Labor Codes: Updates & Cases

The Code on Wages Bill 2019 has become a topic of much chatter. The new rule states that the allowances cannot be more than 50 per cent of the total salary. That means, the basic pay has to be 50 per cent or more of the total pay. The rule will come into effect from […]

Labour and employment minister Santosh Gangwar on Wednesday said labour reform proposals will strike a balance between the interest of both the employers and the employees and will contribute to India’s self-reliance. While proposals such as universalisation of minimum wages and social security coverage would benefit workers; the reduction of compliance burden by way of

NEW DELHI: The government will soon set up three national boards to determine the minimum wages, social security parameters, and safety and health standards for workers under the new labour codes. The move is aimed at ensuring a smooth rollout of the four labour codes from the next financial year. Advisory boards will be set up for minimum wages

The proposed labour law code, as documented under the Code of Wages, 2019 not only overhauls the entire gamut of working standards but also brings some changes which can have lasting effects. As per the new code, if implemented, professionals putting in extra hours at work may come under the purview of overtime pay. And since the market

The four labour codes subsume 29 legislations. The purpose of each of these regulations was varied and hence the definition of wages under many of these regulations was also different. The codes are aimed at unification, simplification, and consolidation of these regulations, and hence have a common approach, which includes having a uniform definition of

The government has come out with a new and universal definition of ‘wages’ to bring in parity amongst the four new Labour Codes as against the varied definitions under the extant laws. The new Labour Codes are likely to be effective from April 1, 2021. According to tax experts, one of the most pertinent amendment

Professionals working extra hours may have something to cheer for in the new labour codes as the new law, if implemented in its entirety, would widen the purview of overtime pay to include all employees, including managerial staff. Not only that, the compensation for overtime should be at least twice that of the employees’ regular pay, as per the

NEW DELHI: After pushing the four labour codes through parliament, the Centre is set to identify state labour laws that are in conflict with them. The objective is to ensure that the reforms brought about by the codes are not undone by local laws and accordingly, states will be asked to modify or do away with them. The government

The government has issued the Draft Rules on Social Security Code (SSC) on November 13, 2020.  While the government’s uncharacteristic proactiveness in rewriting the labour laws is heartening, the output leaves a lot to be desired. The rules suffer from lack of clarity, poor drafting, gender bias and even violates its mother-instrument, i.e. SSC at least