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Textile & Garments Compliance

City Snap

Securing Exports, Mitigating Principal Employer Liability

Workforce Limited offers specialized compliance for the Textile, Garment, and Hosiery sector. We mitigate Principal Employer liability, manage piece-rate wages (EPF/ESIC), and guarantee 100% adherence to the New Wage Code's wage floor and safety protocols.

The ₹50 Lakh Error: Why Compliance Failure Threatens Your Export Orders

The Textile and Garment sector—India’s largest employer of women in the formal sector—operates on razor-thin margins and strict global standards. Your compliance risk is dual: financial penalties from the EPFO and supply chain risk from international buyers (who demand ethical labor practices).

The Problem

The supply chain relies on contractors and subcontractors, making the Principal Employer (the main mill or factory) liable for the non-compliance of its vendors. A single contractor missing EPF or ESIC payments can result in retrospective demands running into crores, crippling your cash flow and violating international social compliance audits (like SEDEX or BSCI).

The Attrition & Piece-Rate Nightmare

High turnover and piece-rate wages (per garment or unit produced) make accurate PF/ESI contribution calculation a continuous administrative hazard. Errors in defining 'Basic Wage' can trigger a Section 7A assessment and high penalties.

Your Integrated Solution: Workforce Limited's Textile Compliance Shield

We provide specialized compliance management that transforms the risks associated with high-volume, variable-pay workforces into seamless, audit-proof operations.

Principal Employer Liability Defense (The Contract Shield)

Contract labour non-compliance is one of the biggest financial risks for large enterprises. The Contract Shield protects your organization by enforcing a strict compliance gate before any contractor invoice is paid—automatically verifying the contractor’s EPF ECR and ESIC challan to eliminate Principal Employer liability. Through continuous vendor audits, wage verification, and end-to-end CLRA compliance management, the system ensures every contracted worker receives statutory benefits while your business remains fully protected from penalties, back-dated dues, and legal exposure.

New Wage Code & Payroll Restructuring Mastery

The New Wage Code (NWC) fundamentally reshapes payroll and statutory cost planning. We help companies implement a fully compliant salary structure—ensuring the mandatory 50% Basic Wage floor is met to prevent future PF and Gratuity liabilities. Our experts correctly classify piece-rate and incentive-based wages to avoid unnecessary inclusion in the statutory PF base, using favourable legal precedents. We also calculate and provision pro-rata Gratuity for Fixed-Term Employees, who now qualify after one year under the NWC. This comprehensive restructuring safeguards your organisation from retrospective dues, audit risks, and unexpected financial shocks.

Operational Continuity & Worker Welfare

We ensure your production line runs smoothly by managing both physical and digital compliance requirements. All statutory registers—wages, attendance, overtime, and leave—are fully digitized and maintained for instant inspection readiness under the Factories Act and Shops & Establishments Act. We strengthen workplace safety through OSH Code–aligned practices, including compliance for women working night shifts and mandatory annual health check-ups. To support your workforce, we facilitate Pan-India ESIC coverage and assist migrant workers with PF transfers and withdrawal claims, enhancing both operational continuity and worker welfare.