AI-Generated Content in India: Key Considerations Under the IT Rules

Data Protection & Privacy Technology, ITES & Telecom

May 11, 2026

Narendra Jain Partner

Introduction

The use of artificial intelligence in creating and modifying content is now a routine part of business operations across sectors. Organisations increasingly use AI tools to prepare text, images, videos, presentations, educational materials, and marketing content. As this practice expands, regulatory attention has also increased, particularly around transparency and disclosure where content is artificially or synthetically generated. The recent amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 have brought renewed focus to these issues in the Indian context.

What Counts as Synthetically Generated Information

At a broad level, the amended framework addresses content that is created or significantly altered using artificial intelligence tools, machine learning systems, deepfake technology, or similar technologies in a manner that may make it difficult for an ordinary viewer to distinguish such content from naturally created material. The Rules refer to such content as "Synthetically Generated Information" and contemplate transparency measures around its dissemination on digital platforms.

The Labelling Requirement

One of the central themes emerging from the amended framework is labelling. In general terms, where AI-generated or AI-modified content is published on a digital platform, it is expected to be clearly and conspicuously identified in a manner that enables users to recognise it as such. The emphasis is on visibility, clarity, and platform-appropriate disclosure rather than hidden or purely metadata-based identification.

Implications for Businesses & Territorial Considerations

For businesses, this means that AI governance can no longer be treated purely as an internal technology issue. It increasingly intersects with legal, compliance, brand, and reputational considerations. Even where a particular organisation does not neatly fall within the core categories directly regulated under the Rules, the overall direction of the framework suggests that transparent disclosure of AI-generated content is becoming an important compliance and risk-management practice. A practical issue that often arises is whether obligations depend only on where content is viewed, or whether they may also be relevant where content is created or modified in India and later used elsewhere. While territorial questions can be complex and fact-dependent, the broader compliance trend points toward adopting consistent internal standards for identification of AI-generated content, particularly for organisations that create content for use across multiple jurisdictions and platforms.

The Role of Digital Platforms, Organizational Governance and SOPs

Another important consideration is the role of digital platforms. In many cases, platforms that host or distribute content have their own disclosure tools, content labelling features, and publication requirements. Where content is uploaded to such platforms, compliance may involve using the tagging or disclosure mechanisms built into the relevant service. As platform rules continue to evolve, organisations should ensure that internal teams are aware of platform-specific requirements at the time of publication. From a governance perspective, organisations should consider adopting internal policies or standard operating procedures dealing with the use of AI in content creation. Such frameworks can help address issues such as approved AI tools, review and approval processes, disclosure standards, accountability, training, and escalation protocols. A structured internal approach is often the most effective way to manage legal, operational, and reputational risks in this area.

Thoughts

The broader takeaway is that AI-content regulation is still developing, and enforcement expectations may continue to evolve. In this environment, transparency, internal controls, and platform-aware publication practices are likely to remain important. Organisations using AI for content creation should therefore keep their review processes under periodic assessment and remain attentive to further legal and regulatory developments.

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Ongoing Advisory for a GCC of a Motor Vehicle Components Manufacturer

Advisory, Corporate, DPDP GCC

The Context

A Global Capability Centre (GCC) of a leading motor vehicle components manufacturer engaged the Firm on a retainer basis for ongoing advisory on labour and employment matters, requiring consistent legal support across workforce policies and operational issues.

The Approach

We provided continuous, practical legal guidance across a range of workplace matters. Our approach included:

Advising on employment bonds, leave policies, and staffing arrangements
Reviewing and strengthening internal policies and frameworks
Guiding on workplace facilities, including canteen-related requirements
Supporting disciplinary and misconduct-related matters

The Outcome

The engagement enabled the client to:

Strengthen policy frameworks and workforce governance
Ensure alignment with applicable labour law requirements
Address workplace issues with clarity and consistency
Build a compliant and structured HR environment

Key Takeaways

Continuous Advisory Support

Ongoing engagement ensures consistency in handling workforce matters.

Policy-Led Governance

Well-defined policies strengthen organisational clarity and compliance.

Practical Legal Guidance

Business-aligned advice supports effective decision-making.

Proactive Issue Management

Early intervention helps mitigate risks in workplace matters.

Provident Fund Challenge for a Clothing Manufacturer

Advisory, Disputes Textile, Manufacturing

The Context

A major clothing manufacturer received notices alleging non-payment of contributions under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The situation escalated with the attachment of the company’s primary bank account, creating immediate operational and financial challenges.

The Approach

We advised and represented the client in challenging the government’s actions before the High Court of Karnataka. Our approach included:

Assessing the validity of the notices and enforcement actions
Formulating a legal strategy to challenge the attachment and proceedings
Representing the client before the High Court
Seeking urgent interim relief to protect business operations

The Outcome

The client secured immediate relief with:

Stay of the proceedings granted by the High Court
Restoration of operational continuity by addressing account attachment concerns
Strengthened legal position pending final adjudication

The matter is currently pending before the High Court of Karnataka.

Key Takeaways

Immediate Legal Intervention

Timely action is critical in matters involving coercive recovery measures.

Protecting Business Continuity

Securing interim relief helps minimise operational disruption.

Statutory Challenge Strategy

Careful evaluation of enforcement actions strengthens defence.

Litigation Preparedness

Strong representation ensures effective handling of ongoing proceedings.

POSH Appeal Defence for a Multinational Technology Company

POSH Manufacturing, IT

The Context

A multinational computer hardware manufacturer faced an appeal under the POSH Act following an Internal Committee finding that dismissed allegations of sexual harassment. The appeal raised multiple procedural and substantive challenges, further complicated by the time gap between the original inquiry and the appellate proceedings.

The Approach

We advised and represented the client through the appellate process with a structured legal strategy. Our approach included:

Reviewing the Internal Committee findings and procedural compliance
Reconstructing facts and documentation for an older matter
Advising on responses to allegations on both procedural and substantive grounds
Representing the client before the statutory appellate authority

The Outcome

The client successfully defended the appeal with:

Affirmation of the Internal Committee’s findings
Dismissal of the appellant’s claims
Strengthened legal position and procedural defensibility
Closure of a complex and sensitive matter

Key Takeaways

Importance of Procedural Integrity

Strong adherence to POSH processes supports defensibility at the appellate stage.

Managing Legacy Cases

Reconstructing facts in older matters requires structured documentation and strategy.

Effective Appellate Representation

Clear legal positioning across procedure and merits drives favourable outcomes.

Sensitivity in Workplace Matters

Balanced handling ensures fairness while protecting organisational interests.

Labour Law Audit for an Engine Manufacturer

Audit Automobile, Manufacturing

The Context

A large engine manufacturer commissioned a one-time labour law audit across its manufacturing units to assess compliance with statutory requirements and identify operational risks. The review revealed significant gaps, particularly around working hours and mandatory rest periods for both direct and contract workers.

The Approach

We conducted a detailed audit focused on statutory compliance and workforce practices. Our approach included:

Reviewing working hours, overtime, and rest period practices
Assessing compliance across direct employees and contract workforce
Identifying deviations from statutory requirements
Recommending corrective actions to address non-compliances

The Outcome

The client was able to:

Identify and address critical compliance gaps
Align working hours and rest periods with statutory requirements
Implement corrective measures for overtime and holiday payments
Strengthen compliance and reduce regulatory exposure

Key Takeaways

Workforce Practices Require Regular Review

Audits help uncover systemic gaps in working conditions.

Statutory Compliance is Critical

Adherence to working hours and rest periods is essential for legal and operational stability.

Clear Corrective Actions Matter

Actionable recommendations enable timely remediation.

Proactive Risk Management

Early intervention reduces legal and financial exposure.

Defamation Action for a Pharmaceutical Client

Advisory, Corporate, Disputes Pharmaceuticals

The Context

A large pharmaceutical company faced reputational challenges when a senior employee made false allegations against senior management and published defamatory content across multiple social media platforms. Despite internal investigations disproving the claims, the posts continued, escalating the issue.

The Approach

We advised and represented the client through a structured legal response. Our approach included:

Assessing the allegations and legal implications of the defamatory content
Issuing cease and desist notices to the individuals involved
Engaging with social media platforms for removal of offending content
Developing a strategy to protect the client’s reputation and legal position

The Outcome

The client successfully addressed the situation with:

Removal of defamatory content from social media platforms
Cessation of further allegations by the individuals involved
Protection of organisational reputation and leadership credibility
Effective resolution without prolonged litigation

Key Takeaways

Reputation Risk Management

Timely legal action is critical in addressing reputational threats.

Multi-Channel Response

Handling defamation requires coordinated action across legal and digital platforms.

Strategic Escalation

Progressive steps-from notices to enforcement-enable controlled resolution.

Protecting Leadership Integrity

Swift response helps safeguard organisational trust and credibility.

Comprehensive Labour & Environmental Compliance Audit

Audit Automobile, Manufacturing

The Context

A global manufacturing network with multiple factories and subsidiaries across India required a comprehensive audit of its labour and environmental compliance practices. The engagement involved assessing statutory adherence, workplace safety, and governance across operations and vendor ecosystems.

The Approach

We conducted an extensive, multi-layered audit combining on-ground assessments with detailed analysis. Our approach included:

Stakeholder consultations and on-site verification of statutory records and registers
Review of compliance with key labour laws, including the Factories Act, and environmental regulations
Evaluation of health, safety, and environmental practices across units
Assessment of vendor management systems and supply chain governance
Worker interactions and walkthroughs to assess real-world implementation

The Outcome

The engagement enabled the client to:

Identify compliance gaps with clear, actionable recommendations
Establish a standardised and future-ready compliance framework
Enhance transparency across operations and vendor networks
Significantly reduce legal and operational risks
Strengthen workplace safety and sustainable practices

Key Takeaways

Holistic Compliance Assessment

Comprehensive audits must cover operations, workforce, and vendor ecosystems.

Ground-Level Validation

On-site verification and worker interactions provide critical practical insights.

Actionable Recommendations

Clear, tailored inputs enable effective corrective measures.

Sustainable Compliance Frameworks

Standardisation improves long-term governance and operational resilience.

Advisory on Closure of Manufacturing Facility

Disputes, Advisory, Corporate Manufacturing, FMCG

The Context

A large food manufacturing company undertook the closure of one of its factories in Bengaluru. The matter involved navigating complex labour law requirements, obtaining statutory approvals, and addressing workforce challenges, including employee strikes and union resistance.

The Approach

We provided end-to-end legal advisory and representation throughout the closure process. Our approach included:

Structuring a legally compliant closure process aligned with statutory requirements
Guiding the client through documentation and approval procedures
Representing the client before authorities and courts in union-led challenges
Advising on employee compensation and statutory benefits
Supporting the client in managing industrial actions in accordance with law

The Outcome

The client successfully executed the closure with:

Approval granted by the Specified Authority for closure
Successful defence against union challenges before the High Court (Single Judge and Division Bench)
Resolution of employee-related issues, including strikes
A structured and compliant framework for employee separation and benefits

Key Takeaways

Regulatory Approval is Critical

Closure of manufacturing units requires strict adherence to statutory processes.

Managing Industrial Action

Effective legal strategy is essential to navigate strikes and union challenges.

Strong Litigation Support

Representation across forums ensures protection of business decisions.

Balanced Workforce Transition

Clear guidance on compensation and benefits enables smoother employee separation.

Large-Scale Investigation into Employee Fraud

Investigations GCC, BFSI

The Context

A multinational financial institution faced allegations of widespread financial misconduct involving a large number of employees. The scale and urgency of the matter required a structured, coordinated investigation process to address risks and enable timely action.

The Approach

We led the investigation through a team of experienced advocates, managing the process end-to-end. Our approach included:

Conducting investigations across a large pool of employees
Coordinating with multiple departments for access to documents and stakeholders
Structuring schedules and processes to handle scale efficiently
Preparing detailed investigation reports within defined timelines
Advising on appropriate disciplinary actions based on findings

The Outcome

The client successfully addressed the matter with:

Timely completion of investigations across several hundred employees
Clear identification of misconduct and responsible individuals
Implementation of appropriate disciplinary actions
Controlled risk exposure and preservation of organisational integrity

Key Takeaways

Managing Scale in Investigations

Structured processes are critical when handling large volumes of cases.

Cross-Functional Coordination

Effective collaboration ensures timely and accurate outcomes.

Timely Action Matters

Swift investigation and response help mitigate financial and reputational risks.

Defensible Outcomes

Well-documented findings support strong disciplinary decisions.

POSH Inquiry Involving Senior Leadership

POSH Garments, Manufacturing

The Context

A large clothing manufacturer faced complaints of sexual harassment against a senior executive, raised by two employees. The matter was sensitive, involving serious allegations and concerns of retaliation, requiring a careful, compliant, and confidential approach under the POSH Act.

The Approach

An External Member from the Firm was part of the Internal Committee constituted under the POSH Act. We provided end-to-end advisory throughout the inquiry process. Our approach included:

Guiding the Internal Committee on procedural compliance and fair inquiry processes
Advising on interim measures to safeguard the complainants
Ensuring confidentiality and protection against retaliation
Recommending appropriate disciplinary actions based on findings

The Outcome

The matter was successfully concluded with:

A fair and legally compliant inquiry process
Substantiation of complaints based on thorough evaluation
Appropriate disciplinary action against the respondent
Restoration of employee confidence and trust in the organisation

Key Takeaways

Sensitivity & Confidentiality

Handling such matters requires a balanced and discreet approach.

Procedural Integrity

Strict adherence to POSH processes ensures fairness and defensibility.

Workplace Safety Focus

Timely interim measures are critical to protect complainants.

Organisational Impact

Decisive action reinforces trust and fosters a safe working environment.

Challenge to International Worker Provisions under EPF Scheme

Disputes Education

The Context

The client challenged provisions under the Employees’ Provident Fund Scheme and Pension Scheme that required higher provident fund contributions for international workers compared to domestic employees. This created an unequal framework and imposed a significant financial burden on employers, while also impacting take-home pay for international workers.

The Approach

We represented the client in challenging the validity of these provisions before the High Court of Karnataka. Our approach included:

Developing a constitutional and statutory challenge to the differential treatment
Arguing against the lack of a rational basis for higher contribution requirements
Highlighting the financial and operational impact on employers and employees
Presenting a structured legal strategy focused on equity and regulatory consistency

The Outcome

The High Court of Karnataka struck down the relevant provisions, resulting in:

Removal of differential treatment between international and domestic workers
Reduction in employer liability by aligning contributions with standard wage limits
Improved take-home pay for international workers
A significant precedent impacting labour law compliance for employers

The judgment has been challenged by the EPFO; however, as of March 2026, the appeal is pending with no stay on the original order.

Key Takeaways

Constitutional Validity Matters

Differential treatment must have a clear legal and rational basis.

Financial Impact of Regulation

Regulatory provisions can significantly affect employer costs and workforce compensation.

Strategic Litigation

Well-structured challenges can reshape regulatory frameworks.

Precedent-Setting Outcome

Judicial decisions can have wide-ranging implications across industries.

Advisory & Representation for a Public Sector Bank

Disputes Banking

The Context

A leading public sector bank engaged the Firm for advisory and representation in multiple labour and employment law matters. The engagement involved complex litigation, including issues relating to statutory liabilities under the Employees’ Provident Funds and Miscellaneous Provisions Act.

The Approach

We provided strategic legal support across advisory and litigation matters. Our approach included:

Representing the client before the Central Government Industrial Tribunal and the High Court of Karnataka Advising on statutory obligations, including matters under the EPF Act Developing consistent legal strategies across multiple proceedings Supporting the client through complex and high-stakes labour disputes
Evaluating existing practices against the new legal framework
Advising on alignment with union settlements and operational realities
Supporting a structured transition from legacy laws to the new regime

The Outcome

The engagement enabled the client to:

Effectively manage and defend complex litigation matters
Ensure alignment with statutory requirements and legal obligations
Strengthen its legal position across forums
Navigate regulatory and workforce-related challenges with confidence

Key Takeaways

Multi-Forum Representation

Effective handling across tribunals and courts ensures consistency in legal strategy.

Statutory Expertise

Deep understanding of labour laws is critical in managing regulatory liabilities.

Strategic Litigation Approach

Coordinated advisory strengthens outcomes in complex disputes.

Trusted Legal Partnership

Ongoing support enables proactive management of legal risks.

Advisory on Organisational Restructuring for an IT Services Provider

Advisory, Corporate, DPDP IT

The Context

An Indian IT services provider engaged the Firm for long-term advisory on structuring its organisation to align with its business model, improve operational efficiency, and meet labour law requirements. The engagement evolved to include restructuring of operations and subsequent merger-related integration.

The Approach

We provided ongoing strategic and legal support across multiple phases of the engagement. Our approach included:

Advising on organisational structuring aligned with business and operational needs
Ensuring alignment with applicable labour and employment laws
Supporting restructuring of operations to enhance efficiency
Guiding the client through merger processes and integration of workforce structures

The Outcome

The client successfully achieved:

An optimised organisational structure aligned with its business objectives
Smooth execution of restructuring initiatives
Seamless integration during merger with another organisation
Sustained compliance and operational efficiency across evolving business needs

Key Takeaways

Long-Term Strategic Advisory

Continuous engagement enables alignment with evolving business requirements.

Business-Aligned Structuring

Legal frameworks must support operational efficiency and scalability.

Seamless Transition Management

Structured approach ensures smooth restructuring and integration.

Integrated Legal & Operational Insight

Combining legal expertise with business understanding drives effective outcomes.

Ongoing Advisory for a Multinational Motor Vehicle Manufacturing Group

Advisory, Corporate, DPDP Automobile, Manufacturing

The Context

A multinational motor vehicle manufacturing group engaged the Firm for ongoing advisory on labour and employment matters across its operations. The engagement involved complex workforce issues, including union negotiations, wage settlements, and integration challenges arising from mergers.

The Approach

We provided continuous legal and strategic support across a wide range of matters. Our approach included:

Advising on union-related matters and wage settlements
Guidance on terminal benefits and social security obligations
Supporting disciplinary and misconduct-related issues
Advising on employee integration during mergers and organisational changes

The Outcome

The long-standing engagement enabled the client to:

Navigate complex labour and workforce challenges effectively
Maintain stability in industrial relations across operations
Ensure alignment with statutory requirements and organisational goals
Successfully manage workforce transitions during structural changes

Key Takeaways

Long-Term Advisory Value

Sustained engagement enables consistent and strategic decision-making.

Industrial Relations Expertise

Effective handling of unions and settlements is key to operational stability.

Workforce Transition Management

Careful planning ensures smooth integration during mergers.

Holistic Legal Support

Integrated advisory across multiple areas strengthens overall workforce governance.

Ongoing Advisory for a Multinational Software Company

Advisory

The Context

A leading India-based multinational software company engaged the Firm for ongoing advisory and representation on a wide range of labour and employment matters. The engagement spans complex workforce issues, regulatory requirements, and evolving legal frameworks.

The Approach

We provided continuous, strategic support across advisory and litigation matters. Our approach included:

Advising on union-related matters and workforce dynamics
Guidance on contract labour, social security, and Labour Codes
Supporting clients on misconduct, disciplinary actions, and workplace issues
Handling litigation and regulatory matters with a consistent legal strategy

The Outcome

The long-standing engagement has enabled the client to:

Navigate complex labour and employment challenges with confidence
Ensure alignment with evolving legal and regulatory requirements
Effectively manage disputes and workforce-related risks
Build a stable and compliant workforce framework

Key Takeaways

Continuous Legal Partnership

Ongoing advisory ensures consistency and proactive issue resolution.

Multi-Dimensional Expertise

Handling advisory and litigation together strengthens overall outcomes.

Adaptability to Evolving Laws

Regular guidance supports compliance with changing regulatory frameworks.

Long-Term Value Creation

Sustained engagement builds trust and strengthens organisational resilience.

Annual Labour Law Compliance Audits for an Automobile Manufacturer

Audit Automobile, Manufacturing

The Context

A leading automobile manufacturer engaged the Firm to conduct recurring annual labour law compliance audits at its large-scale manufacturing facility in Karnataka. The audits required detailed on-ground assessments of operations, contractor practices, and adherence to statutory obligations under key labour laws.

The Approach

We conducted comprehensive, technology-enabled audits combining physical inspections with structured analysis. Our approach included:

On-ground review of factory operations and workforce practices
Detailed assessment of contractor and vendor compliance
Verification of licences, registrations, and statutory records
Use of in-house audit software to generate structured audit reports

The Outcome

The client benefited from a robust and evolving compliance framework with:

Identification and mitigation of legal and operational risks
Enhanced transparency in labour practices across operations
Improved readiness for regulatory inspections and changes
Strengthened alignment with best practices in worker welfare and governance

Key Takeaways

Proactive Compliance Approach

Regular audits help identify gaps early and reduce long-term risks.

Technology-Enabled Processes

Digital audit tools enhance accuracy, consistency, and reporting.

End-to-End Visibility

Comprehensive reviews across contractors and operations ensure holistic compliance.

Sustainable Compliance Framework

Ongoing audits build a strong foundation for regulatory readiness and organisational growth.

Advisory on Labour Codes for a Public Sector Enterprise

Labour Codes, Advisory Defence, Manufacturing

The Context

The client, a leading public sector defence manufacturer with operations across multiple locations in India, undertook the transition to the new Labour Codes. The complexity was heightened by varying state-specific requirements and existing union settlements across different units.

The Approach

We provided comprehensive advisory on implementing the Labour Codes across the client’s nationwide operations. Our approach included:

Assessing applicability across multiple offices and manufacturing units
Evaluating existing practices against the new legal framework
Advising on alignment with union settlements and operational realities
Supporting a structured transition from legacy laws to the new regime

The Outcome

The client successfully transitioned to the new framework with:

Consistent implementation across all locations
Alignment with statutory requirements and existing agreements
Minimal disruption to operations and workforce management
A clear, standardised compliance framework for future operations

Key Takeaways

Multi-Location Complexity

Large-scale operations require tailored strategies across jurisdictions.

Integration with Existing Agreements

Alignment with union settlements is critical for smooth implementation.

Structured Transition Approach

Phased and well-planned execution ensures operational continuity.

Consistent Compliance Framework

Standardisation across units strengthens long-term governance.

Defence in Employee Termination Proceedings

Disputes, Advisory Manufacturing, Aerospace

The Context

The client faced a civil suit filed by an employee seeking an injunction against termination following disciplinary proceedings, along with claims for damages. Parallel proceedings were also initiated before the Labour Department seeking reinstatement and related reliefs, creating a multi-forum legal challenge.

The Approach

We advised the client on a coordinated legal strategy across all proceedings. Our approach included:

Developing a consistent defence strategy across civil and labour forums
Advising on positioning and responses in disciplinary and legal proceedings
Managing parallel litigation to ensure alignment and minimise risk
Providing ongoing strategic guidance at each stage of the matter

The Outcome

The matter was successfully resolved with:

Dismissal of claims through effective defence strategy
Withdrawal of the civil suit by the employee
No adverse impact on the client’s position
Strengthened legal standing across related proceedings

Key Takeaways

Multi-Forum Strategy

Coordinated approach across civil and labour proceedings is critical for consistency.

Strong Defence Positioning

Clear legal strategy helps mitigate risks in employment disputes.

Effective Litigation Management

Handling parallel proceedings ensures controlled and aligned outcomes.

Strategic Resolution

Well-planned defence can lead to early and favourable closure of disputes.

Restructuring of Group Operations in India

Corporate, Advisory GCC, ITES

The Context

The client undertook a restructuring of its group operations in India, involving the transfer of employees across multiple entities within the organisation. The process required careful evaluation of legal feasibility across different employee categories, along with alignment to employment contracts and statutory requirements.

The Approach

We advised the client on the end-to-end employee transfer process as part of the restructuring exercise. Our approach included:

Assessing feasibility of transferring employees across various grades
Reviewing employment contracts and applicable legal provisions
Structuring the transfer process in compliance with regulatory requirements
Providing step-by-step guidance along with required documentation

The Outcome

The client successfully implemented the restructuring with:

Seamless transfer of employees across group entities
Full alignment with contractual and legal requirements
Minimal operational disruption during the transition
A structured and compliant framework for future organisational changes

Key Takeaways

Legal Feasibility Assessment

Evaluating employee categories and contractual terms is critical for smooth transfers.

Structured Implementation

A step-by-step approach ensures clarity and reduces execution risks.

Compliance-Led Strategy

Alignment with legal requirements is essential for sustainable restructuring.

Documentation & Process Clarity

Well-prepared documentation supports seamless execution and future scalability.

Closure of Pharma Manufacturing Facility

Advisory, Corporate and Commercial Pharmaceuticals

The Context

Our client, a leading pharmaceutical manufacturer, undertook the closure of a manufacturing facility in Bengaluru. The situation was complex, as the closure coincided with ongoing wage negotiations with the workers’ union, creating potential risks of industrial unrest and operational disruption.

The Approach

We provided end-to-end advisory throughout the closure process, guiding the client at every stage. Our approach included:

Strategic guidance on the legal and procedural aspects of closure
Advisory on structuring a voluntary retirement scheme (VRS)
Support in navigating ongoing wage negotiations with the union
Ensuring alignment with statutory requirements and workforce considerations

The Outcome

The client successfully executed the closure with:

A smooth and structured transition process
No industrial action or disruption from employees
Mutually agreeable separation terms for the workforce
Preservation of organisational reputation and stakeholder confidence

Key Takeaways

Strategic Workforce Planning

Careful planning is critical when closure overlaps with union negotiations.

Balanced Negotiation Approach

Well-structured VRS and negotiation strategies help achieve amicable outcomes.

Risk Mitigation

Proactive legal guidance minimises the risk of industrial unrest.

Dignified Separation

A structured and empathetic approach ensures fair outcomes for all stakeholders.

Labour Codes Transition Advisory for Multiple Organisations

Labour Code Services

The Context

The Government of India consolidated 29 labour legislations into four Labour Codes, operational from November 2025. These reforms significantly impact the entire employment lifecycle, requiring organisations to realign wage structures and policies to avoid financial and regulatory exposure.

The Approach

We supported organisations across India in navigating this transition, while also contributing to the drafting of Rules under the Labour Codes with the Government of Karnataka. Our approach included:

Assessing wage structures and HR policies against new legal requirements
Identifying gaps and areas requiring restructuring
Advising on policy and wage alignment with minimal financial impact
Supporting implementation across organisations of varying scale

The Outcome

We have successfully advised over 70 organisations, ranging from 60 to 50,000+ employees, resulting in:

Alignment with the new Labour Codes framework
Optimised wage structures and policies
Reduced financial exposure through strategic restructuring
Improved readiness for regulatory implementation and scrutiny

Key Takeaways

Wide-Ranging Regulatory Impact

The Labour Codes affect all aspects of the employment lifecycle.

Strategic Cost Optimisation

Proactive restructuring helps manage financial implications effectively.

Scalable Implementation

Solutions must adapt to organisations of different sizes and complexities.

Expertise-Driven Advisory

Deep understanding of legacy laws and new frameworks enables clear, outcome-focused solutions.