Labour Law Compliance & HR Audit Under Indian Employment Laws

The examples we have cited are not limited to one of examples. The manufacturing company that updates its fully and finally settled process according to the Code on Wages will likely have to continue to do so as other states update their rules, and as its own compensation practices change. The logistics company that has to track its compliance with varying rules in the states it operates in will have to keep pace with the differing speeds of adoption of the new labour codes in these states, and keep abreast of newly added states as well. The hospitality group that has begun to extend its social security benefits and gratuity to its fixed term workers will have to apply similar updates to every new category of workers it adds. The factory that has updated its safety policy this year will have to revisit these policies again next year if any of the states it operates in notify rules that are more stringent than the central laws. This is the nature of the compliance risk that businesses face under the current framework, where the law is already in force, but state, level rules have been slow to take shape ,  the risk is not that these rules may change in the future, but that a business may not keep pace with a law that has already come into force.

This is why Corrida Legal's assistance in relation to the new labour codes is focused on providing ongoing advisory support, as opposed to a one time compliance exercise. Our preference, as well as that of our clients, is for businesses to be able to follow the most current laws as they apply to their payroll, in each state they operate in ,  for wages to be compliant right away, as opposed to waiting for a 'final settlement'. The majority of our work in relation to the new labour codes consists of updating HR policies in line with the codes currently applicable to a business, in each jurisdiction. Disputes and regulatory audits do arise, particularly where a business has not kept pace with a state's implementation timeline, and when they do, we represent our clients through them. But our emphasis remains on keeping documentation and practice compliant, so that such disagreements are the exception rather than the norm.

In practice, this often means that our work with a business does not conclude upon completion of a single compliance exercise, the business that approaches us today to understand its compliance position under the new labour codes, will likely return to us again when a newer state adds its rules, or when its employee workforce changes sufficiently to require additional documentation. We recommend our clients maintain continuity of our services, because their compliance position under the new labour codes will continue to evolve ,  just as the law itself has so far. A business with multi, jurisdictional operations will require ongoing support as rules in some of the states it operates in change.

An advisor who has already seen and understood the evolution of a business's payroll practices, policy documentation, and prior compliance audits, is best placed to understand and assess a shift in this status quo, compared to an advisor who begins working with a business anew, without an understanding of these details. This is the value we bring to a business that navigates the new labour codes ,  not as a self- contained, one, time exercise, but as an evolving advisory relationship, as it works to stay current with a law that has already come into force, and continues to evolve.