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The New Labour Codes

  • Published
    1st Jul, 2022

From July 1, New Labour Codes 2022 can be implemented across the country.

  • These codes are related to wages, social security, industrial relations and occupational safety.

Salient points of the New Labour Codes 2022

  • Week-offs: Employees would be allowed to get three week-offs.
  • One week off: Any employee would have to work for not more than 48 hours. This means those employees who work for 8 hours every day will get only one week off.
  • Three week offs: However those who work for 12 hours every day will be entitled to three week-offs.
  • Two week-offs: Those who work 9 hours per day will get 2 week-offs.
  • Full-and-final rules: The new labour codes will also change the full-and-final rules. Those who decide to leave the country would have to be paid the final settlement amount within 2 days of exiting the company. 
  • Maternity leave: The maternity leaves for female employees will increase to 26 weeks.
    • No company can place them on the night shift without their consent. Proper facilities and security will have to be ensured. 
  • Salary structure: The salary structure of all employees will be changed. The basic salary component will be increased. Since the provident fund is calculated on the basis of basic salary, it will be increased. This means the provident fund of employees will increase but the in-hand salary will be decreased. 

Labour laws in India

  • In India, labour is a subject in the Concurrent List. 
    • Since it is in the Concurrent List, both the Parliament and the state legislatures can enact laws on it.
  • As per the Central Government, there were more than 40 central laws and more than 100 state laws on labour and related matters.
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