Annual and half-yearly returns during the labour code transition

A client once asked me, “Do we switch to the new labour code returns now or wait?” I didn’t sugarcoat it. You follow what’s enforced—not what’s promised. And right now, until rules under the Codes are fully notified and operational, you stick to the old rule. That’s not my opinion—that’s the government’s own FAQ.

 

What applies in the transition period

The government’s FAQs are crystal clear: until the new rules under the Labour Codes are enforced, employers must continue with the old rules and formats for returns, to the extent they align with the Codes. That means your annual, half‑yearly, and quarterly returns under the earlier Acts don’t vanish just because the Codes exist.

According to the Ministry of Labour FAQs in Labour Code (also I would like to cite Section 6 of the General Clauses Act, 1897), the old rules continue to apply until the new Labour Code rules are formally notified and enforced—provided those old rules don’t conflict with the Codes.

“Old rules will remain in force till final notification of new rules under the Code, to the extent these are in line with Codes.” — Ministry of Labour FAQs

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What employers can do right now

• File existing statutory returns:
  Continue filing annual and half‑yearly returns under the applicable old Acts and state rules until the corresponding Code rules and portals officially go live.
• Watch state notifications and portals:
  The Codes are central, but state rules, formats, and portals drive your filing reality. Track whether your state has notified rules and enabled unified or digital return formats.
• Align formats “to the extent” consistent with Codes:
  Where departments issue interim instructions (e.g., consolidated data, electronic submission), adopt them—but don’t drop mandatory legacy returns without written notification.
• Document your position:
  Keep an internal note citing Section 6 of the General Clauses Act, 1897 and the Ministry FAQ. If an inspector asks why you’re filing old returns, you’ll have a clean, defensible trail.
• Run a readiness checklist for Codes:
  Prepare wage definitions, registers, and HRIS fields that the Codes require so you can shift smoothly the moment your state rules are enforced.

 

Old returns that typically remain in play (until rules are enforced)

• Factories, Shops and Commercial Establishments reporting:
  Annual/half‑yearly returns on workers, hours, holidays, accidents filed per state rules.
• Risk: Skipping because “Codes are coming” will backfire if inspectors ask for prior‑format filings.
• Wage and bonus reporting:
  Periodic returns under legacy wage/bonus rules where still prescribed by state notifications.
• Risk: Under‑reporting or format mismatch without official guidance.
• Social security filings (already digital):
  EPF/ESIC remain on their established portals; don’t confuse those with Code returns.
• Risk: Mixing Code transition with PF/ESI operational filings wastes time and creates audit noise.

 

How to manage the transition without tripping

• Compliance calendar:
  Build a dual‑track calendar: old‑Act return deadlines plus “watch points” for anticipated Code rule enforcement.
• Single source of truth:
  Create one master dataset that feeds both old returns and future Code returns. Minimizes rework and keeps your narrative consistent.
• Inspector‑ready file:
  Maintain a folder with:
• Policy note: Why old returns are being filed (cite Section 6, General Clauses Act, 1897).
• Copies of relevant state circulars/FAQs.
• Proof of timely filings and portal acknowledgments.
• Leadership brief:
  Update CFO/CHRO monthly on state rule status, portal readiness, and any interim departmental instructions. Decisions should be documented, not assumed.

Don’t gamble with compliance. Review your return filing process today—ensure you’re aligned with the Labour Codes while monitoring state notifications.

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References

• Section 6, General Clauses Act, 1897 — India Code
• Ministry of Labour & Employment — FAQs on Labour Codes (transition applicability) — labour.gov.in
• Code on Wages, 2019 — India Code
• Industrial Relations Code, 2020 — India Code
• Occupational Safety, Health and Working Conditions Code, 2020 — India Code
• Code on Social Security, 2020 — India Code

 

Disclaimer:
This blog is prepared for general informational purposes only. It is not legal advice, nor does it substitute professional consultation. Labour law compliance in India depends on specific notifications, state rules, and enforcement timelines, which may vary across jurisdictions. Readers must independently verify all information with official government sources (such as labour.gov.in) and consult qualified legal or compliance professionals before implementing any changes.

Neither the author nor the publisher accepts responsibility for any loss, penalty, or legal consequence arising from reliance on this content without proper due diligence. Use this blog as a starting point for research, not as a final compliance directive.