Things to know about new labour code bills

As the government approves three new labour code bills, they will impact the salary structure and other things of employees.

The labour laws have been changed for the first time in the country since Independence.  These new rules will be effective from April 1, 2021.

Here are the important things and changes as per the new bills:

• The new three bills are, the Occupational Safety, Health and Working Conditions Code Bill, 2020, the Industrial Relations Code Bill, 2020, and Code on Social Security Bill, 2020.
• As per the new definition of wage code, the basic pay will have to comprise 50 per cent or more of employees’ CTC. As a result, PF and gratuity will be increased, but the take home-home salary will be decreased.
• That means, there will be an increase in retirement benefits due to the changed salary structure. The highest-earning employees will be affected more by this change. It could also affect the balance sheet of the companies.
• The new rules proposed to increase the maximum hours of work to 12. These rules also proposed to provide half an hour rest to the employees every five hours. That means employers should not make their employees work continuously for more than five hours.
• The new Industrial Relations Code Bill restrict the employees right to strike. As per the new rules, workers should have to give a 60-day notice for going on strike. They should also not go on strike if the proceedings are before a Tribunal. This bill applies to all industrial establishments.
• The Social Security Code Bill proposes the need to form a social security fund for unorganised workers, gig workers and platform workers. It also sees the need to establish a National Social Security Board to look after the needs of the above workers. These workers will have to be provided with different social security schemes like provident fund, disability insurance, skill upgradation, and health as well as maternity benefits.

Image by Werner Heiber from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/photos/men-employees-suit-work-greeting-1979261/