As a business grows, HR compliance obligations grow with it, often quietly. Crossing a headcount threshold, opening in a new state or changing pay structures can bring new requirements that nobody on the team is tracking. The result is usually discovered at an awkward moment: an inspection, an employee dispute or an investor’s due diligence.
This checklist covers the areas we review most often with growing Indian businesses. It is general guidance rather than legal advice, and the exact rules that apply to you depend on your headcount, locations, industry and the current central and state regulations.
Registrations
- Shops and establishments or factory registration for every location, renewed on time.
- Provident fund and ESI registrations once your establishment falls within their coverage.
- Professional tax registration in states that levy it.
- Labour welfare fund and other state-specific registrations where applicable.
Monthly and periodic contributions
- Provident fund contributions deposited and returns filed by the due dates.
- ESI contributions for covered employees, with records of eligibility.
- Professional tax deducted and deposited where a state requires it.
- Tax deducted at source on salaries, with employee statements issued.
Payments and benefits
- Minimum wages checked against the notified rates for each state and category.
- Statutory bonus calculated and paid for eligible employees.
- Gratuity liability tracked, and paid correctly when employees leave after the qualifying period.
- Leave, holidays and overtime handled in line with applicable rules.
Records and registers
- Attendance, wage, leave and overtime records maintained and retained.
- Appointment letters and employment terms issued to every employee.
- Registers and notices displayed at each workplace where required.
Policies and workplace safeguards
- A policy on prevention of sexual harassment, with an Internal Committee constituted where required.
- Maternity benefit provisions reflected in policy and practice.
- A clear, current employee handbook covering conduct, leave, grievance and exit.
Exits and settlements
- Full and final settlements completed within a defined timeline.
- Relieving and experience letters issued consistently.
- Provident fund transfers or withdrawals supported for leavers.
Keep the checklist alive
A checklist only helps if someone owns it. We recommend a compliance calendar with named owners for each obligation, a quarterly internal review and an independent HR audit at least once a year, plus before fundraising, acquisitions, entering a new state or crossing a major headcount threshold.
India’s labour laws continue to evolve, including the consolidation of central laws into labour codes. Review how current central and state rules apply to your business, and take legal advice where needed.
Good Human Consultants sets up HR operations and compliance frameworks that keep growing businesses audit-ready. Explore our HR compliance services or book an HR audit.
