Labour Compliance for HR: Key Registers, Returns, Licences & Inspections

1. Understand your applicability first

Before you do any compliance activity, answer these questions for every establishment:

• Is it a factory, shop and commercial establishment, or an office?
• What is the headcount, including contract and fixed-term workers?
• Which states are you operating in?
• Do you use contractors, and how many workers do they deploy?
• Are there any women on night shifts, or hazardous processes?

Applicability thresholds changed under the Codes (for example, contract labour regulation now begins at 50 workers rather than 20), and the Karnataka Labour Welfare Fund now begins at 10 employees. Always re-check.

2. Registrations and licences

• Establishment registration under the applicable state and Code framework
• EPFO and ESIC registrations, with employee-level UAN and IP numbers
• Professional Tax registration and enrolment, state-wise
• Labour Welfare Fund registration where applicable
• Contractor licence (principal employer) and the contractor's own licence; the OSH Rules provide for a single licence for contractors operating in multiple states
• Gig and platform worker registration for aggregators, available via API

3. Core records and registers

Keep these ready, in a form that can be produced within minutes:

• Employee register with appointment letter, designation, date of joining, wage rate
• Attendance and overtime register
• Wage register, with payslips
• Leave register
• Deduction and advance register
• Bonus and gratuity records
• Accident and safety records, where relevant
• Contractor documents: licences, wage proof, PF/ESIC challans
• Standing orders or service rules, which the Model Standing Orders now provide for the manufacturing, services and mining sectors

The new rules expect digital maintenance to be acceptable, so move away from physical-only records and make sure data is secure and exportable.

4. Returns and statutory filings

• Monthly: PF ECR and ESIC contributions by the 15th; TDS by the 7th
• Half-yearly: ESIC returns (11 May and 11 November)
• Annual: PF annual statements, Labour Welfare Fund statements (Karnataka: Form D by 15 January), annual returns under the relevant Code
• Quarterly: TDS returns

[verify exact dates for your state before adding to your calendar]

5. Contractor and principal employer compliance

The principal employer is ultimately answerable for statutory dues of contract workers, so don't treat contractor compliance as "their problem."

1. Collect the contractor's licence, PF and ESIC registration before onboarding.
2. Every month, obtain proof of wage payment, PF and ESIC challans, and attendance.
3. Verify wages are at least the state minimum wage.
4. Audit a sample of workers quarterly.
5. Hold payments if compliance proofs are missing.

6. Working hours, overtime and leave

• Standard limits are 48 hours a week, with flexible distribution permitted.
• Overtime is paid at twice the ordinary rate.
• Women working night shifts require consent and safety measures such as transport and security.
• Leave entitlements, including earned leave, maternity leave and paid holidays, must be recorded and honoured.

7. Health, safety and welfare

• Safety committees, fire safety, first aid, and canteen/creche where thresholds apply
• Annual health check-ups for eligible employees as the OSH framework requires
• Accident reporting and record keeping

8. POSH and grievance mechanisms

Any establishment with 10 or more employees must have an Internal Committee under the POSH Act, and file the annual report. Keep a documented grievance process for everyone else.

9. Preparing for an inspection

1. Keep a compliance binder or digital folder, indexed by Act and month.
2. Appoint one person as the inspection coordinator.
3. Run a mock audit twice a year.
4. Fix gaps before the inspector finds them.
5. Never alter records after a notice. Courts treat that as worse than the original lapse.

10. Monthly compliance calendar (template)

Conclusion

Compliance fails when it depends on one person's memory. Build a calendar, assign owners, and use a system that keeps evidence. When an inspector arrives, a calm, organised response is your best defence.