Practice Area
Labour & Employment
Workplace rights and compliance
New Labour Codes consolidating 29 laws
EPF contribution rate (employer + employee)
Maximum gratuity payable
Employees triggers POSH Act applicability
Overview
Labour and employment law in India is undergoing a historic transformation with the consolidation of 29 central labour statutes into 4 comprehensive Labour Codes—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. While the implementation of these codes is progressing state by state, the existing legislation continues to govern employer-employee relationships across organized and unorganized sectors. At NyaySevak, our labour and employment practice provides strategic counsel to both employers and employees navigating this evolving regulatory landscape.
India's labour law framework is uniquely complex, with both central and state governments having concurrent jurisdiction over labour matters under the Constitution's Concurrent List. This results in a layered regulatory environment where employers must comply with central acts like the Factories Act, Industrial Disputes Act, and PF/ESI legislation, as well as state-specific Shops and Establishments Acts, rules under the Contract Labour Act, and local factory and building worker regulations. Our team has deep expertise in advising employers on compliance across multiple states and defending against regulatory enforcement actions.
For employees, we provide robust representation in wrongful termination disputes, wage theft claims, workplace harassment cases under the POSH Act, discrimination matters, and industrial disputes. We handle proceedings before Labour Courts, Industrial Tribunals, PF Appellate Tribunals, ESI Courts, and the Central/State Labour Commissioners. Our practice also covers proactive advisory services including employment policy drafting, POSH compliance (including ICC constitution and annual reporting), HR audit support, and collective bargaining negotiation.
Governing Framework
Key Legislation & Statutes
What We Offer
Our Labour & Employment Services
Employment Contracts & HR Policy Drafting
Drafting legally compliant employment contracts, offer letters, appointment letters, non-compete and non-solicitation agreements, confidentiality agreements, and comprehensive HR policies covering leave, discipline, grievance redressal, and termination procedures aligned with applicable labour laws.
Wrongful Termination & Retrenchment Cases
Representing employees in claims of illegal termination, retrenchment without compliance with Section 25F of the Industrial Disputes Act, and constructive dismissal. For employers, we ensure that termination processes comply with principles of natural justice and statutory requirements to minimize litigation risk.
Industrial Disputes Resolution
Handling disputes between employers and workmen/unions before Conciliation Officers, Labour Courts, and Industrial Tribunals. We manage issues including strikes and lockouts, unfair labour practices, standing orders certification, and reference of disputes to adjudicatory bodies.
PF, ESI & Gratuity Matters
Advisory and litigation support covering EPF registration, compliance audits, assessment disputes, and appeals before the EPFAT (Employees' Provident Fund Appellate Tribunal). We also handle ESI contribution disputes, gratuity calculation challenges, and claims under the Payment of Gratuity Act.
POSH Act Compliance
Comprehensive POSH Act compliance including constituting Internal Complaints Committees (ICC), drafting anti-sexual harassment policies, conducting awareness workshops, advising on complaint investigation procedures, preparing annual compliance reports (as mandated under Section 21), and representing parties in proceedings before the ICC or Local Complaints Committee.
Labour Law Advisory & Compliance Audits
Conducting multi-state labour law compliance audits covering registration requirements, record-keeping obligations, wage and hour compliance, social security contributions, contract labour management, and factory/establishment licensing. We provide detailed compliance gap reports with remediation roadmaps.
Jurisdictions
Relevant Courts & Forums
Quick Reference
Services at a Glance
Common Questions
Frequently Asked Questions
What are the new Labour Codes in India and when will they be implemented?
India has enacted four Labour Codes to consolidate 29 central labour laws: the Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020. The central government has published draft rules, and states are in the process of framing their own rules and notifying implementation dates. Key changes include a new definition of wages (affecting PF/ESI/gratuity calculations), a threshold of 300 workers for retrenchment without government permission, and fixed-term employment provisions.
What is the process for legal termination of an employee in India?
The process depends on whether the employee is classified as a 'workman' under the Industrial Disputes Act. For workmen, employers must follow Section 25F (one month's notice or pay, 15 days' wages per year of service as retrenchment compensation, and notice to the government). For managerial/supervisory employees, the employment contract terms govern. In both cases, principles of natural justice (show-cause notice, opportunity to be heard, reasoned order) must be followed to avoid claims of wrongful termination.
Is POSH compliance mandatory for all organizations in India?
Yes, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 applies to every workplace with 10 or more employees. Every such organization must constitute an Internal Complaints Committee (ICC) with a presiding officer who is a senior woman employee, file an annual report with the District Officer, and display information about the Act at conspicuous places. Non-compliance can result in a penalty of up to Rs. 50,000 and cancellation of business license for repeated violations.
How is gratuity calculated in India?
Under the Payment of Gratuity Act, 1972, an employee who has completed 5 years of continuous service is entitled to gratuity upon resignation, retirement, death, or disability. The formula is: (Last drawn salary x 15 x number of years of service) / 26, where salary includes basic pay and dearness allowance. The maximum gratuity payable is Rs. 20 lakhs (as per the 2018 amendment). For piece-rated employees, the calculation is based on average wages for the last 3 months.
What are the EPF contribution rates and compliance requirements?
Under the EPF Act, establishments with 20 or more employees must register with the EPFO. Both employer and employee contribute 12% of basic wages plus dearness allowance. The employer's contribution is split: 8.33% to the Employee Pension Scheme (EPS) and 3.67% to the EPF. Employers must file monthly ECR (Electronic Challan cum Return), maintain prescribed registers, and ensure timely payment by the 15th of the following month. Delayed payment attracts interest at 12% per annum and damages up to 100% of arrears.
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