New Labour Codes Compliance Checklist for Indian Startups 2026

Labour Codes Are Now Live—Are You Ready?

Indiaʼs four new Labour Codes are fully implemented in 2026, replacing 29 old laws with simplified but stricter rules. Startups face higher compliance burden: digital records, timely filings, and new employee rights. Non-compliance means fines up to ₹5 lakh or jail time for repeat violations.

This checklist helps startups stay compliant using HRMS automation.

1. Code on Wages 2019 Wages Code)

Key Requirements:

• Payslips must show basic, allowances, deductions, net pay clearly
• Overtime calculation: 1.5x for first 50 hours, 2x thereafter
• Minimum wages by state/industry—auto-update required

Checklist Items:

• [ ] Digital payslips generated monthly via HRMS
• [ ] Overtime auto-calculated and capped at 50 hours/quarter
• [ ] State minimum wage compliance alerts enabled

OxHRM Solution: Auto-payslips, overtime tracking, state wage compliance.

2. Code on Social Security 2020

Key Requirements:

• PF/ESI coverage expanded to contractual/gig workers
• Gratuity calculation simplified: 15 days salary per year
• Maternity benefits: 26 weeks paid leave

Checklist Items:

• [ ] PF/ESI auto-deducted for all workers above thresholds
• [ ] Gratuity liability tracked and accrued
• [ ] Maternity leave policy updated to 26 weeks

OxHRM Solution: Statutory deductions, gratuity calculator, leave compliance.

3. Industrial Relations Code 2020

Key Requirements:

• Grievance committees mandatory 1 rep per 100 employees)
• Contract labour: principal employer liability for wages
• Strike notice periods and standing orders registration

Checklist Items:

• [ ] Grievance committee formed and notified
• [ ] Contract worker wages monitored
• [ ] Standing orders registered 100+ employees)

OxHRM Solution: Employee grievance tracking, contractor management.

4. Occupational Safety, Health & Working Conditions Code 2020

Key Requirements:

• Annual health checkups for certain industries
• Working hours: 48/week max, 1 rest day
• Creche facilities for 50+ female employees

Checklist Items:

• [ ] Working hours tracked (max 9 hours/day)
• [ ] Weekly off compliance enforced
• [ ] Creche policy if applicable

OxHRM Solution: Attendance tracking with hours limits, weekly off compliance.

5. Universal Checklist: Digital Records & Filings

All Codes Require:

Monthly: Digital attendance, wage records, payslips
Quarterly: PF/ESI returns, overtime reports
Annual: Annual returns, audit-ready records

Actions:

• [ ] All records digital and timestamped
• [ ] Single-click statutory report generation
• [ ] Auto-reminders for filing deadlines

OxHRM Advantage: 100% digital records, compliance calendar, report exports.

Common Startup Compliance Traps And Fixes)

1. Thinking “Weʼre Small, Rules Donʼt Apply”
   Codes apply to 10+ employees. Fix: Use HRMS from day 1.

2. Manual Excel Records
    Courts demand digital, timestamped records. Fix: HRMS audit trails.

3. Missing Contractor Coverage
    Principal employer liable. Fix: Track all workers in HRMS.

4. State Variations Ignored
    Minimum wages, holidays vary. Fix: State-wise compliance engine.

How OxHRM Handles 90% of Labour Code Compliance Automatically

• Attendance: GPS/mobile/web tracking with hours limits
• Payroll: Statutory deductions, payslips, overtime auto-calculation
• Records: 100% digital, export-ready for audits
• Compliance Calendar: Filing reminders, report generation
• Contractor Tracking: Vendor and worker management

Conclusion: Compliance Isnʼt Optional—Itʼs Your Growth Enabler

Labour Codes 2026 make compliance harder but also level the playing field. Startups using HRMS automation stay compliant effortlessly while manual competitors face fines and chaos.