The new labor laws of the government will become effective on July 1, 2022. The government wanted to safeguard the employees’ welfare and social security by amending the labor code. Workers in both the organized and unorganized sectors would benefit from these four labor codes.Â
The Ministry of Labor and Employment United States will shortly introduce four labor codes to consolidate 29 central labor regulations. The new labor regulations will cause a paradigm shift in the job landscape in India, from working hours to the wage an employee receives in cash, to meet the needs of the current day. The government wanted to safeguard the employees’ welfare and social security by amending the labor code. Once they are put into place, the new labor standards are expected to bring the rules about how employees and employers work together into the 21st century.
Labor legislation 2022:Almost certainly, the new labor laws of the federal government will become effective on July 1, 2022. All industries and sectors, as well as the way we are accustomed to working, will undergo major transformations as a result of this. The laws governing employee working hours, provident funds, and wage structures will all face significant modifications.
Why Have Labor Codes Been Implemented?
The government has implemented labor rules to modernize employment restrictions. The goal of the aforementioned labor legislation was to streamline and modernize employment standards. Srinivas BR, Partner at DSK Legal, said the Industrial Relations Code, 2020; the Occupational Safety, Health, and Working Conditions Code, 2020; and the Code on Social Security, 2020 were all approved by Parliament in September 2020, according to Srinivas BR, Partner at DSK Legal.
What do the Labor Laws Guarantee?
Employees will have the entitlement to receive minimum salaries, and their social security coverage will be enhanced under the new labor regulations. The revised codes are advantageous for both the organized and unorganized sectors.
“The Code universalizes the right to minimal and timely wage payments, increases Social Security coverage, empowers and protects women, and makes life easier for interstate migratory workers.” In addition, these adjustments are a sort of preventative step implemented in advance for limited problems in the aforementioned domains, according to Anushmaa Arora, the principal and founder of the ABA Law Office.
These labor reforms are intended to improve the country’s ease of doing business. Employment creation and worker output will also increase. According to Aditya Chopra, Managing Partner of Victorian Legalise Advocates & Solicitors, workers in both the organized and unorganized sectors would enjoy the benefits of these four labor codes.
Variations in PF Contributions and Wages
“Under the new wage code, the take-home pay of employees will shift dramatically.” Arora says that as long as the basic pay is at least 50% of the gross monthly wage, the PF fund will grow and be helpful to the worker when they retire.
According to Sameer Jain, Managing Partner at PSL Advocates and Solicitors, “The basic salary has been set at 50 percent of the cost to company (CTC), up from 35 to 40 percent previously.” “This will increase the PF contribution set at 12 percent for both employer and employee, thereby decreasing the employee’s take-home pay.”
Modifications to Working Hours and the Four-Day Workweek
Changes to the workweek are expected to be imposed as a result of the new labor regulations. “Companies will be allowed to require employees to work four days instead of five, and there will be three weeks of vacation.” Regular work hours might increase from 9 hours per day to 12 hours per day. If a corporation chooses this option, working days would be limited to four per week, with three mandated days off. Chopra stated that the overall weekly working hours would stay at 48 hours.
When Will the Labor Laws Take Effect?
While several news sources assert that these modifications will be introduced on July 1, some contend that they will be implemented in the third quarter of the current fiscal year. According to media sources, the labor codes are expected to go into force in the third quarter of this fiscal year. According to Srinivas BR, there has been no formal communication from the government in this respect.
