Employment & labour law in Hyderabad — your workforce is your most valuable asset. Protect it with legal precision.
Employment disputes are expensive, disruptive, and almost always preventable. SIRI Law LLP's employment practice designs the legal infrastructure that reduces employment disputes before they arise — and provides specialist advocacy when they do. From Labour Codes compliance and POSH frameworks to wrongful termination defence and digital-forensics-backed departure disputes.
The change most employment pages still haven't caught up with
The four Labour Codes are already in force. Most salary structures aren't.
India's employment law framework changed more in the past nine months than in the previous three decades. On 21 November 2025, the government notified four consolidated Labour Codes — the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code — folding 29 separate central statutes into a single framework. Final Central Rules followed on 8 May 2026, operationalising standards for wage calculation, working hours, safety, social security coverage, and industrial relations.
The single change with the most immediate payroll impact is what's commonly called the 50% wage rule: basic pay plus dearness allowance must now constitute at least half of an employee's total compensation. Most existing Indian salary structures were built to minimise the basic component and maximise allowances, precisely the opposite of what the new rule requires — which means PF contributions, gratuity accrual, bonus calculations, and leave encashment all shift, sometimes materially, once compensation is restructured to comply. This isn't a labelling exercise; it changes real cash obligations for employers and real take-home calculations for employees.
Against this backdrop, POSH compliance remains exactly as strict as it's always been, and recent Supreme Court commentary suggests enforcement is tightening rather than relaxing — the Court has directed states to ensure POSH compliance data is uploaded to the centralised SHe-Box portal, reinforcing that a fine of up to ₹50,000 under Section 26 is not the only consequence employers should be planning around; the reputational and licensing risk of a documented non-compliance record is often more costly than the statutory fine itself.
Where employment risk actually builds
Employment law failures are almost always preventable with the right contracts and compliance framework in place
These are the recurring patterns behind the disputes SIRI's employment practice handles most often.
Standard employment contracts create unlimited liability
Generic employment agreements contain silent liabilities — inadequate IP assignment, unenforceable non-competes, missing POSH obligations, and ambiguous termination provisions that create costly disputes.
POSH non-compliance creates personal liability
The Sexual Harassment of Women at Workplace Act 2013 imposes personal liability on employers and senior management for non-compliance. Penalties include fines and criminal prosecution, and enforcement scrutiny has intensified.
Non-compete and confidentiality clauses unenforceable
Indian courts apply a restrictive approach to post-employment non-competes. Agreements drafted without understanding this jurisprudence are routinely held unenforceable, providing no protection when they're needed most.
Mass layoff and restructuring legal risks
Workforce restructuring now requires compliance with the four Labour Codes alongside gratuity, PF, and sector-specific labour requirements. Getting this wrong exposes management to criminal liability and delays that outlast the intended savings.
What we cover
Employment and labour legal services across the full workforce lifecycle
From employment contract design and POSH compliance through workforce restructuring and labour dispute resolution.
Employment Contract Frameworks
Senior executive agreements, standard employment contracts, contractor agreements, ESOP documentation, IP assignment clauses, non-compete drafting calibrated to Indian enforceability standards.
- Standard and executive employment contracts
- Labour Code-compliant compensation structuring
- IP assignment and confidentiality clauses
- Non-compete drafting within enforceable limits
POSH Compliance & Advisory
Internal Complaints Committee constitution, POSH policy design, annual compliance management, ICC training, complaint investigation advisory, and defence representation in POSH proceedings.
- ICC constitution and annual compliance
- Policy design and awareness training
- Complaint investigation advisory
- Defence representation in POSH proceedings
Employment Dispute & Litigation
Wrongful termination claims, constructive dismissal, unfair labour practice proceedings, labour tribunal representation, and severance negotiation.
- Wrongful termination and constructive dismissal
- Unfair labour practice proceedings
- Labour tribunal representation
- Severance negotiation
Non-Compete & Confidentiality Enforcement
Non-compete enforceability assessment, injunction applications against departing employees, trade secret misappropriation proceedings, and team poaching litigation.
- Enforceability assessment before drafting
- Same-day injunction applications
- Trade secret misappropriation proceedings
- Team poaching litigation
Workforce Restructuring Advisory
Retrenchment compliance under the new Labour Codes, VRS design, standing orders, CLRA contractor management, and PF and gratuity obligations management for restructuring.
- Labour Code-compliant retrenchment process
- VRS design and standing orders
- CLRA contractor management
- PF and gratuity settlement
Executive Compensation & Separation
Senior executive employment terms, ESOPs, deferred compensation, retention bonuses, and separation agreement negotiation with confidentiality and IP provisions.
- Senior executive terms and ESOPs
- Deferred compensation structuring
- Separation agreement negotiation
- Post-employment restriction enforcement
Evidence, not guesswork
What the 50% wage rule actually changes — before and after
Most compensation structures were built under the old rules. Here's what genuinely shifts under the new Code on Wages.
| Component | Common pre-Code structure | Required under the Code on Wages |
|---|---|---|
| Basic pay + DA | Often minimised, sometimes below 30% of CTC | Must equal at least 50% of total remuneration |
| PF contribution base | Calculated on artificially low basic pay | Calculated on the higher, rule-compliant basic component |
| Gratuity accrual | Based on pre-restructuring basic pay | Increases in line with the higher basic pay base |
| Overtime pay | Varied by employer practice | Set at 2× normal wages under the codified standard |
| Working hours | Varied by state and sector | Standardised caps — 8 hours/day, 48 hours/week under central rules |
Sources: Code on Wages 2019 and Code on Wages (Central) Rules 2026, notified 8 May 2026; Ministry of Labour and Employment FAQs, 16 March 2026. State-level rules vary and may impose additional or different requirements — confirm applicable state rules before restructuring compensation.
What the numbers actually mean
Four figures that frame employment risk today
Maximum fine for a first offence — repeat violations double the fine and risk licence cancellation, under intensifying Supreme Court-driven enforcement.
Into the four new Labour Codes — a genuine simplification of the framework, but one requiring active restructuring, not passive relabelling.
Above which prior government permission is required for retrenchment under the Industrial Relations Code — a hard procedural gate for larger restructurings.
From instruction to grant in our employee data theft case study below — speed that only comes from forensic evidence ready before the court application is filed.
How we engage
Four stages from instruction to resolution
From employment legal audit through framework remediation, compliance management, and dispute resolution.
Employment legal audit
Review of existing employment contracts, POSH compliance status, HR policies, contractor frameworks, and Labour Code readiness, identifying specific gaps that create current liability exposure.
Week 1Framework remediation
Updated employment contract templates, Labour Code-compliant compensation structures, POSH policy and ICC constitution, and standing orders, producing a legally current, enforceable employment infrastructure.
Weeks 2–6Compliance management
Annual POSH compliance filing, labour law registration renewals, employment contract updates for regulatory changes, and HR advisory support throughout the year.
OngoingDispute management
Wrongful termination defence, POSH investigation management, non-compete enforcement, and labour tribunal representation, with the same counsel who designed your employment frameworks.
As neededCase study · Employee data theft
Technology company recovers proprietary database from departing senior employee
A Hyderabad technology company discovered a departing CTO had transferred proprietary customer data and source code to an external device before resignation. SIRI Law LLP's forensic team confirmed the data transfer within 24 hours, while our legal team obtained an Anton Piller order and injunction preventing disclosure or use.
The employee returned all data and signed a comprehensive settlement within 21 days — a resolution timeline made possible by having forensic evidence ready before the injunction application was even filed, rather than scrambling to gather it afterward.
Representative matters
Typical engagements
All matters described generically to protect client confidentiality.
IC inquiry and compliant report
Managed a complex POSH complaint investigation for a technology company, conducting the IC inquiry, producing a compliant report, and advising on the penalty. Resolved without litigation.
Fixed-term contract exit
Advised on the lawful termination of a senior executive under a fixed-term contract, managing notice period, severance negotiation, and post-employment restriction enforcement.
DPDPA-compliant screening framework
Advised a large employer on the legal compliance framework for an AI-powered CV screening tool, including DPDPA consent requirements and human review processes.
Statutory compliance for 40 workers
Advised on a statutory retrenchment process for 40 workers, ensuring compliance with notice, compensation, and government permission requirements now consolidated under the Industrial Relations Code.
Why SIRI
Employment law backed by cyber and data protection expertise
As workforces become increasingly digital, employment disputes increasingly involve digital evidence — email records, system access logs, device data, and DPDPA obligations around employee monitoring. SIRI is positioned to handle both dimensions.
Digital evidence in employment disputes
Wrongful termination, breach of confidentiality, and non-compete disputes increasingly turn on digital evidence. SIRI's forensic team preserves and analyses employee device data and email records under legal privilege.
POSH compliance that holds
ICC constitution that meets all POSH requirements, policy documentation that withstands scrutiny, and investigation procedures defensible to the appellate authority and courts.
Responsive to employment urgencies
Injunctions against departing employees with sensitive data access require same-day action. SIRI's litigation and forensic teams coordinate immediately when a high-risk employee departure is identified.
DPDPA + employee data management
Employee monitoring, device management, BYOD policies, and biometric attendance data all create DPDPA obligations. SIRI ensures your employee data practices comply with both employment law and DPDPA.
Frequently asked
Employment and labour law, answered directly
Are non-compete clauses enforceable in India?
Indian courts apply Section 27 of the Indian Contract Act 1872, which generally renders restraints of trade void. Post-employment non-competes face a very high bar — courts will only enforce them if they are narrowly drafted in scope, geography, and duration, and if there is a demonstrable protectable interest. SIRI designs enforceable restraint frameworks calibrated to current judicial standards.
What do India's four new Labour Codes actually change for employers?
The Code on Wages, the Industrial Relations Code, the Social Security Code, and the Occupational Safety, Health and Working Conditions Code were notified as effective law on 21 November 2025, consolidating 29 earlier central statutes, with final Central Rules notified on 8 May 2026. The most immediately consequential change is the 50% wage rule, which requires that basic pay plus dearness allowance make up at least half of total compensation, directly changing how PF, gratuity, bonus, and leave encashment are calculated. Most existing salary structures were not built around this rule and need restructuring, not just relabelling.
What does POSH compliance require from an employer?
The POSH Act requires constitution of an Internal Complaints Committee with at least 50% women members including an external member, a written anti-sexual harassment policy, annual awareness programmes, annual reports to the district officer, and a defined complaint, investigation, and redressal procedure. Non-compliance can result in fines up to ₹50,000 under Section 26, with repeat violations doubling the fine and risking licence cancellation, and the Supreme Court has recently pushed for stricter enforcement, including mandatory disclosure through the SHe-Box portal.
What are an employer's obligations during a mass retrenchment?
Employers with more than 100 workmen require prior government permission for retrenchment. Notice requirements, retrenchment compensation of 15 days' average pay per completed year of service, PF, gratuity, and ESIC settlement must all be managed, now within the consolidated framework of the Industrial Relations Code. SIRI manages the full retrenchment compliance programme.
What should we do when a departing employee may have taken data?
Act immediately, within hours. SIRI's immediate response covers forensic imaging of the employee's work devices before they are returned or wiped, email and system access log preservation, legal assessment of the breach, a letter before action, and court applications if required. Speed is critical — evidence quality degrades quickly once a device is back in normal use or returned to IT for reissue.
How should we handle employee monitoring under the DPDPA?
Employee monitoring, including email monitoring, device tracking, biometric attendance, and CCTV, creates DPDPA obligations requiring compliant consent, privacy notice, and proportionate monitoring. SIRI designs employee monitoring policies and BYOD frameworks satisfying both employment law requirements and DPDPA obligations.
The comparison
Without SIRI versus with SIRI
| Capability | Standard HR legal provider | SIRI Law LLP — employment + forensic |
|---|---|---|
| Employment contracts | Standard templates not calibrated to Indian enforceability standards or the new Labour Codes | Agreements designed for Indian enforceability, Labour Code compliance, and DPDPA monitoring obligations |
| POSH compliance | ICC constituted once and forgotten | Continuous POSH compliance programme with defensible investigation procedures |
| Departing employee disputes | Handled without digital forensics — losing the technical evidence needed for court applications | In-house forensic response preserved and certified under privilege, same day as instruction |
| Dispute continuity | Referred to a separate litigation firm unfamiliar with your HR history | Same counsel who designed your employment framework appears in your disputes |
Ready when you are
Employment disputes are expensive. The right employment infrastructure prevents them.
Book a confidential employment legal assessment with SIRI Law LLP. We will audit your current contracts, Labour Code readiness, POSH compliance, and HR policies, and design a framework that reduces your dispute exposure.
Related services
Other ways SIRI Law LLP supports growing companies
Data privacy & cybersecurity law
DPDPA compliance for employee monitoring, device management, and HR data.
Corporate & commercial law
M&A due diligence and contracts, with employment liability assessed inside every deal.
Startup & venture law
Founder agreements, ESOP structuring, and early-hire documentation.
Visit or contact us
SIRI Law LLP — Hyderabad, India
| Registered office | HITEC City, Madhapur, Hyderabad, Telangana 500081, India |
| Telephone | +91 79819 12046 |
| info@sirilawllp.com | |
| Other offices | New Delhi, India · Austin, Texas, USA · Online worldwide |
| Hours | Mon–Sat, 9:30 AM – 7:00 PM IST · Emergency line 24/7 |