Labour Codes readiness for employers

Labour Codes readiness audit for employers in India

A scoped review for HR heads, plant heads and founders who want to know where each site stands under the four Labour Codes. HRBS checks your records, contractors and compliance dates site by site, then gives you a ranked list of gaps with an owner and a date for each fix.

Start with a free 30-minute call. We agree which sites, entities and contractors are in scope before any work begins.

Why check Labour Codes readiness now

The four Labour Codes came into force on 21 November 2025, and the final central rules followed in May 2026. State rules are rolling out at different speeds, so two sites in different states can follow different rules. Most employers find the gaps only when an inspector, an auditor or an investor asks for records.

  • Registers, returns and policies were often built for the older laws.
  • Appointment letters, wage structures and overtime records may need a second look.
  • Some duties for contract workers sit with you as the principal employer.
  • PF and ESI dates slip when nobody owns the calendar.
  • Which rules apply depends on the state, so each site has to be mapped first.

Rules and dates keep changing, so this page does not list every duty. For sources and dates, read our post on Labour Codes for employers and contract labour.

Labour Codes Readiness Audit review with HR and operations team

What the audit covers

Six areas we review across your India sites

Scope is agreed in writing, so you only pay for the sites and entities you want reviewed.

Applicability by site

We map each site, entity and workforce type to central or state rules and note which state rules have been notified.

Appointment letters and wage records

A sample of appointment letters, wage structures, fixed-term contracts and leave records.

Working time and overtime

Attendance, shift and overtime records compared with the working-time rules that apply to the site.

Contractor and vendor compliance

Contractor licences, wage proof, PF and ESI challans, bonus payments and the clauses in vendor agreements.

Registrations, registers and returns

Existing registrations, statutory registers, the return calendar and who owns each date.

PF and ESI calendar

Deposit dates, late-payment exposure and whether proof of payment is kept on file.

How the audit runs

A four-step Labour Codes audit

The same steps for a single plant or a group of locations, scaled to your scope.

1. Scope

Sites, entities and contractors

We list the sites, entities, headcount and contractors in scope and the documents we need.

2. Review

Documents and sample records

We review documents and a sample of records, on site or remotely as agreed.

3. Gap register

Ranked by exposure

Each gap is rated by exposure and linked to the rule it relates to, for your counsel to confirm.

4. Action plan

Owner, date and evidence

Each fix gets an owner, a date and the evidence to keep. We mark what HRBS can run, what your team keeps and where counsel should advise.

What you receive from the audit

You get working documents your team can act on, not a general report:

DeliverableWhat it is
Applicability mapEach site matched to central or state rules, with the state status noted
Gap registerEvery gap rated by exposure, with the records that show it
Contractor review summaryLicence, wage proof and contribution check for each contractor sampled
Action planOwner, date and evidence for each fix
Inspection checklistThe records to keep ready for each site

After the audit, HRBS can run the calendar through labour compliance management, or your team can take the plan forward. For one-time audits before an investor review or due diligence, see statutory compliance and HR audit. To take a quick self-check first, try the free HR self-assessment.

HRBS is an HR consultancy, not a law firm; legal opinions and representation come from qualified counsel. We do not promise zero inspection findings.

FAQ

Labour Codes Readiness Audit FAQs

What is a Labour Codes readiness audit?

A review of your sites, records and contractors, reviewed under the Labour Codes and the rules that apply in each state. The output is a ranked list of gaps and an action plan with owners and dates.

Who needs a Labour Codes audit?

Employers with more than one site, several contractors, or an inspection, audit, investor or lender review coming up. A single small unit with a simple calendar may not need one.

Do the Labour Codes apply to my factory?

The central rules apply where the Central Government is the appropriate government. Many private establishments are likely to fall under state rules, so the first step is to map each site. Our Labour Codes post explains where to check.

How long does the audit take and what does it cost?

It depends on the number of sites, entities and contractors. We agree scope, timeline and fee in writing before work starts.

Is the audit legal advice?

No. HRBS is an HR consultancy, not a law firm. The gap register names the rule each gap relates to so your counsel can confirm how it applies.

Not sure where your sites stand under the Labour Codes?

One 30-minute call to agree the scope, the sites and the documents needed.

Book a Labour Codes audit call