New Labor Codes: Government implemented four new labor codes, changing the rules for wages, gratuity and overtime, Details here
New Labor Codes: The central government announced major changes and reforms to labor laws on Friday. Four new labor codes have been implemented, replacing old labor laws.
New Labor Codes India: The central government announced major changes and reforms to labor laws on Friday. Four new labor codes have been implemented, replacing old labor laws. Union Labor and Employment Minister Mansukh Mandaviya announced this in a post on the social media platform X.
He described this move as a historic step taken by Prime Minister Narendra Modi for workers, providing them with security and economic strength, as well as the opportunity to work with dignity.
Additionally, the Prime Minister wrote on Twitter that, “Today, our government has implemented four labor codes.” He described these labor codes as the largest and most progressive labor-centric reform since independence. They will empower workers and make doing business easier than before.
What are these four labor codes?
The four labor codes implemented by the government are the Wage Code, the Industrial Relations Code, the Social Security Code, and the Occupational Safety Code. Twenty-nine old labor laws enacted in the country since independence have now been incorporated into these four new codes.
The government believes that old laws are no longer appropriate for the current economy and working practices. Rules must be as modern as today’s times. Therefore, this change has been decided.
The company will have to provide an appointment letter.
The government has decided that companies will now compulsorily provide an appointment letter to every employee upon hiring. This will promote transparency and curb company arbitrariness. Additionally, approximately 400 million unorganized sector workers in the country will be brought under the ambit of social security, providing them with benefits like PF, ESIC, and pension.
Gratuity rules also changed.
The implementation of the new rules could be a significant benefit for those working in private companies. Previously, 5 years of work was required for gratuity to be eligible, but now fixed-term employees (FTEs) will be eligible for gratuity even after just 1 year of service. This will also benefit employees who work on short-term contracts and previously were not entitled to this benefit.
Overtime rules have also been changed. Under these changes, if an employee works beyond the stipulated time, the company will have to pay them double their salary. The government has also ensured that employees receive their salaries on time, so that no one faces financial difficulties at the end of the month.
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