New labour codes with the President’s approval have been passed on to be implemented by the Centre after its approval from July 1. The government has tried to focus on four different codes dealing with wages, industrial relations, social security, occupational safety, and health and working conditions.
Both organized and unorganized workers will be subject to the legislation, according to the Center’s pamphlet on the new codes. Giving those working in the unorganized sector a Unique Account Number(UAN) will bring them within the law. The government pamphlet has also mentioned the Employees Provident Fund, and Employees Pension Fund along with all medical benefits will be available to a company’s employees. All employees will also be covered under the Employees State Insurance Corporation (ESIC).
Various questions have arisen concerning the labour codes. The first question is regarding the total work time. According to the new rules the companies have to adhere to the daily and monthly working hours, 12 and 48 respectively. The rules can be manipulated by the companies depending upon their workload which means that if they keep their daily limit at 12 working hours then the total working days will be reduced to 4 days a week with three days of holiday. And because the number of leaves is increasing the paid leaves will not be affected.
Centre’s new labour laws
Previously, a recruit could only take leaves after working for 240 days. But that number has been lowered to 180 days. The Factories Act currently permits all employees to take a 12-day leave of absence after 240 days of employment. Albeit the maximum is now 180 days. Employees who previously could only do so after leaving the firm can now encash their leaves under the new guidelines.
Regarding pay, regulations provide that employees should get a base salary that is greater than 50% of their gross pay. The amount set aside for contributions to the Provident Fund would rise as a result of this. Although this would result in a reduction in the cash payment. However, it would eventually boost the gratuity paid out at retirement. According to the plan, all businesses are required to pay their employees’ salaries within two days of their departure.
