Introduction
New Labour Codes in India—Code on Wages (2019), Social Security Code (2020), Industrial Relations Code (2020), and Occupational Safety, Health & Working Conditions Code (2020).
New Labour Codes. It covers the Code on Wages (2019), Social Security Code (2020), Industrial Relations Code (2020), and Occupational Safety, Health & Working Conditions Code (2020). These reforms consolidate 29 existing laws into four streamlined codes, aiming to simplify compliance, expand social security, and ensure safer workplaces. Employers and HR professionals must understand these provisions thoroughly to implement them effectively and avoid penalties. The Code on Wages introduces a uniform definition of wages, including Basic Pay, Dearness Allowance, and Retaining Allowance, while excluding components such as House Rent Allowance, conveyance, overtime, commission, employer contributions to PF, and gratuity. However, exclusions cannot exceed fifty percent of total remuneration. This definition impacts PF, ESI, bonus eligibility, overtime, and leave encashment. Timely wage payment is mandated by the seventh day of the month, and full and final settlement must occur within two working days of separation. Overtime beyond forty-eight hours per week requires consent and is payable at twice the normal rate. The Social Security Code integrates EPF, ESI, gratuity, and maternity benefits while extending coverage to gig and platform workers. Fixed-term employees now enjoy parity with permanent employees and become eligible for gratuity after one year of service. Establishments with fifty or more workers must provide crèche facilities, and annual health check-ups are mandatory for employees aged forty and above. Gig and platform workers receive formal recognition, with aggregators contributing one to two percent of turnover to a social security fund. The Industrial Relations Code raises the threshold for government approval of layoffs, retrenchment, and closure to establishments with three hundred or more workers. It introduces a reskilling fund requiring employers to deposit fifteen days’ wages for retrenched employees. Grievance Redressal Committees must include a woman member, and Standing Orders are mandatory for establishments with three hundred or more workers. Strikes and lockouts now require fourteen days’ prior notice across all sectors, promoting industrial harmony. The Occupational Safety, Health & Working Conditions Code emphasizes safe and healthy workplaces through single registration, statutory appointment letters, and digital inspections. Women are permitted to work night shifts with consent and mandatory safety measures, including secure transport and CCTV surveillance. Amenities such as drinking water, restrooms, first aid, canteens for establishments with one hundred or more workers, and crèche facilities for fifty or more workers are compulsory. Safety committees are required for establishments employing five hundred or more workers, and contract labour is prohibited in core activities except under specified conditions.