Committees are mandatory
Employment & Labour Compliance in India
Indian employers must constitute formal internal committees at modest headcounts, and the obligation is absolute.
GCC business setup specialists
Compliance includes things you must set up, not just pay
Beyond contributions and benefits, Indian law requires employers above a low headcount to constitute an internal committee for handling workplace harassment complaints, with prescribed composition including an external member, and to file an annual report. It is mandatory, routinely inspected and frequently absent in small foreign-owned offices. Alongside it sit provident fund and insurance contributions, gratuity accruing with service, and a maternity entitlement among the most generous anywhere.
- Mandatory committees constituted properly, not nominally
- All contribution streams registered and running from the first hire
- Gratuity and leave entitlements provisioned, not discovered
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
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What applies
Employer obligations in India
Several apply from a low headcount.
| Obligation | What it involves |
|---|---|
| Provident fund | Employer and employee contributions above thresholds. |
| State insurance | Contributions for employees below a wage ceiling. |
| Gratuity | Accrues with service, payable after qualifying years. |
| Maternity benefit | A long paid entitlement by international standards. |
| Internal committee | Mandatory above a low headcount, with annual reporting. |
| State labour registrations | Per state and premises. |
Contribution thresholds, gratuity rules, maternity entitlements, committee requirements and state labour obligations are set by central and state law and change, and consolidating labour codes have been enacted with implementation staged. Yours are confirmed against current requirements.
How it works
Getting employment right
Register, constitute, then run.
01
Register as an employer
Provident fund, state insurance and state labour registrations completed before the first payroll.
02
Constitute what is required
Internal committee established with proper composition, and policies issued, because the obligation is absolute rather than proportionate.
03
Run and provision
Contributions remitted monthly, gratuity provisioned as it accrues, and leave and maternity entitlements administered correctly.
Before your first hire
What to have in place
Several items are mandatory at low headcounts.
- Employment contracts and appointment letters
- Provident fund registration
- State insurance registration where applicable
- State shops and establishments registration
- Professional tax registration where levied
- Payroll configured for all contribution streams
- Internal committee constituted with an external member
- Harassment prevention policy issued
- Gratuity provisioning arrangements
- Leave and maternity policies
- Working hours and overtime rules
- Statutory registers and records
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Employer registrations across all applicable streams
- Employment contracts and appointment letters
- Internal committee constitution support
- Policy documents including harassment prevention
- Full employer cost calculation
- Gratuity provisioning guidance
- Guidance on leave, maternity and working hours
- Annual committee reporting support
Not included, quoted separately
- Contributions and government fees, paid at cost
- Salaries, gratuity and benefit payments
- External committee member fees
- Representation in labour proceedings
- Dispute resolution, quoted separately
- Recruitment and interviewing
- Training programmes
- Payroll processing unless included
Verify independently
Official Indian authorities
We file directly with these bodies on your behalf.
Reserve Bank of IndiaSecurities and Exchange Board of IndiaEmployees’ Provident Fund OrganisationForeigners Regional Registration OfficeTrade Marks RegistryState labour departments
Questions
India employment compliance — FAQs
What is the mandatory internal committee?
A committee employers above a low headcount must constitute to handle workplace harassment complaints, with prescribed composition including an external member, plus annual reporting. It is absolute, not proportionate to size.
When do provident fund contributions apply?
Above prescribed headcount and wage thresholds, with employer and employee contributions. We confirm whether your establishment is covered.
What is gratuity?
A payment accruing with service and payable after a qualifying number of years. It should be provisioned monthly rather than met from cash flow at exit.
How long is maternity leave?
A long paid entitlement by international standards. It needs to be in the cost model and in the resourcing plan.
Have the labour codes replaced all this?
Consolidating codes have been enacted with implementation staged, so parts of the older framework remain in force. We apply what is actually in effect rather than what is announced.
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