Labour Code Compliance Checklist is now essential for every MSME, startup, shop and small business in India as the new Labour Codes replace 29 old laws in 2025.

2025 has brought the biggest labour reform in India’s history — the Four Labour Codes have officially replaced 29 old laws.
And for small businesses, startups, shops, factories and MSMEs, this means new compliance rules, new documents, new wage structures and new responsibilities.

But don’t worry — we’ve created a simple, practical, no-confusion checklist that every small business can follow.
And yes — you’ll get a downloadable PDF version at the end.

Let’s begin!

you may also like to read: India Labour Law 2025: What the New Four Labour Code Means for MSMEs and Small Businesses

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Why Small Businesses Must Follow the New Labour Code

If you run a shop, factory unit, office, workshop or startup, the new rules apply to you.
Non-compliance can lead to:

• Penalties
• Fines
• Legal notices
• Closure risks
• Loss of government benefits

Staying compliant is now easier than before — but only if you follow the right checklist.

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🧾 NEW LABOUR CODE COMPLIANCE CHECKLIST (2025)

(Save this list, bookmark it, or download the PDF at the end)

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1️⃣ Employee Documentation Compliance

✔ Issue appointment letters to all employees

Mandatory under the new Wage Code.

✔ Maintain updated employee records

Include: name, address, job role, wages, experience, attendance.

✔ Give salary slips every month

Preferably digital (PDF/WhatsApp/email).

✔ Maintain digital attendance (recommended)

Manual registers also allowed but must be error-free.

you may also like to read: Four Labour Codes vs. Old Labour Laws: The Ultimate Side-by-Side Comparison (Simple Table Guide)

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2️⃣ Wage & Salary Structure Compliance

✔ Ensure basic salary = 50% of CTC

This is one of the biggest changes in the new code.

✔ Deduct PF, ESI as per eligibility

More employees now fall under PF/ESI coverage.

✔ Pay overtime at DOUBLE wages

Mandatory under the new rules.

✔ Pay salaries within the prescribed timeline

Delayed payments can attract penalties.

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3️⃣ Working Hours & Weekly Off Compliance

✔ Maintain 48-hour weekly limit

Even if daily hours vary (8–12 hours allowed).

✔ Provide mandatory weekly off

Every employee must get 1 full weekly rest day.

✔ Follow rules for night shifts

Women can work night shifts with safety arrangements.

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4️⃣ Leave, Safety & Workplace Conditions

✔ Display statutory labour information at the workplace

Posters can be physical or digital.

✔ Maintain basic safety and cleanliness standards

As per OSH Code.

✔ Provide adequate ventilation, drinking water, sanitation

Especially for factories & workshops.

✔ Maintain leave registers

Paid leave, sick leave, casual leave (as applicable).

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5️⃣ Contract Labour & Gig Workers Compliance

✔ If using contract workers, ensure contractor license validity

New rule: One national licence valid for 5 years.

✔ Maintain records of contractual staff

Attendance, wages, responsibilities.

✔ Register gig or platform workers (if applicable)

Delivery partners, agents, part-time staff.

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6️⃣ Gratuity, Social Security & Benefits

✔ Gratuity for fixed-term employees after 1 year

New benefit under the Social Security Code.

✔ Ensure maternity benefits for eligible employees

Mandatory compliance.

✔ Maintain PF/ESI registers

Inspection-ready documentation.

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7️⃣ Digital Compliance (Highly Recommended)

✔ Keep all documents backed up digitally

PDFs, Drive, Dropbox or HRMS.

✔ Automate salary slips, attendance & payroll

Avoid compliance errors.

✔ Maintain digital proof of payment

Bank transfers preferred.

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Download Your Free PDF: Labour Code Compliance Checklist
👉 Click here to download the Labour Code Compliance Checklist PDF

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Why This Checklist Matters

The Four Labour Codes are designed to:

• Simplify compliance
• Reduce confusion
• Support ease of doing business
• Protect workers’ rights
• Formalize employment in India

Small businesses that adopt the new rules early will avoid penalties AND qualify for more government benefits and credit support.

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❓ FAQ – New Labour Code Compliance checklist for Small Businesses

1. Does the new labour code apply to very small businesses?

Yes. Even 1–5 employee businesses must follow basic rules like appointment letters, wage standards and safety norms.

2. Will salaries automatically change under the new codes?

Not automatically. Employers must restructure CTC as per the 50% basic salary rule.

3. Are digital salary slips valid?

Yes, digital slips are valid and even recommended.

4. Do startups also need to follow these rules?

Absolutely. Startups and tech companies must comply like any other employer.

5. What is the biggest change for MSMEs?

The biggest changes are:
– 50% mandatory basic salary
– Mandatory appointment letters
– Unified licensing and safety rules

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👤 About the Author

Tabrez Khan
Founder of Business Zindagi, Tabrez simplifies complex government policies, MSME schemes, startup laws and financial topics for Indian small businesses. His writing is known for clarity, accuracy and real-world usefulness.

⚠️ Disclaimer

The information provided in this article and the downloadable PDF is for general educational and informational purposes only. While we strive to ensure accuracy, labour laws and compliance requirements may be updated through government notifications, state rules, and official circulars from time to time.

This checklist should not be considered as legal, financial, or professional advice.
Small businesses, employers, and HR managers are advised to consult a qualified labour law consultant, legal advisor, or HR professional for specific compliance requirements applicable to their business type, state regulations, or industry.

Business Zindagi and the author are not responsible for any loss, penalty, or legal implications arising from the use of the information provided in this article or its related documents.

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🔗 Authentic Sources & References

Here are verified government links related to the new Labour Codes:

1. Ministry of Labour & Employment (India)
   https://labour.gov.in
2. Labour Codes – Official Government Portal
   https://labour.gov.in/labour-codes
3. Code on Wages (Official PDF)
   https://labour.gov.in/sites/default/files/Code%20on%20Wages%2C%202019.pdf
4. Social Security Code (Official PDF)
   https://labour.gov.in/sites/default/files/SocialSecurityCode2020.pdf
5. Industrial Relations Code (Official PDF)
   https://labour.gov.in/sites/default/files/Industrial%20Relation%20Code%202020.pdf
6. OSH Code (Official PDF)
   https://labour.gov.in/sites/default/files/OSHCode2020.pdf

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