Key Proposals and Labour Codes

The notification of the long-stalled labour codes brings several key proposals into effect:

• Timely Payment of Wages: Ensures wages are paid on time with a maximum deduction limit of 50%.
• Equal Remuneration: Establishes equal pay for equal work irrespective of gender.
• Flexible Working Hours: Limits working hours to 12 hours a day and 48 hours a week.
• Overtime Compensation: Overtime rate set at double the normal wage.
• National Floor Wage: Sets a baseline for wages across the country.

Four New Labour Codes

• Code on Wages: Aims for uniform structure for wages, bonus, and related matters. The code includes basic pay, dearness allowance, and retaining allowance but excludes bonuses and other allowances.
• Industrial Relations Code: Focuses on creating a balanced industrial relations environment.
• Code on Social Security: Extends social security benefits to unorganised, gig, and platform workers.
• Occupational Safety, Health and Working Conditions Code: Details safety and health regulations at workplaces.

Minimum Wages and Work Conditions

• Minimum Wages: Must be paid to all employees, regardless of sector, with periodic revisions not exceeding five years.
• Payment Schedules: Specifies timeframes for wage payments based on employment terms (daily, weekly, fortnightly, monthly).
• Working Hours and Rest Days: Daily working hours range between 8 to 12 hours, with a weekly cap of 48 hours, including rest intervals.

Employment Regulations and Social Security

• Fixed Term Employment (FTE): Allows hiring under fixed-term contracts with benefits equal to those for permanent workers.
• Social Security Expansion: EPFO provisions now apply to all establishments with 20 or more employees. Aggregators must contribute 1-2% of annual turnover for social security of gig workers.

Equal Opportunities and Safety Provisions

• Equal Pay: Ensures non-discrimination in wages based on gender.
• Women’s Night Work: Permits women to work at night with consent and safety provisions.
• Annual Health Check-ups: Mandates free annual health examinations for employees.

Safety Committees

Establishments with a significant number of workers must form safety committees for enhancing workplace safety. Specific thresholds are set for different sectors:

• Factories: 500 or more workers
• Building & Other Construction Workers (BOCW): 250 or more workers
• Mines: 100 or more workers