HR Compliance FAQ: WFH & Standing Orders under the 2026 Labour Codes

1. Is "Work From Home" now a legal right for employees?

No. While the New Labour Codes (specifically the IR Code 2020) formally recognize WFH, they do not grant it as an automatic right. WFH is a discretionary arrangement based on the mutual agreement between the employer and the employee, or as defined in the company’s certified Standing Orders.

2. We have over 300 employees. Do we need to change our Standing Orders?

Yes. The threshold for mandatory Standing Orders has increased from 100 to 300 employees. If you meet this threshold, you must:

• Review the Model Standing Orders (Schedule C for Service Sector).
• Adopt or modify your orders to include specific clauses on WFH, digital conduct, and IT security.
• Submit these for certification (or adopt the Central Model Standing Orders for "deemed certification").

3. What specific WFH clauses should be added to our service rules?

To be compliant in 2026, your WFH policy should explicitly cover:

• Eligibility: Which roles are "WFH-compatible."
• Working Hours: Clear start/end times to avoid "spread-over" violations (which generally cannot exceed 12 hours a day including intervals).
• IT Security: Mandatory clauses regarding unauthorized access to company networks (now classified as misconduct under the new rules).
• Cost Reimbursement: Clarify whether the company provides allowances for internet, electricity, or home-office setups.

4. How does the "Code on Wages" impact our remote employees?

The 2026 wage definition is strict. Any allowance exceeding 50% of total remuneration is added back to the "wages" for calculating PF, ESI, and Gratuity.

• HR Action: If you provide a "WFH Allowance," ensure it is clearly categorized. If it is a reimbursement (e.g., actual internet bills), it may stay out of the 50% wage calculation. If it is a flat allowance, it counts towards the 50% limit.

5. Can we be penalized if an employee works late into the night while WFH?

Potentially. Under the Code on Wages, 2019, overtime is double the normal wage. If your remote employees are logged in after hours, they may be legally entitled to overtime pay.

• Compliance Tip: Implement digital "Time-In/Time-Out" systems for remote staff. If an employee works beyond 48 hours a week, the system should trigger a request for overtime approval to protect the company from future wage claims.

6. What about the "Right to Disconnect" Bill? Should we ignore it for now?

While the Right to Disconnect Bill, 2025 is currently a Private Member's Bill (meaning it isn't a law yet), HR should not ignore the sentiment.

• The Risk: In 2026, Indian courts and labour inspectors are placing higher emphasis on "Mental Well-being" under the OSH Code. Constant after-hours pings can be framed as a violation of "safe working conditions."
• Proactive Strategy: Draft a Digital Communication Charter that discourages non-emergency messages between 8:00 PM and 8:00 AM. This acts as a "soft-law" compliance measure.

7. Do we need to issue new Appointment Letters?

Yes. The OSH Code Central Rules 2025/26 make it mandatory to issue appointment letters to all employees (including existing ones who may not have received a formal one in the new prescribed format).

• Must include: Aadhaar number, UAN, specific work hours, and the nature of the "Workplace" (mention "Office and/or Remote" to cover your bases).

 

HR Action Checklist for Q1 2026

Task	Deadline	Status
Audit Wage Structure: Ensure Basic + DA $\ge$ 50% of total pay.	Jan 31, 2026	[ ]
Update Standing Orders: Include WFH and IT Misconduct clauses.	Feb 15, 2026	[ ]
Re-issue Appointment Letters: In the new prescribed format.	Feb 28, 2026	[ ]
Digital Detox Policy: Implement "Off-hour" communication rules.	Mar 15, 2026	[ ]

 

Disclaimer

This FAQ is for informational purposes only and does not constitute legal advice. Labour laws in India are subject to both Central and State-specific Rules. Employers are advised to consult with a registered Labour Law Consultant to ensure their specific Standing Orders and employment contracts are fully compliant with the latest notifications of 2026.