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Labour Codes in Telangana: State Rules and Transition for Employers

How the Labour Codes apply in Telangana — the role of state rules, what continues in the meantime, and practical transition steps for Hyderabad and Telangana employers.

Think Filing Team30 September 2026 2 min read

Labour is a concurrent subject, so both the central government and the states make rules under the Labour Codes. For Telangana employers, the state's rules decide many practical details. This guide explains the position and what to do.

Why State Rules Matter

For many establishments — particularly those in the private sector not under central government control — the state government is the 'appropriate government' under the Codes. State rules cover registrations, registers, returns, working hours, shops and establishments, and more.

The Current Position

The Codes came into force nationally from 21 November 2025. Telangana, like other states, has been framing and finalising its rules under the Codes. During the transition, existing rules and schemes continue to apply to the extent they're consistent with the Codes. Check the latest Telangana notifications before changing practices.

What's Settled Regardless of State Rules

  • The uniform definition of wages and the 50% rule.
  • Gratuity for fixed-term employees after one year.
  • Timely payment of wages, including on exit.
  • Appointment letters for employees.

Areas to Watch in Telangana

  • Working hours and overtime rules for shops and establishments.
  • Night shift rules and safeguards for women employees.
  • Factory thresholds and licensing for manufacturing units.
  • Contract labour licensing and principal employer obligations.
  • Consolidated registrations and returns, and the portal used.

Transition Steps

  1. Review salary structures and model the cost impact.
  2. Update appointment letters and fixed-term contracts.
  3. Recalculate gratuity provisions.
  4. Keep existing registrations and registers until new processes are notified.
  5. Track Telangana Labour Department notifications.

Getting Help

Think Filing helps Telangana employers transition to the Labour Codes and tracks state rule changes.

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