14/05/2026
Most labour law non-compliance does not begin with fraud.
It begins with “This should be fine.”
Here are 5 mistakes I repeatedly see organisations making under the evolving labour code framework:
1️⃣ Salary structures designed only for tax efficiency
But not reviewed against the revised wage definition framework.
2️⃣ Contractor compliance treated as the contractor’s problem
Without independent verification by the principal employer.
3️⃣ “Manager” designations used too casually
Even where actual supervisory powers are weak or absent.
4️⃣ Policies drafted once… and never updated
Despite major legislative restructuring through the Labour Codes.
5️⃣ Registers, returns and records maintained separately
Without checking whether all data actually matches.
Individually, these may appear minor.
Together, they create:
⚠ Inspection exposure
⚠ Employee disputes
⚠ Penalty risk
⚠ Credibility concerns during scrutiny
The biggest compliance mistake is assuming:
“No issue has happened yet, so we must be compliant.”
In labour law, delayed detection is common.
And by the time issues surface, correction becomes far more expensive than prevention.
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