Frequently asked

Indian Labour Codes,
answered.

Common questions about EPF, ESI, Gratuity, Contract Labour, POSH, Standing Orders and how cmplihr.ai works. For anything specific to your organisation, the AI Assistant below can dig deeper.

Can't find your question?

Click the violet cmplihr.ai Assistant button in the bottom-right of any page. It's trained on the Codes, Central Rules and FAQs and can answer your specific scenario — and even raise a ticket if you want to track it.

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The four Labour Codes

+What are the four new Indian Labour Codes?

The Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety Health and Working Conditions Code 2020 — together they consolidate 29 central labour Acts. Central Rules for each were notified between 2021 and 2026; state rules vary.

+Have the Codes come fully into force?

Sections of the Codes have come into force in stages — the Central Rules are mostly notified, but several states are still finalising their state rules. Many employers operate under a mixed regime where some obligations come from the new Codes and some still from the older Acts.

+Which Acts do the Codes replace?

CoW 2019 replaces Payment of Wages, Minimum Wages, Payment of Bonus and Equal Remuneration. IRC 2020 replaces Trade Unions, Industrial Employment (Standing Orders) and Industrial Disputes. CoSS 2020 replaces EPF, ESI, Maternity Benefit, Gratuity, Employee's Compensation, BOCW and a few others. OSHW Code 2020 replaces the Factories, Mines, Plantations, Contract Labour, Inter-State Migrant Workmen and 9 more.

Applicability thresholds

+When does EPF apply?

EPF applicability triggers at 20 or more employees in establishments engaged in a scheduled industry. Employees earning ≤ ₹15,000 in basic wages are mandatorily covered; voluntary coverage above. Contribution: 12% employee + 12% employer, with admin charges.

+When does ESI apply?

ESI applies to establishments with 10 or more employees (20+ in some states) in covered areas. Employees with monthly wages up to ₹21,000 (₹25,000 for persons with disability) are covered. Contribution: 0.75% employee + 3.25% employer.

+When is a Contract Labour Licence required?

Under Chapter XI of the OSHW Code 2020, any contractor supplying 50 or more contract workers requires a Contract Labour Licence from the appropriate Government. Principal employers must register if they engage 10 or more contract workers and verify their contractors hold valid licences.

+Who is eligible for Gratuity?

Employees in establishments with 10 or more workers become eligible for Gratuity after 5 years of continuous service. Fixed-term employees become eligible on a pro-rata basis after 1 year of service under the new Code. Calculation: (last drawn wages × 15 × years of service) / 26.

+When do Standing Orders apply?

Under IR Code 2020, employers with 300 or more workers in an industrial establishment must adopt Standing Orders (notified threshold; some states still use the older 100-worker trigger). Until they're certified, the Model Standing Orders apply.

+Does POSH Act apply to my organisation?

The POSH Act 2013 applies to every workplace with 10 or more employees regardless of sector. You must constitute an Internal Committee (IC), display the policy prominently, train employees, and file an annual return.

Day-to-day compliance

+What are statutory registers I must maintain?

Under the Codes' Central Rules: Form-T (combined wage register / muster roll / loan/advances register), Form-O (overtime), Form-K (leave register), and Form-V (deductions). The single integrated Form-T has replaced several legacy registers under the Code on Wages.

+What is the bonus eligibility threshold?

Employees earning up to ₹21,000 per month (basic + DA) are entitled to statutory bonus under the Code on Wages 2019. Minimum bonus is 8.33%; maximum is 20% of wages, calculated on whichever is lower of (₹7,000 / minimum wage / actual wage).

+How does Minimum Wage work under the new Code?

The Centre notifies a 'Floor Wage' — states cannot set minimum wages below this floor. Each state then notifies state-level minimum wages by skill category (unskilled, semi-skilled, skilled, highly-skilled) and by area (zones A/B/C/D). Revised at least every 5 years.

+What's the maximum overtime under OSHW Code?

Working hours: 8 per day, 48 per week. Overtime is permitted up to 125 hours per quarter (subject to state rules), paid at twice the ordinary rate of wages. The total spread-over including rest cannot exceed 12 hours.

Social security & welfare

+Are gig and platform workers covered?

Yes — CoSS 2020 introduces a Social Security Fund for gig and platform workers (Sections 109, 113-114). Aggregators contribute 1-2% of annual turnover, capped at 5% of payouts. Schemes include life/disability cover, health/maternity benefits, accident insurance and old-age protection.

+When is a Crèche facility mandatory?

Establishments with 50 or more employees must provide a crèche (separately or jointly) under CoSS 2020 (subsuming the Maternity Benefit Act). Distance, supervision, training and food standards are prescribed.

+What is the Re-skilling Fund?

Under IR Code 2020, employers who retrench a worker must contribute 15 days' wages per retrenched worker to a Re-skilling Fund administered by the appropriate Government. The fund is disbursed to retrenched workers within 45 days.

Using cmplihr.ai

+Is cmplihr.ai a substitute for a labour-law advisor?

No. cmplihr.ai is informational software grounded in the official Codes, Rules and FAQs. Every gap report and notice draft is meant to accelerate your team, not replace the binding interpretation of a qualified labour-law advisor or solicitor. Use it to surface issues and prepare drafts — confirm with your advisor before acting.

+How does the AI know about my organisation?

When you onboard, you tell cmplihr.ai about your branches, workforce, payroll structure and contractor usage. The Threshold Engine maps these to applicable Acts per branch. You can also upload your own policies, licences and registers — they're indexed into a project-scoped knowledge base that only your tenant can query.

+Is my data secure?

Yes. Each organisation gets a project-scoped knowledge base — your evidence and answers never appear in another tenant's retrieval. AES-256 at rest. Aligned to ISO 27001 controls and SOC 2 Type II framework. Every state change is captured in an immutable audit log. DPDP Act 2023 compliant.

+Can my employees use cmplihr.ai directly?

Yes — employees can use the AI Assistant on every page to ask labour-law questions or raise tickets. Roles are scoped: Employees see HelpDesk only by default; Compliance Managers see all operational modules; Super Admins see everything. You can override per member.

+What if cmplihr.ai doesn't know the answer?

The AI Assistant first checks the indexed Code / Rule / FAQ corpus + your organisation's own evidence. If those don't cover the question, it falls back to general knowledge of Indian labour law. It will tell you when it's drawing on general knowledge so you can verify with an advisor.

+Can I export everything?

Yes — assessments, gap reports, notice drafts, vendor records and the audit log are all exportable (CSV / PDF). On cancellation, data export is available for 30 days before purge.

Your question, answered for your branch.

The general FAQs above are a starting point. For applicability to your branches, your headcount, your contractors — open the cmplihr.ai Assistant in the bottom-right corner. It's grounded in the same Codes and Rules, and will tailor its answer to your situation.

Informational only · not legal advice