are based on information researched by Adullam. For important legal, tax, HR and other decisions, please always confirm with a specialist.
Questions and answers are kept for 90 days and are sent to an AI provider outside Korea (Anthropic, USA) to generate answers. Please do not enter personal details such as names or phone numbers. Privacy Policy