According to a PTI report, the next fiscal year, starting in 2022, will likely have new labour codes laws covering wages, social security, labor relations and workplace safety. These norms are expected to affect aspects of employment and work culture, such as home wages, hours worked and days worked. With the implementation of this Code, Indian employees will be able to enjoy a four-day work week starting next year. But the Department of Labor has made it clear that even if the proposal is approved, employees will have to work 48 hours a week, so employees may have to work 12 hours a day on weekdays. If these codes are in place, telecommuting wages will be reduced and companies will face higher contingency obligations. Monetary Adjustments Experts evaluating the proposed labor law predict that the new law will have far-reaching effects on basic wages and employee emergencies. The new rules will increase the amount employees transfer to their PF accounts each month. However, your monthly salary will decrease. There is a limit on allowances which means that 50% of your salary is your basic salary and your contribution to the reserve fund is a percentage of your basic salary and your dear premium. The Hindustan Times reported that the central government had already established rules under four labor laws and that the state had to follow them because of the fact that labor is a partner entity(New labour codes).
Political View-New Labour Codes:
Implementation Earlier this week, India’s Coalition Minister Bhoopender Yadav said the Occupational Safety, Health and Conditions regulations were the only regulations with the fewest countries to have previously issued draft regulations. However, both the center and the state are required to notify regulations under the Four new labour codes to ensure compliance with the laws of their respective jurisdictions. The new labour codes authorizes central government, state governments and other relevant agencies to set rules that require public consultations to be published in the Official Gazette for 30 to 45 days.
New labour codes:
In India, labor is included in the list of concurrent employees. Because it is on the
parallel list, both legislatures and state legislatures can legislate it. According to the central government, before the adoption of new labor laws, there were more than 40 central laws and more than 100 state laws on labor and related issues. The 2nd National Labor Commission (2002) recommended classifying basic labor laws into the following groups:
Well-being and working conditions
This was recommended by the Commission because current labor laws are outdated, complex and contain conflicting definitions. The Commission has proposed simplifying labor laws to ensure transparency and uniformity. In 2019, the central government introduced 4 labor law bills that combined 29 central laws. Here is New labour codes
Labor Relations Code
social security code
Occupational Safety, Health and Working Conditions New labour codes
Although the 2019 wage law was adopted, the remaining three bills were referred to the Labor Standing Committee. According to the committee’s recommendations, the government replaced the bill with a new one in September 2020 and it was passed the same month. According to the Department of Labor,
rules for four labor law bills are notified at once. Accordingly, the Ministry of Employment and Labor refused to revise and enforce the draft Labor Standards Act in 2019, even though it was circulated on its own.
Wage Code, 2019
The wage law was passed by the National Assembly in 2019. The
Wage Act aims to regulate wages and bonuses in any sphere of employment in which industry, business, trade or production is conducted. This code supersedes the following laws:
Minimum Wage Act of 1948
Wages Act of 1936
Bonus Payment Act of 1965
Equal Remuneration Act, 1976
Wage Law Covers:
New labour codes apply to all employees. The central government makes decisions about wages for mines, railroads and oil fields. For all other types, the state decides. Salary includes salaries, allowances, or other monetary factors. Bonuses and travel expenses are not included. Minimum Salary
According to the law, the central government sets the minimum wage according to the standard of living of workers. Minimum wage may vary by geographic location. The minimum wage set by the central or provincial governments must be higher than the minimum wage. If the current minimum wage is higher than the minimum wage, neither the central government nor the provincial government can lower the minimum wage. When setting the minimum wage, the State should take into account the level of complexity of work and the level of qualifications of workers. In addition, the established minimum wage is reviewed by the government at least once every five years. Employers cannot hire people for less than the minimum wage. Working hours are set by the central or provincial governments. In the case of overtime, the employee is entitled to compensation for overtime, which must be at least twice the normal wage. Employers can set pay periods to be daily, weekly, biweekly or monthly. Employers may withhold wages in the following cases: However, the deductible cannot exceed 50% of the worker’s wages. penalty
Accommodation provided by the employer
Advance payments to employees
Any employee whose salary does not exceed a fixed monthly amount is eligible for an annual bonus. New labour codes prohibits wage discrimination based on gender and the hiring of people for the same job or jobs of a similar nature. Jobs of a similar nature are defined as jobs requiring the same skills, effort, experience and responsibility.
Advisory boards are formed by the central and state governments. This committee is made up of an equal number of employees and employers, state representatives and independent individuals.
. One-third of the board is women. The commission will advise governments on setting a minimum wage and increasing women’s employment opportunities. New labour codes sets out penalties for crimes committed by employers. Violation of Code Provisions
paid less than the minimum wage
The maximum penalty is 3 months in prison and a fine of not more than 5 million.