New Labor Code: Even though the Modi government at the Center is preparing to make changes in labor laws, but its implementation in the current financial year 2021-22 seems difficult. That is, till March 31, 2022, neither your office hours will increase nor you will have to work for 12 hours. Apart from this, your in-hand salary is also likely to be affected.
According to the news agency language, the implementation of the four labor codes in the current financial year 2021-22 looks difficult due to the delay in drafting the rules by the states. A source gave this information. Another reason for the delay in implementation of labor codes is political reasons i.e. the Uttar Pradesh assembly elections, the source said.
The salary in hand will decrease
The implementation of these laws is important from the point of view that as soon as they are implemented, the wages in the hands of the employees will come down and companies will have to bear the burden of high provident fund liability. Under the new labor code, the limit of allowances will be 50 percent. This means that half of the total salary will be the basic salary of the employees. Provident fund contribution is calculated as a percentage of basic salary. This includes basic pay and dearness allowance.
Working hours proposed to be 12 hours
In the new draft law, a proposal has been proposed to increase the maximum working hours to 12. The draft rules of the OSCH Code provide for extra work between 15 and 30 minutes to be counted as overtime for 30 minutes. Under the current rule, less than 30 minutes are not considered eligible overtime. The draft rules have prohibited any employee to work continuously for more than 5 hours. Directives to give half-an-hour rest to employees after every five hours are also included in the draft rules.
The source said that the labor ministry is ready with rules under the four codes, but states are slow to finalize these rules under the new codes. Apart from this, the central government also does not want to implement these codes for political reasons. Assembly elections are likely to be held in Uttar Pradesh in February next year. In such a situation, the government does not want to implement these codes right now.
Passed in parliament
These four codes have been passed by the Parliament, but apart from the center, the state governments are also required to notify these codes, rules. Only then can they be implemented in the respective areas. The source clarified that it is not possible to implement these codes in the current financial year.
To be implemented from 1st April, 2021
Once these codes come into force, there will be a major change in the method of calculation of Basic Pay and Provident Fund (PF). The Labor Ministry was to implement the Industrial Relations, Wages, Social Security and Occupational Safety, Health and Working Conditions Code from April 1, 2021. These four codes will harmonize 44 central labor laws.
The ministry has finalized the rules under these four codes, but as many states are not in a position to notify these rules, their implementation is not possible as of now. The source said that some states have worked on draft rules for the four labor codes. These include Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand.
