Labour Law Compliance Checklist for 2025

As someone who owns a business, you would know that staying legally compliant is extremely important. But the labour laws are so many, for example at the central level, state level as well as local laws, that sometimes it gets hard to follow the same and there are higher chances of missing out on a couple at times. That’s why this update labour law compliance checklist for 2025 that we have put together can help organizations stay updated and follow the laws relevant to their business. Our updated labour laws statutory compliance checklist can simplify the complexities and help you focus on the key laws of your business.

Labour law statutory compliance refers to a set of accepted terms or conditions of employment. It refers to several regulatory compliances, including the wages act, the Workmen’s compensation act, the contract labour act, the factories act etc. All companies regardless of its size or industry, is subject to a variety of laws. These laws ensure fair treatment of employees, safe working conditions, and proper financial transactions such as salary payments, taxes, and benefits. The consequences of non-compliance? Hefty fines, legal troubles, and damage to your reputation.

List of aspects that a labour law compliance checklist must cover

A complete labour law compliance checklist must contain a list of items that an organization must review. Here are some of the most common ones-

Contracts of employees

Make sure that the employment contracts you draft and hand out to employees during their joining, comply with labour laws in your jurisdiction

Minimum wages

All employees must be paid a minimum wage as per the law, in order to ensure fairness and equality.

Working extra hours

If your employees are working extra hours than the maximum hours allowed by the law, you are to pay them fairly for their extra hard work.

Safety in the workplace

Make sure that you take proper precautions in the workplace to maintain safety. It could include providing protective equipment, implementing safety procedures and protocols and offering training to employees.

Discrimination

Do not discriminate against employees based on factors like race, gender, religion, age and other characteristics.

Medical and family leave policies

Ensure that you are complying with all family and medical leave laws, including providing eligible employees with time off for qualified reasons.

Payroll taxes

Make sure your payroll processing is in compliance with the laws, meaning you are withholding the required taxes as per state and local laws.

Record keeping

Make sure that all records including employment contracts, payroll records, employee files are maintained properly.

Classify workers accordingly

If you have workers working for you full time, half time or on contract basis, make sure you classify them properly and pay them as per the laws.

Labour Law Compliance Checklist 2025

Here is an updated labour law statutory compliance checklist that companies must follow in 2025 to stay compliant.

Employees Provident Fund (EPF)

The EPF Act that was introduced in 1952 is present to ensure the right retirement benefits for employees. Companies that have employees that are earning below 15000 are to contribute to the provident fund.

Employees’ State Insurance Corporation (ESIC)

Employees earning under 21000 are entitled to a variety of benefits under the ESIC Act like Maternity Insurance, Sickness benefits, dependant benefits, funeral benefits and disability benefits and other medical benefits. These contributions are deducted every month from the salaries.

Minimum Wages Act,1948

Under the minimum wages act, employees are to be paid a minimum wage. From state to state as well as the type of industries taken into consideration this wage standard varies. So, it’s best to keep yourself updated about the latest rates for your region.

Payment of Bonus Act, 1965

If a company has 20 or more employees than its mandatory for them to pay bonuses that range from 8.33% to 20% of an employee’s salary. This profit is based on the profits an organization is making, as well as the employee’s salary level.

Payment of Wages Act, 1936

Employee wages must be paid on time, accurately avoiding any delay. Delayed payment can lead to penalties, employee dissatisfaction and low retention rates, affecting the organization overall.

The Maternity Benefits Act, 1961

Companies must provide maternity benefits to female employees. This includes paid leave for up to 26 weeks, along with other provisions. Non-compliance? Penalties apply.

There are also some other laws that are a must in order to prepare the labour law compliance checklist.

• Shops and commercial Establishment Act
• The Professional Tax Act
• The Labor Welfare Fund Act
• The Payment of Gratuity Act, 1972
• The Equal Remuneration Act, 1976

There is also a calendar type of checklist that is required to ensure proper compliance.

For Example,

• TDS must be deducted and deposited by the 7th of every month followed by form ITNS281.
• As for the Factories Act, returns must be filed by the 15th of every month, and EPF must be deposited by the 21st of every month.
• ESI deductions and forms must be done by the 21st of the following month.
• Quarterly Income Tax returns in form 24Q and form 27 need to be filled by 31st of applicable month or the quarter.

Benefits of Staying Compliance with Labour laws

Keeping compliance with the statutory laws and regulations doesn’t just keep you from legal troubles. Some of the benefits your organization can reap out of the same are-

• Better employee retention- By staying compliant with labout laws, company’s exhibit their ethics and commitment towards employees. This fosters and sense of security and fairness.
• Enhanced business operations- Staying compliant allows organizations to focus on their core business activities, leading to better productivity and growth.
• Boost in brand loyalty- Investors, stakeholders, and even customers trust compliant companies more. Statutory compliance reflects a company’s dedication to ethical practices.

Conclusion

Staying ahead of statutory compliance in 2025 is essential for your organization’s success. By following this updated compliance checklist, you can ensure your company stays on the right track. Compliance goes beyond avoiding penalties—it strengthens trust, enhances employee satisfaction, and drives business growth.

Ready to turn compliance into your competitive advantage in 2025? Use the checklist and position your business for success.

Need assistance? Kickstart your compliance journey with Alp Consulting’s Compliance services and simplify managing statutory regulations effortlessly.