Labour Codes: #17 Streamlining Employee Onboarding Process Under The New Labour Code

1. Introduction

The implementation of New Labour Codes in India- consolidates 29 existing labour codes into four streamlined codes, namely:

1. The Code on Wages, 2019
2. The Industrial Relations Code, 2020
3. The Code on Social Security, 2020, and
4. The Occupational Safety, Health and Working Conditions Code, 2020

Accordingly, the onboarding process for new employees has undergone notable changes. These reforms aim to bring transparency, improve compliance, and ensure better protection of employee rights from the very first day of employment.

2. Key Features of Mandatory Onboarding Documents

1. Letter of Appointment: Issuing a written appointment letter is now mandatory for all employees across sectors. It must clearly state terms of employment, including role, pay structure, probation period, and termination conditions.
2. Employee Information Form: Employers must collect comprehensive employee data, including Aadhaar, PAN, educational qualifications, and emergency contacts, to align with ESI and EPF compliances.
3. Statutory Declaration: Forms related to EPF, ESI, Gratuity, and Leave Encashment must be filled at the time of joining.
4. Code of Conduct & Company Policies: Employers must provide clear documentation on workplace policies, including those on sexual harassment, working hours, and disciplinary actions.
5. Acknowledgment of Understanding: New employees should acknowledge that they have read, understood, and agreed to abide by the company's policies and the terms outlined in the appointment letter.
6. Health & Safety Declaration: Under the Occupational Safety Code, a self-declaration on physical and mental fitness may be required for certain job roles.
7. Social Security Registration: Enrolment into social security schemes like PF and ESI is mandatory from Day 1, with proper documentation submitted through designated portals.

3. Conclusion

The New Labour Code strengthens the foundation of employment by ensuring clarity, consistency, and legal compliance in onboarding procedures. Both employers and employees benefit from this structured documentation process—employers through reduced legal risks, and employees through enhanced transparency and protection. Ensuring timely and accurate submission of these documents is no longer optional but a legal requirement for every organization.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.