new labour laws: The new labour codes came into effect on November 21, marking a major step by the central government toward a “self-reliant India.” With this move, social security coverage will now extend to 400 million workers, bringing more than half of the country’s workforce under protection for the first time. From cab drivers to gig workers, the new codes offer benefits that touch every section of society. Now, here are the key takeaways from the new codes.
Gratuity for just one year of employment
Currently, gratuity is awarded to employees who have completed five years of service or more. However, under the new law, employees will receive gratuity after just one year of permanent employment. This is great news for those working in the private sector.
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Special rules for working women
Under the new law, women will now be allowed to work in night shifts. However, this requires the woman's consent and safety measures in the workplace. Furthermore, this law guarantees equal pay and respect for women. Transgender people will also have equal rights at work.
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Double overtime pay guaranteed
The new labour code has made a significant decision regarding overtime. Employees have complained that companies don't pay them properly. However, the new labour law guarantees double overtime.
Legal recognition of Gig and platform workers for the first time
Gig and platform work have been defined in the new labour code. For the first time, gig workers and platform workers will gain legal recognition. They will be able to access social security benefits like PF, insurance, and pension. Aggregators will now be required to contribute 1-2% of their turnover, up to a maximum of 5%. The Universal Account Number (UAN) of the beneficiary ID will be linked, allowing portability for employees from other states.
Good news for contract workers
Contract workers will now enjoy the same protections as permanent employees. Young people will be guaranteed a minimum wage for their first job. Migrant and informal sector workers will be able to join the social security network.
Employee Health Check-Ups
This law takes special care of employees' health. Workers over 40 will receive a free annual health check-up. This means they will receive a free health check-up once a year. Contract workers will also be provided with health benefits and social security benefits. Workers in hazardous sectors will receive 100% health security guarantees, especially those in high-risk jobs like mining, chemicals, and construction.
Disputes between companies and employees
The new system will introduce “Inspector-cum-Facilitators” who will focus on guidance rather than punitive action. It will also set up two-member tribunals for industrial disputes, which employees can approach directly. The government says these codes will offer broader social security and dignity to workers, while giving industries simpler rules and better opportunities for capital investment.