Labour and employment lawyers for workers and employers

Law

Four Labour Codes, in force 21 Nov 2025

Replaced

29 central labour laws

Forums

Conciliation officer, authority, Industrial Tribunal

Harassment law

POSH Act 2013, committee for 10+ employees

The four Labour Codes in plain terms

The Codes did not invent new rights so much as reorganise old ones, with some important changes in definitions and thresholds. The central rules and the rules of each state are still being finalised and amended, so the precise thresholds and forms should be checked for your state at the time of action.

Two changes affect almost every employer. First, there is now a uniform definition of wages: if allowances excluded from wages exceed half of total remuneration, the excess is added back, which can raise PF, gratuity and other contributions calculated on wages. Second, fixed-term employees are entitled to the same benefits as permanent staff in the same work, including gratuity on a pro rata basis after one year.

Wrongful termination and retrenchment

Whether an employee can challenge a dismissal depends first on whether they are a worker under the Industrial Relations Code. Workers doing manual, technical, operational or clerical work are covered; people employed mainly in managerial or administrative roles, and supervisors above the wage limit set by the Code, are not. Workers can raise an industrial dispute; others usually rely on their contract and a civil suit for damages.

For workers, the key protections are:

• Retrenchment of a worker with at least one year of continuous service needs one month's written notice (or wages in lieu) and compensation of 15 days' average pay for every completed year of service. The Code also requires the employer to contribute to a worker re-skilling fund for retrenched workers.
• Lay-off, retrenchment and closure in larger industrial establishments need prior government permission. The Code raised the threshold for this from 100 to 300 workers, and states may vary it.
• Dismissal for misconduct must follow the standing orders and a fair domestic inquiry with a charge sheet, a chance to reply and a reasoned finding. A dismissal without inquiry is often set aside or converted into compensation.
• On dismissal, removal, retrenchment or resignation, wages due must be paid within two working days under the Code on Wages.

A dispute starts before the conciliation officer. If conciliation fails, or a set period passes without settlement, an individual worker can take the dispute to the Industrial Tribunal. Time limits apply, so the claim should be raised within weeks of termination, not years.

Unpaid wages, gratuity and other dues

Most claims we handle are about money: salary withheld after resignation, full and final settlement delayed for months, illegal deductions, unpaid bonus or gratuity refused on a technicality.

• Wage claims under the Code on Wages go to the authority appointed by the government, which can order payment of the difference with compensation. Claims should be filed within three years.
• Gratuity is payable at 15 days' wages for each completed year of service, normally after five years of continuous service, but without that condition on death or disablement, and after one year for fixed-term employees. It is subject to a ceiling notified by the Central Government. If the employer refuses, the controlling authority can determine the amount and order payment with interest.
• Provident fund and ESI defaults are taken up with the EPFO and ESIC, which have their own recovery powers. Employers needing registration can see our pages on PF registration and ESI registration.

Many disputes end with a firm demand. A properly drafted legal notice setting out the dues, the statutory basis and the forum you will approach often produces payment without litigation.

Sexual harassment at work: the POSH Act

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 is unaffected by the Codes. Every employer with 10 or more employees must constitute an Internal Committee, presided over by a senior woman employee and including an external member from an NGO or a person familiar with the issue. Where an employer has fewer than 10 employees, or the complaint is against the employer, it goes to the Local Committee set up by the District Officer.

A complaint must usually be made within three months of the incident, extendable by a further three months. The inquiry is to be completed within 90 days. Employers must also adopt a written policy, display the committee details, conduct awareness sessions and report in their annual report. Failure to constitute the committee can attract a fine of up to ₹50,000, with higher consequences on repetition. We act for complainants, for respondents and for companies setting up or training their committees.

What employers should do under the Codes

For businesses, the Codes are mainly a compliance project. The steps we usually work through are:

1. Re-check the salary structure against the new definition of wages and work out the effect on PF, gratuity and leave encashment costs.
2. Update appointment letters, especially for fixed-term and contract staff, and confirm issue of appointment letters where the OSH Code requires them.
3. Review standing orders or service rules, the disciplinary procedure and the notice and severance clauses.
4. Review registrations, licences and returns, many of which move to common online filings under the Codes.
5. Confirm the POSH committee, policy and annual report are in place.

Restrictive clauses also need care. A post-employment non-compete in an employment contract is generally void under section 27 of the Indian Contract Act, though confidentiality and non-solicitation clauses can be enforced. Our contract lawyers draft employment agreements that will hold up.

Common mistakes in employment disputes

• Employees resigning under pressure. A forced resignation is hard to undo. Put objections in writing before signing anything.
• Waiting too long. Delay weakens reinstatement claims even where the law allows a late claim.
• Employers skipping the inquiry. Terminating for misconduct without a charge sheet and hearing is the most common reason dismissals fail.
• No written record. Salary slips, bank statements, emails and attendance records decide most wage and gratuity cases.

Documents you need

Bring whatever you have. Missing papers can often be obtained from the employer or the EPFO portal later.

• Appointment letter and any later increment or promotion letters
• Termination, suspension or resignation letter and related emails
• Salary slips and bank statements for the last 12 months
• PF and ESI numbers (UAN and IP number)
• Attendance records, ID card or other proof of service
• Charge sheet, inquiry notice and inquiry report, if any
• For employers: current salary structure, standing orders and policies

How we handle it for you

1. Assess your status and claim

   We confirm whether you are a worker under the Codes and which forum and time limit apply.

2. Calculate the dues

   We work out wages, notice pay, retrenchment compensation and gratuity from your records.

3. Send a demand

   A reasoned legal notice goes to the employer, which often leads to settlement.

4. File before the right forum

   Conciliation officer, wage or gratuity authority, Industrial Tribunal or civil court, as the case requires.

5. Settle or argue

   We negotiate a written settlement or present evidence and arguments until the order is made and paid.

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