Labour Law Compliance in Delhi
Running a business in Delhi means following a set of labour laws that protect employees and keep your company safe from penalties. This guide explains the basics in plain English, so you know what applies, what to file, and how to stay compliant all year round.
What is labour law compliance?
Labour law compliance means following the rules that apply to your workplace: registering your shop or office, paying minimum wages, contributing to social security (PF and ESI), maintaining registers, giving statutory benefits like leave and bonus, and creating a safe work environment. If you miss these, you risk fines, back-payments, and inspections.
Key laws every Delhi employer should know
Delhi Shops & Establishments Act, 1954
Most offices, shops, restaurants, and service firms in Delhi must register under this Act shortly after starting operations. Today, registrations and related services are available online via the Delhi Labour Department systems.
Minimum Wages (Delhi)
Delhi notifies revised minimum wages from time to time. The latest order (effective 1 April 2025) increased rates, so you should verify the correct category (unskilled, semi-skilled, skilled, etc.) and pay at least the current minimum plus applicable Dearness Allowance.
EPF (Provident Fund)
If you meet threshold conditions (generally 20 or more employees, with some exceptions), you must register with EPFO, deduct employee PF, add your employer share, and file returns online each month. EPFO provides an employer portal and documentation to make this easier.
ESIC (Employee State Insurance)
If you employ 10 or more eligible employees (wage thresholds apply), register with ESIC and deposit contributions. ESIC runs an online portal for registration and compliance.
Recent Delhi update on women working night shifts
The Delhi government has permitted women to work night shifts in shops and commercial establishments with conditions like consent, safety, transport, and CCTV. Employers must also ensure required breaks and overtime rules. Check your shift policies and infrastructure accordingly.
Note on the new Labour Codes: India has passed four Labour Codes to consolidate many laws, but their rollout is phased and state-level notifications matter. Until fully implemented, continue complying with the existing laws listed above, plus any Delhi-specific notifications. Always verify the latest state circulars.
How to become compliant in Delhi
Step 1: Register your establishment
Register your shop/office under the Delhi Shops & Establishments Act via the official online systems. Keep your registration certificate handy for inspections and vendor due diligence.
Step 2: Put people on correct payrolls
Collect and verify KYC. Issue appointment letters. Create salary structures that meet Delhi minimum wages and include PF/ESI where applicable. Update wages promptly when Delhi notifies revisions.
Step 3: Social security setup
Register on the EPFO and ESIC employer portals. Map UANs, ensure timely monthly filings and payments, and reconcile challans. Keep an eye on any compliance drives or facilitation schemes that may ease registration.
Step 4: Policies and PoSH
Publish policies on leave, working hours, overtime, holidays, misconduct, and PoSH. Form the Internal Committee (if 10+ employees), train members, and run annual awareness. Display posters and include reporting channels.
Step 5: Registers, notices, and records
Maintain attendance, wages, overtime, leaves, and bonus records. Display statutory notices (e.g., abstract of Acts, minimum wage rates). Keep digital backups and be ready for audits.
Step 6: Health, safety, and working hours
Set up safe premises, first-aid, fire safety, and clean facilities. Follow limits on daily and weekly hours, breaks, and overtime pay. If you run late or night shifts, fulfill the new Delhi conditions for women’s safety and consent.
Step 7: Annual and event-based actions
Revise wages when Delhi issues new minimum wage notifications.
Update PF/ESI wage changes and thresholds when notified.
Conduct annual PoSH training and IC reports.
Renew registrations or licenses if your business category requires it.
Common mistakes that trigger penalties
Paying below Delhi minimum wages or not updating wages after a new notification. labour.delhi.gov.in
Delayed PF/ESI deposits or missing returns.
No PoSH policy or Internal Committee where required.
Not displaying mandatory notices or keeping proper registers.
Incorrect worker classification (treating full-timers as contractors without proper agreements and compliance).
FAQ's for Labour Law Compliance
What is labour law compliance?
Following the rules on registration, wages, PF/ESI, records, and workplace safety so your Delhi business runs legally.
Who needs Shops & Establishments registration in Delhi?
Almost every shop, office, or commercial establishment operating in Delhi. Apply online soon after starting.
What are Delhi’s current minimum wages?
Delhi revises rates periodically. Check the latest notification effective from 1 April 2025 and pay at least that amount for the right skill category.
When is PF/ESI mandatory?
PF generally applies at 20+ employees (with nuances). ESI generally applies at 10+ eligible employees. Register and file online.
Is PoSH mandatory for small offices?
Yes, every workplace must prevent sexual harassment. If you have 10+ employees, form an Internal Committee and follow the Act’s procedures.
Can women work night shifts in Delhi shops/offices?
Yes, with consent and safety measures as per Delhi’s recent update. Review your shift policy and transport/CCTV arrangements.
Geo signals for Delhi businesses
Mention your exact locality (e.g., Connaught Place, Nehru Place, Lajpat Nagar, Dwarka, Rohini, Okhla, Noida border areas if applicable), PIN code, and jurisdiction in your footer and contact page. Link to your Google Business Profile with proper categories and Q&A that reference “labour law compliance in Delhi” and nearby hubs.
How we help (scope of services)
Delhi Shops & Establishments registration
Payroll setup aligned to Delhi minimum wages
EPFO and ESIC registration and monthly filings
Drafting HR policies and PoSH implementation
Compliance audits, registers, and notice displays
Ongoing updates when Delhi or central notifications change (wages, thresholds, shifts)
