The four new labour codes in India which eventually became effective on Friday bring with them sweeping changes that are designed to streamline the employment laws in the country, increase the benefits to the workers and reinforce the employment rights. Among the major reforms is the fact that employees who have served under a fixed-term will now also be eligible to receive gratuity after serving one year of continuous service as compared to five years before. There will also be a national minimum wage that will apply to all employees of all sectors rather than the previous trend of applying it in some selected industries.
The codes were announced by the Union government on Friday along with their final rules, the Labour Minister Mansukh Mandaviya emphasizing their effect on the social security and employment regulations. The laws are the first to formally define the gig and platform workers in their laws. Section 2(35) of the Social Security Code, 2020, defines a gig worker as a person who earns in another form of work arrangement that is not in the form of a standard employer-employee relationship.
Numerous new protections to workers also become effective. To ensure preventive health, employers must offer free annual medical examinations to their employees who are more than 40. An appointment letter should be written to every employee before he or she can be employed. The benefits will be favorable to the fixed-term workers just like permanent workers such as regulated work hours, leave entitlements and medical facilities. Any company should make sure that the payments of salaries are in time, and the IT firms should issue salaries before the 7th of every month.
The four codes, which include the Code on Wages (2019), the Industrial Relations Code (2020), the OSH Code (2020), and the Social Security Code (2020) are the new replacements of 29 previously existing labour laws. They are eventually implemented after years of being put off and provide companies with increased leeway in the hiring and firing of employees, in addition to enhancing safety measures and expanding social security.
Women will also be permitted to work at night shifts and even do jobs in the hazardous areas like mining provided they are willing and have safety measures taken.
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