{"id":50584,"date":"2022-11-08T14:24:45","date_gmt":"2022-11-08T08:54:45","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50584"},"modified":"2024-05-24T14:36:21","modified_gmt":"2024-05-24T09:06:21","slug":"all-you-need-to-know-about-the-labour-codes-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/all-you-need-to-know-about-the-labour-codes-in-india\/","title":{"rendered":"All You Need to Know About the Labour Codes in India"},"content":{"rendered":"\n<p>Recently,\nIndia surpassed the United Kingdom (UK) to become the fifth-largest economy in\nthe world. Despite being the fastest-growing major economy in the world,\nhowever, it lags far behind other nations or countries when it comes to per\ncapita GDP. In India, Labour plays an essential role in recognising India&#8217;s\neconomic growth. Unfortunately, India has been operating with an old &amp;\nasynchronous statutory framework that has slowed worker welfare in India. So,\nthe Indian Government and various State Governments have been taking various\nmeasures to promote ease of doing business in India. The Central Government of\nIndia proposed New Labour Codes; if these codes are implemented in a proper\nmanner can have a far-reaching impact towards reducing the compliance burden on\ncorporates without compromising the welfare of the workforce. Scroll down to check\nmore information regarding Labour Codes in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/all-you-need-to-know-about-the-labour-codes-in-india\/#Implementation_of_the_Labour_Codes_in_India\" >Implementation\nof the Labour Codes in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/all-you-need-to-know-about-the-labour-codes-in-india\/#An_Overview_of_4_Labour_Codes_in_India\" >An Overview of\n4 Labour Codes in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/all-you-need-to-know-about-the-labour-codes-in-india\/#Impact_of_New_Labour_Codes_in_India_on_Indias_Workforce\" >Impact of New\nLabour Codes in India on India\u2019s Workforce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/all-you-need-to-know-about-the-labour-codes-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_of_the_Labour_Codes_in_India\"><\/span>Implementation\nof the Labour Codes in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As\na step towards implementation of the Labour Codes in India out of 30 States\n&amp; 8 Union Territories, the following number of UTs or States in India have\npre-published draft rules for the Codes:<\/p>\n\n\n\n<ol>\n<li>27 States or Union Territories\nunder the <strong><em>Code on Wages, 2019<\/em><\/strong>;<\/li>\n\n\n\n<li>23 States or Union Territories\nunder the <strong><em>Industrial Relations Code, 2020<\/em><\/strong>;<\/li>\n\n\n\n<li>21 States or Union Territories\nunder the <strong><em>Code on Social Security, 2020<\/em><\/strong>;<\/li>\n\n\n\n<li>18 States or Union Territories\nunder the <strong><em>Occupational Safety, Health &amp; Working Conditions Code, 202o<\/em><\/strong>.<\/li>\n<\/ol>\n\n\n\n<p>However,\nimplementing the new Labour Codes in India seems to have been delayed. On March\n21, 2022, a press release issued by the Ministry of Labour &amp; Employment provides\nan update on the New Labour Codes&#8217; progress but doesn&#8217;t contain details\nregarding the effective date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_of_4_Labour_Codes_in_India\"><\/span>An Overview of\n4 Labour Codes in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare the four new Labour Codes in India:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Code on Social\nSecurity, 2020 &#8211; Labour Codes in India<\/h3>\n\n\n\n<p>The\nCode on Social Security seeks to change &amp; consolidate the laws concerning\nSocial Security to extend Social Security (SS) to all employees &amp; workers\neither in the unorganised or organised or any other sectors.<\/p>\n\n\n\n<p><strong><em>It\nincorporates 9 legislations<\/em><\/strong>:<\/p>\n\n\n\n<ol>\n<li>The Employees\u2019 Compensation Act,\n1923;<\/li>\n\n\n\n<li>The Employees\u2019 State Insurance\nAct, 1948;<\/li>\n\n\n\n<li>The Payment of Gratuity Act, 1972;<\/li>\n\n\n\n<li>The Cine Workers Welfare Fund\nAct, 1981;<\/li>\n\n\n\n<li>The Building &amp; Other\nConstruction Workers Welfare Cess Act, 1996;<\/li>\n\n\n\n<li>Unorganised Workers\u2019 Social\nSecurity Act 2008;<\/li>\n\n\n\n<li>The Employees\u2019 Provident Funds &amp;\nMiscellaneous Provisions Act, 1952;<\/li>\n\n\n\n<li>Employment Exchanges (Compulsory\nNotification of Vacancies) Act 1959;<\/li>\n\n\n\n<li>Maternity Benefit Act 1961.<\/li>\n<\/ol>\n\n\n\n<p><strong><em>The\nmain features of the Code on Social Security, 2020 are:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>According to Section 3 of the\nCode, it is not compulsory to get Registration if the industry establishment or\npremise is already registered under any other CLL or the Central Labour Law.<\/li>\n\n\n\n<li>The meaning of employee was\nintroduced &amp; is applicable across all parts of the Code.<\/li>\n\n\n\n<li>Section 4 of the Code facilitates\nthe enforceability of social security organisations &amp; their constitution.\nIt is needed for fund administration for different types of workers.<\/li>\n\n\n\n<li>According to Section 125 of the\nCode, a fixed limitation time period of 5 years will be set, comprising\ninquiries &amp; proceedings for the determination of the money dues of an\nemployee.<\/li>\n\n\n\n<li>The Central Government may reduce\nor defer the employee&#8217;s or employer&#8217;s contributions (under ESI &amp; PF) for up\nto 3 months in the case of an endemic, national disaster, or pandemic.<\/li>\n\n\n\n<li>Definitions for a home-based\nworker, platform worker, fixed-term employment, self-employed worker &amp; gig\nworker have been provided.<\/li>\n\n\n\n<li>Fixed-term employees or workers\nshall be subjected to payment of gratuity on the basis of pro-rata by the\nemployer. The gratuity time period has been further reduced from 5 to 3 years\nfor working journalists.<\/li>\n\n\n\n<li>Aggregators have been introduced\nin the Code as a marketplace or a digital intermediary for a user or buyer of a\nservice to connect with the service provider or the seller. As specified under\nSchedule 7 of the Code, the list of all the aggregators shall contribute 1% to\n2% of their yearly turnover to the Social Security Fund.<\/li>\n\n\n\n<li><strong><em>The Code specifies penalties for\ncertain offences like:<\/em><\/strong>\n<ul>\n<li>Illegally deducting the\ncontribution of the employer from the employee\u2019s wages has been changed from\nthe imprisonment of 1 year or a fine of Rs. 50,000\/-;<\/li>\n\n\n\n<li>Maximum imprisonment or jail for\nobstructing an inspector from performing their duty has been lessened from 1\nyear to 6 months.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Occupational\nSafety, Health &amp; Working Conditions Code, 2020 \u2013 Labour Codes in India<\/h3>\n\n\n\n<p>This\nCode seeks to regulate the health &amp; safety conditions of workers or\nemployees in establishments with 10 or more workers and all mines &amp; docks.\nIt incorporates 13 legislations:<\/p>\n\n\n\n<ul>\n<li>Factories Act, 1948;<\/li>\n\n\n\n<li>Mines Act, 1952;<\/li>\n\n\n\n<li>Dock Workers Act, 1986;<\/li>\n\n\n\n<li>The Plantations Labour Act, 1951;<\/li>\n\n\n\n<li><strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/clra-registration-and-licensing\">Contract Labour<\/a><\/strong> Act, 1970;<\/li>\n\n\n\n<li>Working Journalist (Fixation of\nRates of Wages) Act 1958;<\/li>\n\n\n\n<li>Motor Transport Workers Act 1961;<\/li>\n\n\n\n<li>Sales Promotion Employees\n(Conditions of Service) Act, 1976;<\/li>\n\n\n\n<li>Beedi &amp; Cigar Workers\n(Conditions of Employment) Act, 1966.<\/li>\n\n\n\n<li>Inter-State Migrant Workers Act,\n1979;<\/li>\n\n\n\n<li>The Working Journalist &amp;\nOther News Paper Employees (Conditions of Service &amp; Miscellaneous Provision)\nAct, 1955.<\/li>\n<\/ul>\n\n\n\n<p><strong><em>The\nCode applies to the following:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>Workers &amp; all other\nindividuals engaged in an administrative, managerial, or supervisory role (with\nmonthly wages of at least Rs. 15,000\/-);<\/li>\n\n\n\n<li>Establishments employing at least\n10 workers &amp; irrespective of the number of workers in all docks &amp;\nmines;<\/li>\n\n\n\n<li>Contact Labour engaged via a\ncontractor in the offices of the State and the Central Government;<\/li>\n\n\n\n<li>Specific provisions of the Code,\nlike working &amp; health conditions, apply to all employees, excluding\napprentices.<\/li>\n<\/ol>\n\n\n\n<p><strong><em>The\nfollowing are the crucial features of the Occupational Safety, Health &amp;\nWorking Conditions Code, 2020:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>All the establishments must\nprovide bathing places, locker rooms &amp; washrooms for male, female &amp;\ntransgender employees or workers.<\/li>\n\n\n\n<li>Employers are required to conduct\nannual health check-ups for the employees to promote formalisation at the\nworkplace.<\/li>\n\n\n\n<li>Special provisions specify leave\nrequirements &amp; working hrs for workers employed in journalism, transport\n&amp; sales.<\/li>\n\n\n\n<li>Provisions are included\nconcerning the women&#8217;s employment between 7 PM to 6 AM with conditions\nconcerning their consent &amp; safety, holidays and working days. If the\nwomen&#8217;s employment is dangerous for their safety &amp; health, the employer\nwill provide protection to them before their employment.<\/li>\n\n\n\n<li>Provisions have been introduced\nfor the employer to take consent or approval from the employee for OT (Over\nTime) work. It will apply to a small establishment also with up to 10 workers.\nMoreover, the workers shall get twice the wages for their overtime work.<\/li>\n\n\n\n<li>The employer shall compulsorily\nissue an Appointment Letter (AL) to the employee to promote formalisation at\nthe workplace.<\/li>\n\n\n\n<li>Leave encashment during dismissal\nor discharge, superannuation or death at the time of employment is laid out under\nSection 32 of the Code. Provisions concerning leave encashment are available at\nthe end of the calendar year. The Code gives for carry-forward of leaves in\ncase a worker doesn&#8217;t avail of the leave allowed to him or her in any calendar\nyear. However, the total number of leaves that may be carried forward cannot\nexceed 30 days &amp; any leave with wages that have been declined can be\ncarried forward without limit.<\/li>\n\n\n\n<li>This Code prohibits contact\nlabour in core activities except where:\n<ul>\n<li>The activities are such that they\ndon\u2019t require full-time workers for a specific portion of the day;<\/li>\n\n\n\n<li>There is an unexpected increase\nin a load of work in the core activity, which should be completed in a given\ntime;<\/li>\n\n\n\n<li>The general establishment\nfunctioning is such that the activity is normally done via a contractor.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Code on Wages,\n2019 \u2013 Labour Codes in India<\/h3>\n\n\n\n<p>This\nCode seeks to regulate bonus &amp; wage payments in all employments where any\ntrade, business, industry, or manufacture is carried out. The Code will apply\nto all the employees and the Central Government of India will make wage-related\ndecisions for employment like mines, railways &amp; oil fields. State\nGovernments in India will make decisions for all other employees. It\nincorporates 4 legislations:<\/p>\n\n\n\n<ol>\n<li>The Minimum Wage Act,<\/li>\n\n\n\n<li>The Equal Remuneration Act,<\/li>\n\n\n\n<li>The Payment of Wages Act,<\/li>\n\n\n\n<li>The Payment of Bonus Act, 1965.<\/li>\n<\/ol>\n\n\n\n<p><strong><em>The\nmain features of the Code on Wages, 2019 are:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>The Central or State Government\nshall not exceed 5 years to revise minimum wages.<\/li>\n\n\n\n<li>As per the conditions applicable\nin the Code of Wages, the employer\/worker shall pay wages not less than 50% of\nthe total remuneration. The computation of wages will comprise retaining allowance,\nbasic pay &amp; dearness allowance and it excludes conveyance, overtime\nallowance, house rent allowance, statutory bonus, conveyance, and commissions.\nA minimum 50% of the Cost-to-Company shall comprise basic pay &amp; dearness\nallowance.<\/li>\n\n\n\n<li>The employees whose wages do not\nsurpass a definite monthly amount are eligible for an annual bonus of a minimum\nof 8.35% of their wages\/Rs. 100\/-, whichever is higher. According to the Code,\nan employee can get a maximum bonus of 20% of their annual wages.<\/li>\n\n\n\n<li>The Payment of Wages Act applies\nto employees only under wages less than Rs. 24,000\/month. This threshold limit\nis being removed under the Code on Wages now. Therefore, the Code on Wages\nshall apply to all employees irrespective of monthly wages.<\/li>\n\n\n\n<li>The Code provides a usual\ndefinition of the Wages term as opposed to the various definitions specified\nunder the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965 &amp; the\nMinimum Wages Act, 1948.<\/li>\n\n\n\n<li>The Central &amp; State\nGovernments shall constitute Advisory Boards as per the Code&#8217;s provisions. The\nCentral Advisory Board shall include members representing employees &amp;\nemployers, including independent individuals and 5 State Government\nrepresentatives. The State Advisory Board shall include representative members\nof employees &amp; employers comprising an independent individual.<\/li>\n\n\n\n<li>According to the Code, the Central\nGovernment of India will fix the floor wage, considering workers; living\nstandards. Remember that the floor wages will be different for different\nlocations.<\/li>\n\n\n\n<li>The minimum wage decided by the\nState or Central Governments must be higher than the floor wage. In case the\nminimum wages fixed by the State Government or Central Government are higher\nthan the floor wage, they cannot lower the minimum wages.<\/li>\n\n\n\n<li>The employer has the right to\ndeduct wages, including absence from duty, fines, and accommodation given by\nthe employer\/the advance payment made to the employee. Remember that the\ndeductions shouldn\u2019t be more than 50% of the total wage of the employee.<\/li>\n\n\n\n<li>It\nprohibits employers from paying fewer wages than the minimum wage. The State or\nCentral Governments, as the instance may be, must notify minimum wages based on\nthe following:\n<ul>\n<li>Workers&#8217; skills;<\/li>\n\n\n\n<li>Work difficulty;<\/li>\n\n\n\n<li>Time or number of pieces\nproduced.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>State Advisory Boards (SABs) will\nconsist of employees, employers &#038; independent persons. Further, 1\/3 of the\ntotal members of the State Boards &#038; Central Boards will be women. The State\nand Central Boards will advise the appropriate Governments on various issues\ncomprising:\n<ul>\n<li>Increasing employment opportunities\nfor women;<\/li>\n\n\n\n<li>Fixation of minimum wages.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Industrial\nRelation Code, 2020 \u2013 Labour Codes in India<\/h3>\n\n\n\n<p>This\nCode seeks to simplify the compliance process &amp; promotes ease of doing\nbusiness. It incorporates 3 legislations:<\/p>\n\n\n\n<ul>\n<li>The Trade Unions Act, 1926;<\/li>\n\n\n\n<li>The Industrial Disputes Act,\n1947;<\/li>\n\n\n\n<li>The Industrial Employment\n(Standing Orders) Act, 1946.<\/li>\n<\/ul>\n\n\n\n<p><strong><em>The\nCode applies to establishments in accordance with the formation of Unions &amp;\nCommittees:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>The appropriate Government in\nIndia may order to constitute a Work Committee the employer having an\nestablishment where 100\/more workers are employed\/have been employed on any day\nin the preceding twelve months;<\/li>\n\n\n\n<li>The Standing Orders (SOs) apply\nto every industrial establishment where 30\/more workers are employed\/were\nemployed on any day of the preceding twelve months;<\/li>\n\n\n\n<li>Any Trade Union having 7\/more\nmembers may register under the Code digitally or otherwise;<\/li>\n\n\n\n<li>Industrial Establishments with\n20\/more workers shall have one or more GRCs (Grievance Redressal Committees) to\nresolve disputes or arguments arising from individual grievances.<\/li>\n<\/ol>\n\n\n\n<p><strong><em>The\nfollowing are the features of the Industrial Relation Code, 2020:<\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>The Industrial Relation Code,\n2020 (under Labour Codes in India) has introduced a Sole Negotiating Union or\nSNU in establishments with more than 1 Trade Union. A sole negotiating union\nmust have 51% \/ more workers or members as per Section 14 of the Code. Only an\nexclusive negotiating union shall be allowed to negotiate terms with the\nemployer. If there are no eligible sole negotiating terms with the employer.<\/li>\n\n\n\n<li>This Code provides provisions for\nworkers or employees to secure employment after being laid off. A fund shall be\ninitiated, including contributions from the employer &amp; the appropriate\nGovernment.<\/li>\n\n\n\n<li>The mechanism for settling\nindustrial disputes shall be formed by the Central Government of India,\ncomprising a National Industrial Tribunal &amp; one or more industrial\ntribunals.<\/li>\n\n\n\n<li>It is now compulsory under the\nCode to approach the grievance or compliant redressal committee in case of any\ngrievance or complaint. An inquiry, along with its investigation, should be\ncompleted within 90 days. The time limitation begins from the suspension date\nof the worker.<\/li>\n\n\n\n<li>The workmen terms are renamed\n&amp; replaced with the worker in the Code.<\/li>\n\n\n\n<li>The Code introduces definitions\nof both employee &amp; fixed-term employment.<\/li>\n\n\n\n<li>The Standing Orders (SOs) only\napplied to a threshold above 100\/more workers in accordance with the Industrial\nEstablishment Standing Order Act (IESOA), 1946. The threshold of SO (Standing\nOrder) has now been further increased from 100 to 300 workers.<\/li>\n\n\n\n<li>The definition of Strike terms is\nnow denoted as mass casual leaves by more than 50% of workers on a specific\nday.<\/li>\n\n\n\n<li><strong><em>No individual shall go on\nlockouts &amp; strikes in violation of the contract:<\/em><\/strong>\n<ul>\n<li>At the time of pendency of\nproceedings before a Tribunal or NIT (National Industrial Tribunal) &amp; 60\ndays after the conclusion of such proceedings;<\/li>\n\n\n\n<li>Within 14 days of giving such\nnotice;<\/li>\n\n\n\n<li>At the time of the pendency of\nany conciliation proceedings before a conciliation officer &amp; 7 days after\nthe conclusion of such proceedings;<\/li>\n\n\n\n<li>Without giving notice to the\nemployer regarding lockout or strike, as hereinafter provided, within 60 days\nbefore striking;<\/li>\n\n\n\n<li>Before the expiry date of lockout\nor strike specified in any such notice;<\/li>\n\n\n\n<li>At the time of the pendency of\narbitration proceedings before an arbitrator &amp; 60 days after the conclusion\nof such proceedings.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_New_Labour_Codes_in_India_on_Indias_Workforce\"><\/span>Impact of New\nLabour Codes in India on India\u2019s Workforce<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing is the impact of New Labour Codes in India:<\/p>\n\n\n\n<ul>\n<li><strong>Decreased\nWorking Hours<\/strong>: The maximum daily working hours have been\nreduced from 9 hrs to 8 hrs, although the maximum daily hrs inclusive of rest\nintervals have increased from 10.5 hrs to 12 hrs. The reduction in daily\nworking hours and the increase in total spread over will permit longer rest\nintervals for workers, possibly leading to greater productivity levels. <\/li>\n\n\n\n<li><strong>Flexibility\nin Leaves<\/strong>: The leaves have been rationalised under the new\nLabour Codes in India. Under the <strong><em>Factories Act, of 1948<\/em><\/strong>, a holiday\nshould be given on Sunday unless a compensatory holiday (with prior consent\nfrom authorities) is given either 3 days before\/after such Sunday. The\ncompensatory holiday should be planned so that the worker doesn&#8217;t work for more\nthan 10 consecutive days. On the other side, the new Codes mandate that a\nworker shall be eligible for at least 1 leave\/week, removing the complex\nprovisions on compensatory holidays &amp; providing higher flexibility in\ngranting leaves.<\/li>\n\n\n\n<li><strong>Broader\nApplicability<\/strong>: The applicability under the new Codes has\nbeen broadened to comprise more establishments &amp; workers. For example, while\nthe <strong><em>Minimum Wages Act, 1948<\/em><\/strong><sup><a class=\"text-primary\" href=\"https:\/\/clc.gov.in\/clc\/sites\/default\/files\/MinimumWagesact.pdf\"><strong>[1]<\/strong><\/a><\/sup> applied to workers\nonly in scheduled employment, the Codes on Wages, 2019 is applicable to all\nemployees &amp; establishments. The threshold applicability limit of Rs. 24,000\nunder the <strong><em>Payment of Wages Act, 1936<\/em><\/strong>, has been removed. Similarly, the\nEPF Act, 1952, applied to scheduled employment only prescribed in the portal.\nThe Code removes this industry-specific applicability criterion.<\/li>\n\n\n\n<li><strong>Lower\nNet-Take Home Salary<\/strong>: Under the new Labour Codes in\nIndia, the basic wage component cannot be less than 50% of the total\nremuneration &amp; hence, the sum of excluded components shouldn&#8217;t be more than\n50% of total remuneration. This will have 3 board implications. First, contributions\ntowards PF and Pension will likely increase. Second, employees will get minor\nallowances (excluded from basic pay) since these cannot surpass the 50%\nthreshold. In general, the net take-home salary of the employee will reduce.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The roll-out of the Labour Codes in India has been considerably delayed as all 36 States and Union Territories haven&#8217;t been notified of state-specific rules. Even after 2 years of their enactment, there is no such clarity as to when they will be implemented. As a result, the benefits granted to workers under the Labour Codes in India have been deferred indefinitely. With India reaching new heights on the world economic front, the benefits or advantages of this progress must be equally distributed across the country&#8217;s workforce.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/\">Contract Labour Act: A Synopsis of Key Provisions<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, India surpassed the United Kingdom (UK) to become the fifth-largest economy in the world. Despite being the fastest-growing major economy in the world, however, it lags far behind other nations or countries when it comes to per capita GDP. In India, Labour plays an essential role in recognising India&#8217;s economic growth. Unfortunately, India has [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":50585,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2386],"tags":[2840],"acf":{"service_id":"580"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":3544,"readingTime":10,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50584"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50584"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50584\/revisions"}],"predecessor-version":[{"id":64406,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50584\/revisions\/64406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50585"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}