Labour Law Consultant in Ahmedabad: Labour Codes, Gujarat Compliance and Gratuity Liability

In short: Marcken Consulting LLP is the labour law consultant in Ahmedabad for employers who want the four Labour Codes, the Gujarat rules and portals, and the wage, gratuity and contribution rules applied correctly from a single accountable firm. Led by CA Murli Chandak, Marcken Consulting LLP brings the compliance position, the payroll numbers and the accounting impact together in one engagement, from first review to final report.

1. What a Labour Law Consultant in Ahmedabad Does

Marcken Consulting LLP advises Ahmedabad employers on how employment statutes apply to their workforce, payroll and establishments, and then helps them put that advice into working practice. The engagement covers five areas:

1. Mapping which Code, rule and state law applies to each establishment, factory or office.
2. Reviewing the salary structure against the statutory wage definition.
3. Quantifying gratuity and leave obligations and supporting the accounting entries.
4. Reviewing registrations, registers, returns and contributions across the central and Gujarat portals.
5. Conducting labour due diligence before a transaction, funding round or listing.

Marcken Consulting LLP delivers all five through one Chartered Accountant-led team, so the legal reading, the payroll arithmetic and the financial statement impact are settled together and the client deals with a single point of accountability.

2. The Four Labour Codes at a Glance

Code	Subject	What an Ahmedabad employer should check
Code on Wages, 2019	Wage definition, minimum wages, payment of wages, bonus	Salary structure against the wage definition and the 50 per cent rule
Industrial Relations Code, 2020	Standing orders, retrenchment, closure, fixed-term employment, disputes	Standing orders, contract terms and exit processes
Code on Social Security, 2020	Provident fund, ESI, gratuity, maternity benefit	Contribution base, gratuity liability and coverage
OSH and Working Conditions Code, 2020	Registration, safety, health, working hours, welfare	Registration, licences and Gujarat OSHWC Rules, 2025

The Codes distinguish between the central government and the state government as the appropriate government for different establishments. Identifying the correct appropriate government for each unit is the first step in any compliance review, and it decides which rules, portals and inspectors apply.

3. The Wage Definition and the 50 Per Cent Rule

The Code on Wages, 2019 defines wages in Section 2(y), and the Code on Social Security, 2020 carries a parallel definition in Section 2(88). The definition includes basic pay, dearness allowance and retaining allowance, and excludes listed components. Where the excluded components exceed 50 per cent of total remuneration, the excess is added back to wages. The Ministry of Labour and Employment issued clarifications on this point in its FAQs dated 16 March 2026.

The consequence is practical. Many Ahmedabad employers have historically kept the basic component low and the allowances high. After the Codes, the wage figure that drives gratuity, and the other benefits linked to wages, can rise even when the employee’s total pay is unchanged. A review of the salary structure is therefore the most valuable single exercise an employer can do. Marcken Consulting LLP reviews each salary structure against the definition and quantifies the effect before payroll is changed.

4. Gratuity Under the Code on Social Security: A Worked Example

Gratuity is governed by Sections 53 to 58 of the Code on Social Security, 2020. The standard calculation is last drawn wages multiplied by 15 divided by 26, multiplied by completed years of service. A fixed-term employee becomes eligible for gratuity after one year of service.

The illustration below shows why the wage definition matters. It is arithmetic only, and it assumes total monthly remuneration of Rs 1,00,000, a basic component of Rs 30,000 and excluded components of Rs 70,000, with ten years of service.

Item	Earlier basis	50 per cent rule applied
Monthly wages for gratuity	Rs 30,000	Rs 50,000 (Rs 70,000 excluded less Rs 50,000 permitted = Rs 20,000 added back)
Gratuity for 10 years (15/26 formula)	about Rs 1,73,077	about Rs 2,88,462
Increase	–	about Rs 1,15,385 (about 66.7 per cent)

Across a workforce, that difference becomes a material liability. Marcken Consulting LLP runs this calculation employee by employee and reports the aggregate to management.

5. Accounting Impact: The Chartered Accountant Advantage

A higher gratuity obligation is also an accounting matter. The ICAI Accounting Standards Board FAQs on the Labour Codes treat an increase in the gratuity obligation as past service cost under Ind AS 19, recognised immediately in profit or loss. Leave obligations are likewise recognised immediately, the change is treated as a non-adjusting event for earlier periods, and deferred tax and tax deduction follow the payment basis.

This is where a Chartered Accountant-led engagement adds value. The same team that quantifies the liability prepares the entries, coordinates the actuarial inputs and supports the statutory auditor. For related financial work, see our guides on Virtual CFO services in Ahmedabad and the GST consultant in Ahmedabad, and the ICAI’s own material at icai.org.

6. Gujarat and Ahmedabad Specifics

Employers in Ahmedabad must read the Central Codes together with Gujarat’s own rules and portals. The points below are the ones currently most relevant:

1. Gujarat OSHWC Rules, 2025. These rules, published in the Gujarat Gazette Extraordinary (No. 87), implement the OSH and Working Conditions Code in the state.
2. Shram Setu portal. Gujarat’s labour portal, on which the Ahmedabad Division issued a notice dated 27 August 2026. Employers should confirm their registrations and filings on the portal.
3. Gujarat Shops and Establishments (Amendment) Act, 2026. The amendment introduces a threshold of 20 for applicability. Marcken Consulting LLP confirms the position for each establishment against the text of the Act.
4. Gujarat Labour Welfare Fund. The state contribution continues alongside the central schemes, and the rates and due dates should be confirmed with the Gujarat Labour Welfare Board each year.

7. Recent Changes in EPF and ESI Coverage

Item	Position	Reference
EPF wage ceiling	Rs 25,000 from 17 September 2026	S.O. 5109(E)
ESI wage ceiling	Rs 21,000	ESIC notification
ESIC coverage	Full coverage of Ahmedabad and 30 other districts from 1 October 2026	S.O. 5310(E)

Employers should read the current notices on the EPFO website and the ESIC website, and the Code texts and rules on the Ministry of Labour and Employment website. Marcken Consulting LLP converts each change into a payroll and contribution impact for the client’s workforce.

8. Labour Due Diligence for Transactions, Funding and Listing

Labour liabilities frequently surface during a financing, merger or listing. A buyer or investor will ask about wage structures, gratuity provisions, contract labour and statutory dues. Marcken Consulting LLP prepares the labour section of a due diligence file and links it to the financial work, including business valuation, IPO readiness and merger exchange ratio engagements. Investors and acquirers value a clean, quantified labour position, and an early review gives management time to correct issues before they affect price.

9. Why Marcken Consulting LLP Is the Right Labour Law Consultant in Ahmedabad

Marcken Consulting LLP is the dedicated labour law consultant in Ahmedabad for employers who want one firm accountable for the legal reading, the numbers and the accounts. It is led by CA Murli Chandak:

1. One team for law, numbers and accounts. The legal reading, payroll quantification and Ind AS 19 treatment are handled together.
2. Current to the latest notifications. The review reflects the Codes, the May 2026 Central Rules, Gujarat rules and the latest EPF and ESI notices.
3. Quantified output. Management receives rupee figures and a clear action list, not a general opinion.
4. Ahmedabad presence. Marcken Consulting LLP works with employers across the city and Gujarat from its Navrangpura office. See also choosing a CA in Ahmedabad.

10. Our Process

1. Scoping. Identify establishments, headcount, salary structures and the appropriate government for each unit.
2. Review. Test the wage definition, registrations, registers, returns and contributions.
3. Quantification. Compute the gratuity and leave impact and the contribution effect.
4. Accounting support. Prepare the Ind AS 19 inputs and coordinate with the auditor.
5. Action plan. Deliver a prioritised remediation list with owners and timelines.

11. Fees

Fees depend on headcount, the number of establishments and the scope selected. Marcken Consulting LLP issues a written scope and fee proposal after a short discussion of the requirement. The first consultation is free.

12. Related Services

• Virtual CFO Services in Ahmedabad
• GST Consultant in Ahmedabad
• Business Valuation Consultant in Ahmedabad
• IPO Consultant in Ahmedabad
• Impairment Testing Under Ind AS 36

13. Quick Reference Checklist

1. Identify the appropriate government (central or Gujarat) for each establishment.
2. Test every salary structure against the wage definition and the 50 per cent rule.
3. Recompute gratuity on the revised wage base.
4. Confirm the Ind AS 19 treatment of the increase with the auditor.
5. Check registrations and filings under the Gujarat OSHWC Rules, 2025 and on the Shram Setu portal.
6. Apply the EPF ceiling of Rs 25,000 and ESI ceiling of Rs 21,000, and confirm ESIC coverage from 1 October 2026.
7. Confirm Gujarat Shops and Establishments applicability and Labour Welfare Fund remittances.

14. Frequently Asked Questions

1. What does Marcken Consulting LLP do as a labour law consultant in Ahmedabad?

Marcken Consulting LLP advises on the applicable Codes and state laws, reviews salary structures and registrations, quantifies statutory liabilities, prepares the accounting inputs and supports transactions.

2. Which labour laws apply to an Ahmedabad employer in 2026?

The four Labour Codes in force from 21 November 2025, the Central Rules notified in May 2026, the Gujarat rules and the relevant state laws such as the Gujarat Shops and Establishments law.

3. What is the 50 per cent wage rule?

Where excluded components exceed 50 per cent of total remuneration, the excess is added back to wages under the definition in the Code on Wages and the Code on Social Security.

4. How is gratuity calculated under the Code on Social Security?

Last drawn wages multiplied by 15 divided by 26, multiplied by completed years of service, under Sections 53 to 58 of the Code.

5. Are fixed-term employees entitled to gratuity?

Yes. A fixed-term employee becomes eligible for gratuity after one year of service.

6. How is an increase in gratuity treated in the accounts?

The ICAI Accounting Standards Board FAQs treat it as past service cost under Ind AS 19, recognised immediately in profit or loss.

7. What is the current EPF wage ceiling?

Rs 25,000 from 17 September 2026 under S.O. 5109(E).

8. What is the ESI wage ceiling and where has coverage expanded?

The ESI wage ceiling is Rs 21,000. ESIC coverage extends fully to Ahmedabad and 30 other districts from 1 October 2026 under S.O. 5310(E).

9. Can Marcken Consulting LLP support labour due diligence?

Yes. Marcken Consulting LLP prepares the labour section of due diligence for funding, mergers and listings and links it to the financial analysis in the same engagement.

10. How do I start?

Write to crm@marckenconsulting.com, call +91 99980 59923 or message on WhatsApp, and Marcken Consulting LLP will confirm the scope and fee in writing.

Disclaimer: This article is for general information and reflects the position as of November 2026. The worked example is illustrative arithmetic and not advice on any specific employee or entity. Application of the Labour Codes depends on facts, and notifications may change. Please obtain advice specific to your situation before acting.