New Labour Laws 2022: Check how these new laws will be beneficial for you

From July 1, new labour codes can be implemented across the country. It can impact your salary, working hours and weekly offs. The Centre has finalised thefour codes related to wages, social security, industrial relations and occupational safety. Now it is up to the states to implement them.According to the code, the concerned company must have to pay the full and final dues within two days of the employee’s last working day after their resignation or termination of employment services. Officials said in December that "the new wage code would be introduced next year, i.e., 2022".

New Wage Code Implementation Date

It is expected to be implemented from July 1, 2022.Once the new codes are introduced, the take home salary would be lesser as the PF contribution would go up.Employees may have to work for 12 hours a day as the Labour Ministry made it clear that the requirement for a 48 hour weekly work is compulsory. There are also talks about working four- day in a week.

New Wage Code 2022: Full and Final Payment in just 2 Days

Currently, the complete settlement of salary and dues are done after 45 days to 60 days from an employee's last working day, and in some cases, it goes up to 90 days. But, according to the new rules, a company must pay the full and final settlement of wages and dues within two days of an employee's last working day following their resignation, dismissal or removal from employment and services.

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New Labour Code (2022): Changes in working hours

Under the new labour codes, employees would be allowed to get three week-offs. But, employees would have to work for not more than 48 hours. Employees who work for 8 hours every day will get only one week off. However those who work for 12 hours every day will getthree week-offs. Those who work 9 hours per day will get 2 week-offs. Hence, the offs depend on the work hours respectively. The new codes also allow increase in the maximum number of overtime hours from 50 hours to 125 hours.

What will be the impact on salaried employees by new wage code?

1. New wage code to impact your salary. Your in-hand salary will be reduced after implementation of Wage Code

The government's notification on Code on Wages 2019 may reduce the take-home pay while components like PFmight rise based on some factors.

2.New wage code to impact your allowance component that is a part of your salary

But, the employees would not be able to get more than 50 percent of their salary in the form of allowance.

3.After implementation of new Wage Code,PF will be higher

This also means that there will be a consequent rise in PF contribution of the employee.

4. New wage code could bring about a longer working hour, though your week off will be more than 2 in that case.

Though it is compulsory to work for 48 hours, the week off may increase depending on working hours.

5. After the implementation ofnew wage code, there could be big changes in Earned Leave policy

30 holidays in 1 year are now allowed in Government departments, however, defense employees would get 60 holidays in ayear.

New Leave Policyintroduces in Wage Code

The maternity leaves for female employees will increase to 26 weeks. Also, companies cannotplace them on the night shift without their consent. Proper facilities and security should have to be ensured. Also as mentioned above, Earned Leave Policy might be impacted the most.employees in India may be able to enjoy a four-day workweek, as opposed to the current five-day workweek from 2022-23. Weekly-offs would depend on the number of working hours.If this code is implemented, the labour force will be entitled to leaves after every 180 days against 240 days earlier.

Hence the new labour code has many advantages for the employees. Some people consider that certain changes should be made in the laws, while some are eagerly waiting for it to be implemented. The new rules also talk about Work from home which was implemented during the COVID-19 pandemic.The new rules have been drafted to improve the well-being of employees.

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