New labour codes aim to transform work and worker rights | Fusion - WeRIndia

India has entered a new phase of labour reform with the rollout of four consolidated Labour Codes.

These laws seek to modernise the labour framework, improve business ease, and strengthen worker protection.

Moreover, they apply to full-time staff, contract workers, part-timers, and even gig and platform workers.

The Code on Wages now guarantees minimum wages for all employees. A national floor wage will guide states, ensuring fair pay across sectors.

Additionally, the revised definition of wages requires basic pay to form at least 50% of total salary.

This may reduce take-home pay for some. However, it will increase contributions to long-term social security benefits such as the Provident Fund and gratuity. Thus, retirement security should improve over time.

The Code on Social Security brings gig and platform workers under a national benefits framework.

Aggregators must contribute part of their annual turnover to a social security fund. Consequently, workers may access life insurance, disability cover, and health benefits.

The Codes also reduce the gratuity eligibility period for fixed-term employees to one year.

This change promotes financial stability for short-term and project-based workers.

Employers must also issue appointment letters to all new hires, including those in unorganised sectors.

Therefore, workers can rely on clear documentation of wages, responsibilities, and entitlements.

Several welfare measures strengthen workplace fairness. Overtime wages must be at least double the regular rate.

Employees can earn annual leave after 180 days instead of 240. Women may work night shifts with their consent and with safety measures in place.

Additionally, remote work is now recognised for service sectors. Health and safety provisions have expanded.

Workers above 40 must receive free annual health check-ups. Furthermore, accidents during commutes between home and workplace will be treated as employment-related. This ensures compensation in such situations.

Finally, the Codes enforce timelines for wage payments. Employers must pay salaries within a fixed period, ensuring better financial consistency for workers.

These reforms represent a significant shift in India’s labour landscape. They aim to balance flexibility, protection, and growth while improving working conditions across the country.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 07, 2017

Image Reference: https://pxhere.com/en/photo/638955