Managing an Indian workforce demands extensive knowledge of India’s changing legal landscape. Being one of the world’s biggest labor markets, India has a multifaceted and complex web of employment legislation that human resource professionals should be aware of. For global companies doing business in the region, knowledge of international labor laws for HR is not only desirable—it’s the key to remaining compliant and out of legal trouble.
In this article, we shine the light on the must-have labor laws for HR in India that are on every compliance officer’s agenda in 2025.
1. Industrial Relations Code
One of the four new labor codes brought about by the government of India, the Industrial Relations Code simplifies processes of settling disputes and regulates trade unions, lay-offs, retrenchment, and closure of establishments. It consolidates three existing old laws: the Industrial Disputes Act, the Trade Unions Act, and the Industrial Employment (Standing Orders) Act.
Major HR highlights:
- Standing orders’ provisions are valid only for establishments with 300+ employees.
- Employers are mandated to give a 60-day notice for retrenchment or layoff.
- Procedures for strikes have been tightened with notice periods and procedural requirements.
2. Code on Wages
The Code on Wages integrates four laws dealing with the payment of wages and seeks to unify wage definitions across industries. It deals with minimum wages, payment of wages, and equal remuneration.
Key points of learning for HR professionals:
- A unified definition of “wages” makes salary structures easier.
- All workers, irrespective of salary grade, are now covered by minimum wages and prompt payments.
- The code also requires periodic review and updating of wage levels.
This code is especially vital for the payroll and benefits administration teams to guarantee fair and legal compensation schemes.
3. Occupational Safety, Health and Working Conditions Code
This code consolidates 13 various laws relating to occupational safety, working conditions, and employees’ health. It covers factories, mines, and building and construction establishments as well as establishments employing over 10 workers employing power or over 20 workers employing no power.
For compliance and HR teams:
- The code establishes a shared license for contract labor, factories, and building and construction employees.
- Limits of daily and weekly working hours are specified, and overtime provisions are clearly stated.
- Compulsory health and safety inspections are needed, and the establishments are required to have welfare facilities such as restrooms and drinking water.
4. Social Security Code
The Social Security Code consolidates different laws relating to employee benefits such as provident fund (PF), employee state insurance (ESI), gratuity, maternity benefits, and employee compensation.
What HR should note:
- Platform workers and gig workers are now covered for some benefits.
- All such eligible employees must be registered by employers under schemes such as ESI and PF.
- Eligibility for gratuity has now been extended to fixed-term employees, bringing their benefits on par with permanent employees.
This code plays a significant role in regulating the administration of employee benefits in all sectors of India.
5. Shops and Establishments Acts (State-specific)
All Indian states have a Shops and Establishments Act that governs working conditions for staff in shops, offices, and commercial establishments.
HR teams who work in multiple states must:
- Familiarize themselves with local provisions such as working hours, overtime, leave rules, and rest breaks.
- Get establishments registered under the local state act.
- Follow holiday and wage rules as per state conventions.
These legislations are typically underestimated, but are some of the key international labor laws for HR dealing with routine administrative compliance.
6. Maternity Benefit Act, 1961 (Amended)
This law prescribes up to 26 weeks of paid maternity leave for women workers. The amendment also requires:
- A crèche facility for organizations having at least 50 employees.
- Work-from-home arrangements after maternity leave on a mutual agreement basis.
The law is vital to gender-neutral workplace policies and has implications for compliance by HR, particularly in industries where there is a large number of female employees.
7. Contract Labor (Regulation and Abolition) Act, 1970
It deals with establishments having 20 or more contract laborers. It requires the registration of the principal employer and licensing of contractors.
HR compliance requirements are:
- Providing for contractors to pay minimum wages and adhere to statutory standards.
- Maintaining employment terms and benefits of contract workers on record.
- Aiding the avoidance of lengthy deployment of contract workers as like-for-like staff to avert misclassification.
Conclusion
It takes great attention, especially for HR personnel working on international or remote teams, to be in line with India’s fast-evolving labor regulations. Learning about these essential international labor laws for HR is not only a tool for risk management but also serves to form an unshakeable basis of trust between employees and organization reputation.
To make this complicated terrain more manageable, Global People Strategist provides a strong platform that facilitates HR, Finance, and Legal experts to obtain country-specific labor laws, incorporating thorough information on Indian employment laws. With reliable, organized compliance information at hand, organizations can guarantee they are consistently current and audit-ready.
Learn how Global People Strategist can assist your organization in remaining compliant and assured in handling labor laws across borders.
