FAQs on Key Accounting Implications Arising from the New Labour Codes

The accounting impact mainly relates to employee benefits and employee-related liabilities, including: 1. Wages and salary structure — implications of the revised definition of “wages”. 2. Gratuity — assessment of changes in gratuity obligations and actuarial valuation. 3. Leave encashment — accounting for accumulated compensated absences. 4. Bonus and other employee benefits — whether changes in statutory obligations create additional liabilities. Social-security contributions — accounting implications for employer obligations. 5. Provision and measurement of employee-benefit liabilities under the applicable Accounting Standards / Ind AS. 6. Financial-statement disclosures where the Labour Codes materially affect employee-benefit obligations.