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The new labour rules in India have come with significant reforms, which have affected both the employees and employers in all industries. The government is hoping that the four labour codes will be flexible, more transparent, and friendly to the workers as the government consolidated 29 old laws to come with four labour codes. Such reforms are a four-day workweek, strengthened social security for gig and platform workers, tougher data privacy regulations, and streamlined compliance process by employers. Employees enjoy longer maternity leaves, minimum wages and accelerated full and final payments. Employers, conversely, have simplified registrations and understand better how to manage the workforce. All in all, the new rules are associated with balanced development, security and effectiveness. For more labour rights insights and workplace updates, visit our Labour Rights page.
Major Reforms for Employers
Four-Day Workweek Option
The four-day workweek is now possible to be implemented in companies provided that the workers fulfill 48 hours per week. This can be a 12 hour shift working but with a better schedule.
Stronger Data Privacy Compliance
In the Digital Personal Data Protection Act, 2023, employers should ensure express permission is obtained before collecting or utilizing data about the employee. They should also install vigorous security measures to curb abuse.
Reskilling Fund Contributions
In making collective layoffs, the employers are expected to provide funds to a reskilling fund which is meant to support jobless employees.
Revised Layoff Permissions
Companies now require the government mandate to lay off more than 300 workers, as opposed to the previous limit of 100.
Simplified Compliance Structure
The codes lower the cost of compliance on the way of simpler registration procedure and the launch of just one and common license on business.
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Key Benefits for Workers
Improved Work Flexibility
The employees will have a four-day working week and their unused leave can be taken to the next year.
Extended Maternity Leave
The statutory maternity leave has been increased to 26 weeks of paid leave providing greater support to the female workers.
Guaranteed Minimum Wage
The Code on Wages ensures that minimum wage is provided to all groups of workers in the country.
Enhanced Social Security
Gig and platform workers have now been offered a social security scheme which protects them when they were not before.
Quick Final Settlement
When an employee quits, he or she should be able to receive the full-and-final settlement within 45 days.
Safety for Female Night-Shift Workers
Female employees are only allowed to work the night shift when they agree to it and employers have to ensure that they provide adequate security and amenities.
Faster Leave Eligibility
Employees are entitled to leave once they have served 180 days as opposed to 244 days.
