Internal Audit of Procurement Process in Construction Companies

India's New Labour Codes: Key Changes and Audit Considerations

India has replaced twenty-nine central labour laws with four consolidated Codes, and the new regime is now live. The single change with the widest reach is a uniform definition of wages that, in effect, requires basic pay and dearness allowance to make up at least half of an employee's total remuneration. That one change flows through to provident fund, gratuity, bonus, leave encashment and the employee state insurance contribution, raising both cost and provisioning for many employers. Alongside it sit new rules on fixed-term employment, contract labour, working hours, social security for gig workers and a digitised, portal-based compliance architecture. For internal audit the task is twofold: to test the financial and payroll impact of the wage definition, and to check that the organisation's compliance, documentation and provisioning keep pace with the new framework during a transition in which several State Rules are still being finalised.