Labor code: If the company makes the employee overtime even for 15 minutes, then he will have to pay his money. Now the fixed limit was half an hour. If the company and the employees together decide that they will do 5 or 6 days’ work in 4 days, then both the parties can find a way out for this.
Four labor codes will come into force in the country simultaneously. The preparations are complete and soon it can be implemented. The central government is fully convinced about this and the state governments have also expressed their willingness to implement the new labor code. There may be some inconveniences initially due to the implementation of the new labor code, but according to the government, many benefits will be available in bulk in the long run. As the salary in hand may be less, but the scope of Provident Fund will increase and companies will have to add more money to the PF of the employees. Overall, a serious impact can be seen on the basic salary and provident fund of the employee. This effect will be mixed, that is, some profit and some loss.
The 4 wage codes implemented by the Union Labor Ministry are related to industry, wage or salary, social security, health security and mode of work. 44 labor laws of the central government have been included in these four new wage codes. Most of the things have been agreed between the central and state governments regarding these wage codes, but some issues have remained stuck, due to which the matter is still pending. These wage codes were to be implemented from April 1, 2021, but this matter also comes under the jurisdiction of the states, hence it is hanging.
where is the screw getting stuck
The matter of labor comes in the Concurrent List of the Constitution. In such a situation, any law related to this has to be notified to the Center and the states. The central government cannot wait for the states for a long time. It is believed that she will issue a notification on her behalf in a few months. Some states, however, have worked on the wage code and have issued drafts. The Economic Times has learned from sources that these states are UP, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand. According to the new wage code, the allowance will be fixed up to 50%. This means that half of the total salary received by the employee will be basic. Provident fund money will have to be deposited on the basis of basic salary only.
will anything change
Companies till now divide the allowance into different parts to keep the basic salary low. Due to this, less money has to be deposited in the Provident Fund and income tax is also deducted less. Now in the new wage code, provident fund will have to be deposited at 50% gross salary. If this rule is implemented, then the salary in hand will be reduced, while the money received from the companies will increase. Companies will have to change the entire salary structure as soon as the new law is implemented. The Industrial Relations Code is to be implemented in the new wage code. In this, there will be some restrictions for companies with more than 300 employees. There will be no retrenchment without government permission The company will not be able to close without government permission. At present, there is no such compulsion on a company with 100 employees.
what will change
Apart from the employees working in any organization, the wage code will also be applicable to the workers of the unorganized sector. Under this, there will be changes in the provisions related to the salary and bonus of the employees. This will also ensure that employees doing the same level of work in every industry, business, trade etc. will get the same salary. All 9 laws related to social security and maternity benefits have been merged into one.
Under the Industrial Relations Code, the Industrial Dispute Act, 1947, the Trade Union Act, 1926 and the Industrial Employment Act, 1946 have been included in a law. After the implementation of this code, it will help in improving the business environment in the country. The health and safety of workers will be regulated under the OSH code. If there are 10 or more employees in any organization, then it will be mandatory to follow this code.
work 48 hours a week
In the new law, companies have been asked to ensure that all the employees who work with them, should make arrangements to get full salary. Companies have been asked to ensure that employees get facilities like PF and ESI. According to the new labor laws, a company cannot shirk saying that an employee has come through a contractor, so he cannot be given facilities like PF and ESI.
If the company makes the employee overtime even for 15 minutes, then he will have to pay his money. Now the fixed limit was half an hour. If the company and the employees together decide that they will do 5 or 6 days’ work in 4 days, then both the parties can find a way out for this. There will be no compulsion on the part of the government in this.