Adapting a Foreign Employer's HR Policies to India's Four New Labour Codes
With India's four new Labour Codes changing wage definitions, working hours, and statutory contributions, this employer's existing HR policies and contracts no longer matched the law. A2 ran a gap assessment, redrafted contracts and policies, and updated payroll and registrations accordingly. [PLACEHOLDER: replace with
IT Consulting company global HR policies were realigned to the new labour codes. The starting point was a gap assessment comparing the employer's existing employment contracts, HR policies, and payroll structure against the requirements of the four new Labour Codes.
Gap assessment against the new Labour Codes
Wage definitions, working hour limits, leave entitlements, and social security contribution rules under the new codes were compared line by line against the employer's existing policies, surfacing specific clauses and payroll components that no longer complied.
Redrafting contracts and HR policies
Employment contracts and HR policy documents were redrafted to reflect the new wage definition and statutory entitlements, replacing outdated clauses that referenced the prior legal framework.
Updating payroll and statutory registrations
Payroll structures were adjusted to reflect the revised wage definition's impact on Provident Fund and gratuity calculations, and statutory registrations were updated to align with the new compliance requirements.
The Result
The employer's contracts, policies, and payroll were brought into alignment with the four new Labour Codes ahead of enforcement, with no retroactive exposure on wage or contribution calculations.
Key outcomes
- Full gap assessment completed against all four new Labour Codes
- Employment contracts and HR policies redrafted to current legal requirements
- Payroll recalculated to reflect the new wage definition
- Statutory registrations updated ahead of enforcement, avoiding retroactive exposure
Why This Matters Beyond This Case
[PLACEHOLDER: replace this section with your own framing.] The new wage definition under the Labour Codes changes the base for Provident Fund and gratuity calculations for many employers, and companies that don't update their payroll structure in time can end up with a compliance gap that only surfaces during an inspection or audit.