New Labour Code: Employees in India have been demanding the implementation of labor code rules for a long time. With this, the employees will get 3 days off instead of 2 days in a week. However, the working hours will increase but rest will be given for three days. However, due to the general elections due next year, the labor code rules are less likely to be implemented
New Labor Code : Employees in India have been demanding the implementation of labor code rules for a long time. With this, the employees will get 3 days off instead of 2 days in a week. However, the working hours will increase but rest will be given for three days. However, due to the general elections next year, the labor code rules are less likely to be implemented. There is little hope of its implementation before the general elections. The rules of the labor code have been made to improve the interests of the employees.
These changes will come due to the implementation of labor code rules
Under the rules of labor code, the working hours of the employees can be increased from 8 to 9 hours to 12 hours. However, under the new rules, employees will get 3 days off in a week. The Modi government plans to implement the labor code rules at the earliest, but there is little hope of its implementation before the elections next year. Consensus has not been reached in all the states regarding the rules of the Labor Code.
These rules are included in the labor code
Under the rules of the labor code, the companies will have the right to increase the working hours to 12 hours in a day but then one more day off will be given. Means the employees will be able to get leave for 3 days. The employees will have to work 10 to 12 hours per day for four days. The new laws mean that the maximum number of hours of overtime will increase from 50 (under the Factories Act) to 125 hours.
Salary coming in hand will decrease but PF will increase
As per the rules of labor code, the basic salary should be 50% or more of the total salary. Due to this, the salary structure of most of the employees will change, due to increase in basic salary, the amount of PF and gratuity will be deducted more than before and the money coming in hand will decrease.
With the increase in contribution to gratuity and PF, the money received after retirement will increase. Increase in PF and gratuity will also increase the cost for the companies as they will also have to contribute more towards PF for the employees. This will have a direct impact on their balance sheet as well.
Consensus has not been made in all the states
Labor in the country will be benefited by the implementation of all the four labor code rules. However, consensus has not been reached in all the states regarding these rules. There are 29 Central Labor Laws in India divided into 4 codes.
The rules of the code include 4 labor codes like wages, social security, industrial relations and occupation safety and health and working conditions etc. These four codes have been passed by the Parliament, but apart from the Centre, the state governments are also required to notify these codes, rules. Only after that these rules will be implemented in the states.
