Compliance under the Labour Codes: Registration, Licence, Returns

One of the main promises of the Labour Codes was to make compliance simpler without reducing protection. Under the old laws an establishment could need several registrations, contractors several licences, and employers dozens of returns and registers in different formats. The Codes replace these with single, mostly electronic, processes. This note explains the compliance framework across the four Codes and the tools that support it.

1. From Many to One

Compliance before and after the Codes, as described by the Government

Figure 1: Compliance before and after the Codes, as described by the Government

Registration. An establishment registers electronically under s.3 of the OSH Code and s.3 of the Social Security Code; registrations under the repealed Acts are treated as registrations under the Codes.
Licence. A contractor engaging 50 or more contract workers obtains one licence, valid for five years; a contractor working in more than one State can obtain it from the Central authority (Topic 32)
Return. A single electronic return replaces the many returns filed under separate Acts.

2. Documents Every Employer Must Get Right

Core compliance tools

Figure 2: Core compliance tools

Appointment letter. Gives the worker written proof of employment, designation, wages and social security details.
Wage slip. Shows wages earned and deductions made for each wage period.
Electronic records. Registers may be maintained electronically, reducing paperwork and making inspection possible online.

3. Inspection and Guidance

Randomised inspection. Inspections are selected through a web-based, randomised scheme rather than at the inspector's discretion, with information called for electronically.
Opportunity to comply. For many first contraventions, the employer gets a written direction to comply before prosecution.
Compliance handbook. The Ministry released a simplified compliance handbook for employers in February 2026, and FAQs in January and March 2026, which guide but do not override the Codes.
State Rules. States, as the appropriate Government for most establishments, frame their own rules and forms, so compliance details can differ between States.

⚠ Exam trap

As described by the Government: one registration in place of six, one licence in place of four, one return in place of twenty-one. A contractor's licence is valid for five years. Every employee must get an appointment letter, and every employer must issue wage slips. Inspections are randomised and web-based, and first lapses often get an opportunity to comply before prosecution.

4. Frequently Asked Questions

How do the Labour Codes simplify compliance?

They replace multiple registrations with one electronic registration, multiple contractor licences with a single licence valid for five years, and numerous returns with a single electronic return. Registers are reduced and can be kept electronically, inspections are randomised and web-based, and employers often get an opportunity to comply before prosecution.

Do existing registrations under the old Acts remain valid?

Yes. Registrations obtained under the repealed Acts are treated as registrations under the corresponding Code, subject to furnishing any additional details required, so employers do not have to register again from scratch.

5. Related Topics

Topic 37: Decriminalisation and Compounding. What happens when compliance fails.
Topic 38: Transition, Repeal and Savings. Moving from the old Acts to the Codes.