According to the new labor law, at least 50% of an employee's total pay (CTC) will be considered basic pay. This will increase liabilities such as PF, gratuity, and bonus.

Simplifying labor laws will change workers' working hours, wages, pension payments, and gratuity. Workers will also receive minimum security. To this end, the state government has accelerated the implementation of four new labor codes. Draft rules have been notified at the state level and placed in the public domain to solicit suggestions and objections from stakeholders. Based on the suggestions received, final rules will be notified in May.

Under the new labour system, 29 outdated and complex labour laws have been abolished and consolidated into four codes: the Wage Code 2019, the Industrial Relations Code 2020, the Occupational Safety, Health and Working Conditions Code 2020, and the Social Security Code 2020. The biggest change under this is the definition of wages.

At least 50% of an employee's gross pay (CTC) will be considered basic pay. This will increase liabilities such as PF, gratuity, and bonuses. Furthermore, managerial and supervisory employees will now be covered by legal protection, while responsibility for contract workers has also been placed on the principal employer.

Minimum wages are mandatory for employees across all sectors

Under the new labor system in the state, 29 old and complex labor laws have been abolished and consolidated into four codes. For the first time, the Wage Code mandates minimum wages for employees in all sectors. The central government will set a floor wage, below which states will not be able to set wages.

Wages will be paid by the seventh of every month. Overtime will be paid double. Equal pay for equal work (eliminating discrimination based on gender, caste, and religion). New rules will apply for retrenchment and strikes.

Under this, only establishments with 300 or more workers will be required to seek government permission for retrenchment or closure. Previously, this limit was 100.

Accidents will also be considered work-related.
The new Social Security Code includes gig and platform workers (such as delivery and app-based workers) for the first time. Companies will be required to contribute 1-2% of their annual turnover to a social security fund. Accidents while commuting to and from the workplace will also be considered work-related. The inspector's role in the new system will be that of an inspector-cum-facilitator. Minor violations will be given a first opportunity to correct them, while serious cases could result in fines of up to ₹20 lakh. The MSME sector will receive the greatest relief from the new codes.

These changes will also happen

- Notice and compensation are required in establishments with fewer than 300 workers. A 14-day notice is required before a strike.
- A grievance redressal committee is required in establishments with more than 20 workers
. - In the event of layoffs, 15 days' salary must be deposited into a reskilling fund
. - An 8-hour work day, a 48-hour weekly limit.
- Rules apply to contract workers with more than 50 jobs
- Appointment letters are mandatory for all workers
- Annual health check-up for workers over 40 years of age
- Women allowed to work in all shifts
- Social security: Gig and platform workers also included.

Express your feedback