GC Vineet Vij at Tech Mahindra, Shares Insights on India’s Labour Reform
Vineet Vij, Group General Counsel at Tech Mahindra, has shared insights on the launch of the new Labour Codes, which have now replaced decades-old employment laws, many from the British era. The Codes have been in development for several years, and their enforcement begins immediately, marking a significant shift in India’s labour and employment landscape.
India’s Labour Landscape Transformed: A New Era Begins
India has entered a pivotal phase of labour reform with the operationalization of 4 consolidated Labour Codes. By replacing 29 laws with a unified and contemporary framework, the Codes mark a decisive shift towards regulatory clarity, compliance efficiency, and workforce modernization.
As the new regime takes effect, organisations must recalibrate systems, controls, and documentation for a structured, future-ready compliance environment:
- Establishment Registration & Licensing
Register eligible establishments as per revised thresholds
Assess need for a common license for contractors or multi-state operations
Verify contractor licenses & statutory registrations
- Appointment Letters & Worker Documentation
Issue formal appointment letters across all worker categories, including FTE & contract labour
Provide experience certificates at separation
Maintain Code-prescribed records, ideally in digital form
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Wage Structuring & Payment Compliance
Restructure compensation in line with the revised statutory definition of “wages”
Strengthen payroll processes for wage timelines and F&F settlement
Monitor contractor wage payments to mitigate principal-employer exposure
- Social Security Obligations
Reassess PF, ESI, gratuity & related contributions under the new wage construct
Extend social security to gig, platform & fixed-term workers where applicable
Aggregators to evaluate obligation towards the Social Security Fund
- Health, Safety & Welfare Standards
Provide mandated welfare facilities where thresholds apply
Maintain safety notices, registers & incident records
Comply with emergency directives issued by authorities
- Working Conditions & Leave Governance
Align working hours, overtime limits, weekly rests & leave framework
Implement robust attendance, overtime & leave tracking systems
- Industrial Relations & Workforce Governance
Reconstitute the Grievance Redressal Committee with required representation, including women members
Assess applicability of Standing Orders & secure certification where needed
Comply with notice requirements on strikes, lockouts & changes in service conditions
- Separation, Retrenchment & Reskilling Duties
Follow statutory processes for retrenchment, lay-off & closure
Contribute 15 days’ wages per retrenched worker to Re-Skilling Fund
Ensure timely, compliant exit settlements
- Contractor Oversight & Principal Employer Duties
Conduct periodic or risk-based contractor compliance audits
Maintain Code-prescribed registers & documentation
Provide welfare amenities where obligations shift to the Principal employer
- Digital Registers & Unified Returns
Transition to electronic registers & consolidated digital returns
Ensure punctual submission of annual & periodic filings
Conclusion
The implementation of the consolidated Labour Codes represents a transformative step for India’s workforce governance. Organisations that proactively align with these regulations will not only ensure legal compliance but also foster a modern, efficient, and sustainable working environment, paving the way for a stronger, future-ready labour landscape.
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