New Labor Code: Taking a big step towards labor reforms, the Central Government has now implemented four new Labor Code laws passed by the Parliament five years ago. After the implementation of these four labor codes—Wage Code, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code—29 old labor laws have been abolished. The government says this reform is historically important to give workers more protection, clearer rules and better social protection.
What is special in the new labor law?
The biggest impact of the new Labor Code has been on the rules of gratuity. Earlier, five years of continuous service was required for an employee to receive gratuity, but now this period has been reduced to only one year. This will directly benefit fixed-term and contract employees. Additionally, women have been allowed to work night shifts with safety arrangements and will be paid twice as much as men for overtime. The working time has been fixed at 48 hours a week, whereas work can be done for 8 to 12 hours a day. In case of overtime, it will be mandatory for companies to pay double the salary.
With the implementation of new labor laws, minimum wage has become a legal right for all workers. Now no employee in any sector will be paid less than the minimum wage. It is now mandatory to give appointment letter to every employee at the time of appointment, which will ensure transparency in the terms and conditions of employment. ESIC coverage has been made mandatory across the country, including small and hazardous workplaces, to increase the scope of medical and insurance coverage.
Double salary for overtime
The special thing is that for the first time in the new labor code, electronic media journalists, digital and audio-visual media workers, plantation laborers and dubbing artists have also been included in the scope of formal labor protection. With this, millions of employees working in these sectors will be able to get regular employment security and clear labor rights. With the implementation of new laws, workers will get more protection, transparency in employment will increase and working conditions are expected to improve.
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