India's Equal Opportunity Laws Are Older Than Most of Your Managers. And Most Companies Are Still Not Compliant
Quick answer
Indian employers must not discriminate on gender in wages for the same or similar work, or by sex in recruitment (Section 3, Code on Wages, 2019, which replaced the Equal Remuneration Act, 1976). Under Section 21 of the RPwD Act, 2016, every establishment must notify an equal opportunity policy. The top 1,000 listed companies also disclose diversity data in BRSR.
Key takeaways
- The Code on Wages, 2019 now carries the equal pay and recruitment rules of the Equal Remuneration Act, 1976.
- Private employers must notify and register an equal opportunity policy under Section 21 of the RPwD Act; the 4% reservation in Section 34 applies to government establishments.
- BRSR is mandatory for the top 1,000 listed companies from FY 2022-23 and asks for gender and disability workforce data and discrimination complaints.
- Hiring decisions based on undocumented "cultural fit" judgements are hard to defend.
New year. New hiring targets. New diversity commitments printed in the board papers. And yet, as you're ramping up recruitment for FY 2026-27, how many of your senior managers could name even one law that governs equal opportunity employment in India?
The honest answer from most companies we speak with: not many. What's striking is that India's framework on equal opportunity is not new. In fact, it's older than most of the people managing your hiring. The Equal Remuneration Act was passed in 1976. The Industrial Disputes Act has protected against discrimination since 1947. Both have since been folded into the new labour codes, which took effect on 21 November 2025; the equal pay rules now sit in the Code on Wages, 2019. Yet compliance remains patchy, and ESG reporting is finally forcing the question: what does your company actually do to ensure equal opportunity?
Which Indian laws govern equal opportunity at work?
Mainly the Code on Wages, 2019 (equal pay and non-discrimination in recruitment), the RPwD Act, 2016, the POSH Act, 2013 and, for large listed companies, SEBI’s BRSR disclosures.
Let's be clear about what Indian law requires. This isn't about quotas or reverse discrimination. This is about what's actually written in statute:
| Law / Requirement | Passed / Effective | Key Requirement for Your Company |
|---|---|---|
| Code on Wages, 2019 (replaced the Equal Remuneration Act, 1976) | 1976; Code in force from 21 November 2025 | No gender discrimination in wages for the same or similar work, or by sex in recruitment and conditions of employment (Section 3) |
| Industrial Disputes Act, 1947 (now folded into the Industrial Relations Code, 2020) | 1947; Code in force from 21 November 2025 | No unfair discrimination in hiring, promotion, or termination based on caste, creed, or political belief |
| The Rights of Persons with Disabilities Act (RPwD), 2016 | 2016 | Every establishment: notify and register an equal opportunity policy (Section 21) and keep records (Section 22). Government establishments: 4% reservation (Section 34) and reasonable accommodation (Section 20) |
| Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 | 2013 | Prevention and safe reporting of sexual harassment; Internal Committee; annual report by the Committee (Section 21) |
| BRSR (Business Responsibility & Sustainability Reporting) | Mandatory from FY 2022-23 | Disclosure of workforce by gender and disability; median remuneration by gender; complaints on discrimination and sexual harassment |
Notice the last one? BRSR. Since FY 2022-23, the top 1,000 listed companies must disclose workforce data by gender and disability, median remuneration by gender, whether they have an equal opportunity policy under the RPwD Act, how accessible their workplaces are, and complaints on discrimination and sexual harassment. If your company is in that bracket, this is no longer optional discussion. It's mandatory disclosure.
"The laws exist. The enforcement mechanism exists. What's missing is the practical implementation at the hiring table." — Compliance audit findings, mid-sized financial services firm
What does equal opportunity compliance mean in practice?
Here's where most companies falter. Compliance doesn't mean having a document. It means:
Equal Remuneration Act (now Code on Wages, 2019): Are you comparing pay for roles of equal complexity, not identical titles? A senior analyst doing the same work as a senior associate should earn the same, yet we find pay gaps that can't be justified. Audit your current salary bands.
RPwD Act (equal opportunity policy): The 4% reservation in Section 34 binds government establishments, but every establishment must notify and register an equal opportunity policy under Section 21. Do you have a pipeline? Reasonable accommodation policy? Or does your "no suitable candidates" rejection happen at the shortlist stage? Many companies commit to disability hiring but then don't actively source from the disability community.
Industrial Disputes Act (Non-discrimination): Your hiring managers' subjective judgment, "cultural fit," "team vibe," and "doesn't seem like our type" are red flags. If the rejection logic can't be documented and measured, it's vulnerable to a discrimination claim.
BRSR Readiness: If you're not tracking diversity data granularly (by gender, disability status, caste where applicants disclose), you can't report it. And if you're required to report it, you're auditable.
Why is ESG reporting raising the stakes?
Because BRSR turns equal opportunity into published data that investors can read and compare.
January is when boards review ESG targets for the coming year. Investors are watching. Stock exchanges are watching. And the definition of "good practice" is tightening. The days of generic "we're committed to diversity" statements are ending.
Start now: audit your hiring process against the table above. Which laws apply to your company? Where are the gaps? What data do you need to start tracking? Our diversity and inclusion course gives hiring managers the grounding, and the diversity and inclusion training hub covers the wider programme.
Compliance isn't punishment. It's clarity. It's knowing that when you hire, you're hiring the best person, not the safest choice.
Frequently asked questions
Is the Equal Remuneration Act, 1976 still in force?
No. Section 69 of the Code on Wages, 2019 repeals it, and the Code took effect on 21 November 2025. Section 3 of the Code carries forward the ban on gender discrimination in pay and recruitment.
Does the 4% disability reservation apply to private companies?
Section 34 of the RPwD Act, 2016 applies the 4% reservation to government establishments. Private establishments must still notify and register an equal opportunity policy under Section 21 and keep records under Section 22.
Which companies must file a BRSR?
The top 1,000 listed entities by market capitalisation, on a mandatory basis from FY 2022-23, under SEBI’s circular of 10 May 2021.
What equal opportunity data does BRSR ask for?
Employees and workers by gender and disability, median remuneration by gender, whether you have an RPwD equal opportunity policy, workplace accessibility, and complaints on discrimination and sexual harassment.
Where should we start an equal opportunity audit?
Compare pay for equal or similar work across salary bands, document the reasons behind hiring rejections, confirm your RPwD policy is notified and registered, and set up the data you will need to report.
Sources
- Ministry of Labour and Employment: The Code on Wages, 2019 (PDF)
- Ministry of Labour and Employment: FAQs on Labour Codes, confirming enforcement from 21 November 2025 (PDF)
- India Code: The Rights of Persons with Disabilities Act, 2016 (PDF)
- SEBI: Business responsibility and sustainability reporting by listed entities, circular dated 10 May 2021
- India Code: Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
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