What Is the New Labour Code?
The Government of India consolidated 29 existing labour laws into four streamlined codes:
Code on Wages, 2019
Industrial Relations Code, 2020
Social Security Code, 2020
Occupational Safety, Health and Working Conditions (OSH) Code, 2020
These codes cover everything from wages and social security to workplace safety and employee rights. The goal is to bring consistency, reduce compliance burden, and improve working conditions across all sectors.
Key Highlights of the New Labour Code
1. Standard Wage Structure
Under the new structure, 50% of total compensation must be considered as "wages."
This impacts:
Provident Fund contribution
Gratuity calculation
Leave encashment
Bonus and overtime
Employers must restructure their salary models to ensure 100% compliance.
2. Flexible Work Hours
The New Labour Code introduces:
A 4-day work week (optional)
48 hours weekly limit
Mandatory overtime payment
Improved work-life balance
This overhaul gives employers more flexibility while protecting employees’ rights.
3. Improved Social Security
The Code extends social security benefits to:
Gig workers
Platform workers
Contract employees
This ensures broader coverage and better financial security for India’s evolving workforce.
4. Digital Recordkeeping
The New Labour Code encourages digital registers, e-reports, and automated filing—making manual compliance outdated and risky.
Why the New Labour Code Matters for Businesses
The impact on organizations is significant:
Increased compliance responsibilities
Changes in payroll calculations
Revised HR documentation
Higher cost liabilities (PF, gratuity)
Stricter penalties for non-compliance
Without proper systems in place, businesses may face fines, legal action, and operational disruptions.
How Digiliance Helps You Stay Compliant
As companies navigate the shift to the New Labour Code, Digiliance provides the technology and expertise needed to stay ahead.
1. Automated Compliance Solutions
Digiliance’s platform automates:
Registers
Reports
Statutory filings
Recordkeeping
This ensures zero errors and full legal compliance.
2. Real-Time Updates
Labour laws change frequently.
Digiliance keeps businesses informed with instant updates, preventing accidental non-compliance.
3. Expert Support
With a team of compliance specialists, Digiliance guides companies on:
Salary restructuring
PF/ESI impacts
Documentation updates
Audit readiness
You get clarity, accuracy, and confidence.
4. Centralized Dashboard
Businesses can track:
Compliance status
Deadlines
Reports
Documents
—all in one place, improving efficiency and transparency.
Why Choose Digiliance?
✔ Trusted compliance partner
✔ User-friendly technology
✔ Automated New Labour Code compliance
✔ Expert consultancy
✔ Accurate reporting reduced risk
✔ Ideal for HR, payroll compliance teams
Digiliance ensures that companies of all sizes are ready for the New Labour Code—smoothly, effortlessly, and on time.
Conclusion
The New Labour Code is shaping the future of compliance in India. While it simplifies regulations, it also demands accuracy, updated systems, and proactive management. Organizations using manual methods may struggle to keep up with the new requirements.
With Digiliance’s automated compliance solutions and expert support, businesses can transition easily into the New Labour Code era—ensuring legal safety, better governance, and complete peace of mind.
