Maslo Consulting is India's only HR firm with its own proprietary AI product suite. This guide is written by our HR practitioners with 20+ years of field experience across Indian companies. For specific advice on your situation, contact our team.
Core compliance categories
A working HR compliance checklist for an Indian company typically spans statutory registrations (EPF, ESI, Professional Tax, Shops & Establishment), payroll compliance (minimum wages, timely wage payment, TDS), POSH (ICC formation, training, annual reporting), contract labour compliance if applicable, and documentation (appointment letters, HR policies, leave records). Each category has its own filing cadence — some monthly, some annual — which is why compliance gaps usually happen not from ignorance of the law but from missed deadlines buried across too many different portals and due dates.
How the new labour codes change this
With the four labour codes now in effect from November 2025 (and detailed rules still being finalised through 2026), several categories on a standard checklist are set to change — particularly how wages are defined for PF and gratuity calculations, fixed-term employment documentation, and working-hours limits. Rather than rebuilding your checklist from scratch, the practical approach is to keep your existing statutory checklist live and layer in code-specific changes as central and state rules are notified, so nothing falls through the transition.
Frequently asked questions
What are the key HR compliance requirements for companies in India?
Key HR compliance requirements in India include: POSH Act compliance (ICC formation, policy, training, annual report), EPF registration and contributions, ESI registration and contributions, Professional Tax compliance (state-specific), Shops and Establishments Act registration, Minimum Wages Act compliance, Maternity Benefit Act compliance, Gratuity Act compliance, and compliance with applicable state-specific labour laws.
What is Professional Tax and who must pay it?
Professional Tax is a state-level tax levied on individuals earning above a threshold income. It is deducted from employee salaries and deposited with the state government. Not all states have Professional Tax — states that levy it include Maharashtra, Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana, and Gujarat. Rates and slabs vary by state.
What is the Shops and Establishments Act?
The Shops and Establishments Act is a state-level law that governs working conditions for employees in shops, offices, and commercial establishments. Registration under this Act is mandatory for most businesses. It covers working hours, leave entitlements, overtime, and termination procedures. Each state has its own version of the Act.
Is a labour law audit necessary for companies in India?
A labour law audit is not legally mandatory but is strongly recommended for all companies. An audit identifies compliance gaps before labour inspections or employee complaints expose them. Given the complexity of India's labour law framework — 44 central laws plus state-specific regulations — most companies have multiple compliance gaps that they are unaware of.
How often should HR compliance be reviewed?
HR compliance should be reviewed at minimum annually. However, given the ongoing implementation of the 4 new labour codes, companies should review compliance every six months. Compliance must also be reviewed whenever there is a change in headcount, entry into a new state, change in salary structures, or a merger or acquisition.
Need help with HR compliance?
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