Indian Labour Laws 2026: Acts, Codes & Compliance

Who must comply

All employers across organised and unorganised sectors once notified.

Key thresholds

Universal floor wage to be set by central government. State minimum wages cannot fall below the floor.

Penalty for default

Up to Rs 50,000 fine for first offence and up to three months imprisonment for repeat offences.

Who must comply

All employers covered under the constituent Acts plus aggregators of gig and platform workers once notified.

Key thresholds

Gig and platform workers brought under welfare for the first time.

Penalty for default

Up to Rs 1 lakh fine for first offence and up to one year imprisonment for repeat offences.

Who must comply

All industrial establishments and trade unions once notified.

Key thresholds

Threshold for prior government approval for layoff, retrenchment, and closure raised from 100 to 300 workers.

Penalty for default

Penalties up to Rs 10 lakh and imprisonment depending on offence severity.

Who must comply

Factories with ten or more workers, mines, docks, plantations, contract labour, and other notified establishments.

Key thresholds

Single licence and single registration across multiple establishments and contracts within a state.

Penalty for default

Up to Rs 3 lakh fine and imprisonment up to one year depending on offence.

Who must comply

Establishments paying wages up to Rs 24,000 per month, expanded scope under Code on Wages.

Key thresholds

Wages must be paid by the seventh of next month for under 1,000 employees, tenth for larger.

Penalty for default

Fine up to Rs 7,500 per offence under the original Act, higher under Code on Wages.

Who must comply

All employers in scheduled employments notified by central or state government.

Key thresholds

States revise wages every five years or more frequently. Floor wage applies under Code on Wages.

Penalty for default

Fine up to Rs 500 and imprisonment up to six months under the original Act.

Who must comply

Establishments with twenty or more employees in any accounting year.

Key thresholds

Minimum bonus 8.33% and maximum 20% of wages or Rs 7,000 whichever is higher.

Penalty for default

Fine up to Rs 1,000 and imprisonment up to six months for non-payment.

Who must comply

All employers across covered employments.

Key thresholds

Equal pay irrespective of gender for same or similar work.

Penalty for default

Fine up to Rs 20,000 and imprisonment up to one year.

Who must comply

Establishments with twenty or more employees and certain specified sectors.

Key thresholds

Employer and employee contribute 12% of basic wages each. EDLI insurance up to Rs 7 lakh.

Penalty for default

Damages up to 25% per annum on delayed contributions plus interest.

Who must comply

Factories and establishments with ten or more employees in most states.

Key thresholds

Wage ceiling Rs 21,000 per month for coverage. Employer 3.25%, employee 0.75%.

Penalty for default

Damages up to 25% on delayed contributions and possible imprisonment.

Who must comply

Establishments with ten or more employees.

Key thresholds

Gratuity equals 15 days of wages for every completed year, capped at Rs 20 lakh.

Penalty for default

Fine up to Rs 20,000 and imprisonment up to two years for non-payment.

Who must comply

Establishments with ten or more employees.

Key thresholds

26 weeks leave is among the highest in the world. Creche mandatory at fifty employees.

Penalty for default

Fine up to Rs 5,000 and imprisonment up to one year for non-payment.

Who must comply

All employers covered under the Act including factories, plantations, mines, transport.

Key thresholds

Compensation tied to wage and degree of disability. Minimum and maximum amounts revised periodically.

Penalty for default

Fine and possible prosecution for failure to pay compensation.

Who must comply

Factories with ten or more workers using power, twenty without power.

Key thresholds

Adult worker maximum 48 hours per week and 9 hours per day. Overtime at twice the wage rate.

Penalty for default

Fine up to Rs 1 lakh and imprisonment up to two years for serious violations.

Who must comply

All commercial establishments including offices, shops, restaurants, theatres, and IT companies.

Key thresholds

Each state has its own Act. Most cap working hours at nine per day and forty-eight per week.

Penalty for default

Penalties vary by state. Most allow fines and prosecution for repeat offenders.

Who must comply

Industrial establishments employing one hundred or more workmen, threshold reduced to fifty in some states.

Key thresholds

Standing orders must be certified by certifying officer and posted in workplace languages.

Penalty for default

Penalties for failure to draft, certify, or comply with standing orders.

Who must comply

All industrial establishments employing workmen as defined in the Act.

Key thresholds

Prior government approval needed for retrenchment in establishments with one hundred or more workmen.

Penalty for default

Fine up to Rs 1,000 and imprisonment up to six months for illegal strikes or lockouts.

Who must comply

Trade unions of seven or more members across any industry.

Key thresholds

Minimum 10% of workforce or 100 workmen needed for registration of new unions in establishment.

Penalty for default

Fine and cancellation of registration for non-compliance with returns.

Who must comply

Every workplace including offices, factories, hospitals, schools, sports venues, and homes for domestic workers.

Key thresholds

Internal Committee mandatory at workplaces with ten or more employees. Annual report to District Officer.

Penalty for default

Fine up to Rs 50,000 for first offence and possible licence cancellation for repeat default.

Who must comply

Establishments and contractors employing twenty or more contract workers.

Key thresholds

Principal employer becomes liable if contractor fails to pay wages or provide welfare.

Penalty for default

Fine up to Rs 1,000 and imprisonment up to three months for violations.

Who must comply

Establishments and contractors employing five or more inter-state migrants.

Key thresholds

Wage parity with similar local workers. Displacement allowance of 50% of monthly wages or Rs 75 whichever is higher.

Penalty for default

Fine up to Rs 1,000 and imprisonment up to one year for violations.

Who must comply

Establishments employing four or more workers in designated industries.

Key thresholds

Mandatory engagement of apprentices in size bands set by government. Stipend per apprenticeship rules.

Penalty for default

Fine up to Rs 500 per apprentice short and Rs 1,000 for repeat default.

Who must comply

Plantations of five hectares or more employing fifteen or more workers on any day in twelve months.

Key thresholds

Welfare obligations include housing, schools, hospitals, and creche on plantations.

Penalty for default

Fine and imprisonment for failure to provide statutory welfare.

Who must comply

Establishments employing beedi or cigar workers including home-based workers.

Key thresholds

Health and welfare emphasis given the cottage and home-based nature of work.

Penalty for default

Fine up to Rs 250 and possible licence cancellation.

Who must comply

All mines in India including coal, lignite, and metal mines.

Key thresholds

Adult worker maximum 9 hours per day above ground, 8 below. Weekly maximum 48 hours.

Penalty for default

Fine and imprisonment depending on safety violation severity.

Who must comply

Establishments employing ten or more construction workers including project sites.

Key thresholds

Cess of one percent of construction cost goes into State Welfare Boards for worker welfare.

Penalty for default

Fine and imprisonment depending on safety violation.

Who must comply

All shops, commercial establishments, IT, ITES, BPO, and KPO companies in Karnataka.

Key thresholds

Maximum 9 hours per day and 48 hours per week. Women allowed in night shifts with safeguards.

Penalty for default

Fine and possible cancellation of registration for non-compliance.

Who must comply

All shops and commercial establishments with ten or more employees in Maharashtra.

Key thresholds

Online registration mandatory. Maximum 9 hours per day and 48 hours per week.

Penalty for default

Fine and imprisonment for repeat or wilful violations.

Who must comply

All commercial establishments in Delhi with one or more employees.

Key thresholds

Maximum 9 hours per day and 48 hours per week. Online registration on Labour Department portal.

Penalty for default

Fine and possible prosecution for non-compliance.

Who must comply

All commercial establishments in Tamil Nadu with five or more employees.

Key thresholds

Maximum 8 hours per day in many cases. Strict enforcement around overtime and women employment.

Penalty for default

Fine and prosecution for non-compliance.