The government has issued four new labour laws, expected to have a major change in the salary of an employee and their work schedule looks. New laws on labor: 12 hours of work per day, 4 days of work each week beginning in July. There is an official announcement as to when the new laws are to be implemented, but reports suggest that June 1 will be the planned date, which is most likely.
Why Labour Codes Have Been Introduced?
The codes of labour were created by the government in order to modernize employment laws. “The reason for the implementation of these laws was to streamline and modernize the rules of employment. The Parliament approved the Code on Wages in August 2019, there were three other labour laws, specifically, the Industrial Relations Code, 2020 and the Occupational Safety and Health and Working Conditions Code of 2020, and the Code on Social Security, 2020, was approved by the parliament in September of 2020.” Srinivas BR said. partner of DSK Legal.
Where these new labour laws are taking force?
Twenty-three states as well as Union Territories (UTs) have already released the draft rules for the Code on Wages. As the new codes take force, employees could be able to expect an increase in their work hours, changes to PF contribution, the introduction of a 4-day week of work, and a decrease in their take-home pay. With the new code, employers may permit employees to work 4 days instead of 5 during the week.
However, there is a caveat. Employees can work four days of work, but they will have to endure an increase in working hours, which will be twelve hours per week. The number of hours worked will not be reduced even if it is a four-day work week. New wage codes require a week of 48 hours. This means that the number of hours worked per day will experience a dramatic rise.
What does the Labour Codes Promise to do?
In the new labour laws employees will be entitled to the right to receive minimum wages, and social insurance coverage will be increased. The new labour laws will be beneficial to both the organized and the non-organized sectors.
“The Code universalizes the right to the timely and minimum payment of wages and expands Social Security coverage while giving women the power to protect themselves and their families and easing the lives of inter-state migrants. The changes will increase the amount of work and output produced by workers. Not only that but also in the forms of preventive measures implemented prior to hand for the resolution of limited disputes in the areas like the ones mentioned earlier,” said Anushkaa Arora the Founder and Principal of the ABA Law Office.
“These Labour Reforms aim to improve the ease of Doing business within the country. The creation of employment and the output of workers will also be improved. The advantages of these four labour codes are available to all workers in both the unorganized and organized sectors,” added Aditya Chopra the Managing Partner of Victorian Legalis – Advocates & Solicitors.
What are the Changes in PF Contributions and Salary?
“Under the newly-enacted Wage Code, the employees’ take-home salaries will drastically change. With the minimum pay of at or near to 50 percent of the monthly gross salary The PF contribution to the fund will rise, which can be beneficial in the event of retirement for workers,” said Arora.
According to Sameer Jain the Managing Partner of PSL Advocates and Solicitors, “The basic salary has been set at 50 percent of the CTC, previously 35-40 percent, which will increase the PF contribution set at 12 percent for employer and employee thereby reducing the take-home salary of the employee.”
What are the Changes in Working Hours?
With the new labour laws, one of the main changes which are expected to be implemented is a change in working hours. After the new rule goes into force, businesses will be able to have employees work for 4 days instead of 5 in addition to three weekdays off. “Regular working hours” will be able to become 12 hours a day instead of the 9 hours that are currently. If a firm decides to do this then the work hours would be set at 4 days per week, with three mandatory days off. The work week’s working hours remain the same at just 48 hours.” Chopra said. Chopra.
What date will Labour Laws be Implemented?
Although several reports in the media say that the changes will take effect on July 1st, many others claim that they will take effect in during the 3rd quarter of this fiscal year. ” As per the media reports, it is speculated that the Labour Codes will come into effect by in the third quarter of this financial year. However, there has been no official communication from the Government in this regard,” Srinivas BR.
How does Employee’s life changes?
Employees will need to extend their current nine or eight-hour working day to a 12-hour working day in order to go for the four-day week. This is applicable to all industries, however, it will change depending on the laws of your state. There are no changes to the duration of days off, but employees now have the option of earning an hour of leave per 20 working days instead of 45 days.
Furthermore, employees are eligible to take leave within 180 days of joining a business, reducing it from 240 after the new labour laws have been implemented. There are 29 centrally consolidated labor laws that are governed by four codes of wage, workplace health and social security, industrial relations, and occupational health.
It was approved by the parliament the Code of Wages in August 2019, and the rest code was ratified in September 2020. Once all states have been notified of the new regulations the codes will be implemented since labor is covered by The Concurrent List in the Constitution.
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