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India’s New Labor Law Codes: Major Changes & Challenges

India’s New Labor Law Codes: Major Changes & Challenges

by | Aug 20, 2021 | Human Resources

Are you up to date with the changes in labour law compliance? If not, this article is for you. The Indian labour law underwent drastic amendments when it consolidated 29 separate central labour laws into 4 simplified labour codes.

This move of the Indian government is considered a much-required change that has been pending for several years. Moreover, unlike any other typical law change, which disturbs the existing mechanism, the new amendments to the labour laws is a welcome move by almost all of the big industries and associations.

Let’s get the POV of a labour law advisor regarding these changes.

The most visible impact of the change is that it would make protecting labour laws less complex and would bring more clarity to its actual working. With 29 laws outlining the boundaries of the industry at work, it made the mechanism more sophisticated and confusing.

There are still some loopholes in the method of its implementation, something the industrial sector is demanding to be worked on.

While it looks quite easy to follow at the first glance, in order to truly understand the new changes, the crux of the major changes must be clearly understood.

Prompt Personnel, a popular labour law consultancy destination, has prepared a detailed list of the major changes that this amendment would bring.

  • Understanding the new Labour Code
  • The four new labour codes are:
  • Health and Working Conditions Code 2020
  • Industrial Relations Code 2020 and Occupational Safety
  • Code on Social Security 2020
  • Code on Wages 2019

Expert labour law consultants say that even though these received the president’s assent in 2019-20, some other aspects, such as identifying the workers for the purpose of social security through Aadhar and provisions related to minimum wages are yet to be brought into effect through some effective means.

The initiation of implementation of these codes would be delayed because each state is to identify their own rules under the new provisions. These would be finalised keeping in mind that the provisions, when implemented, must benefit a majority of the private sector.

Major changes
As per experts in labour law consultancy, some really important and noteworthy changes brought to the existing system by the labour law amendments are listed below: The most visible and appreciated change is that the new code lays down a standard definition of the term “wage”. Moreover, wages are to be maintained at a minimum of 50% in terms of the overall calculation of benefits and payments.

Changes in payments of wages are to apply to all employees and as well as establishments, irrespective of their pay bracket.
Another significant change is ensuring the compounding of specific offences along with the different conditions that apply in such scenarios.

One of the most important changes is also the introduction and explanation of the term “fixed-term employment”, which also brings along several prorated statutory benefits.

What is also added by the labour codes is that it lays down a limit on the period in which the due amounts can be determined. It also has a provision specifying that an enquiry against an amount due can only be initiated in the 5 years starting from the day when it was due and not after that.

It also lays down guidelines for the establishment of Negotiating Council and Negotiating Union for disagreement resolution.

Major challenges

Since the amendment brings a huge number of laws down to just a few, it certainly is not free of challenges. These challenges have mostly been voiced by the industrial sector in order to get their queries answered.

According to our labour law advisor, some of the most important challenges are listed below:
Mere consolidation or true reform exercise? An important question, which emerged during discussions revolving around the practicality of implementing the labour code, is whether the amendment which brings down the number of labour laws is truly a reform in the existing system or it is just a different mould of the same laws with fancier names.

These codes do not provide any details about the provision that deals with the obligation of the employer in specific situations like the pandemic.
There are many criticisms of the codes pointing out that, just like the old laws, it too fails to address the need to recognise and deal with unions in various sectors like IT, which do not have a lot of experience in this field.
The new code also fails to specify provisions in order to provide employees social security in MSMEs, small startups, etc.
The labour codes do not take steps in the direction of increasing job opportunities.

As an employer, ensure your firm follows labour law compliance. It is ever more critical to do so now.

Prompt Personnel is among the most sought after labour law consultants. Reach out to us for guidance and our experienced team will be happy to help.

6 Ways in Which Temporary Staffing can Boost Your Small Business

6 Ways in Which Temporary Staffing can Boost Your Small Business

by | Jul 17, 2021 | Human Resources, Temporary Staffing

Temporary staffing is when an organization hires employees for a pre-determined period, often tied to the completion of specific projects or seasonal needs. This approach allows businesses to get a temporary boost in workforce capacity without committing permanent hires. Temporary staffing services are widely used by both large and small companies across industries, allowing access to skilled professionals such as engineers, marketing managers, and lawyers for short-term assignments. 

 

Small businesses can benefit from staffing solutions for small business by collaborating with temp staffing companies in India. Temporary staffing provides flexible workforce solutions, ensuring that operations run smoothly even during high-demand periods. Reports suggest that 40-45% of the global workforce may soon consist of temporary employees, highlighting the growing acceptance of this model. 

 

How Small Businesses Benefit from Temporary Staffing 

 

Here are six ways in which small business owners can leverage temporary staffing to maintain efficiency and growth: 

 

  • Manage Seasonal Variations

    Peak seasons often require additional staff to handle increased customer demand. Temporary staffing allows small businesses to hire staff only for a few weeks or months as needed. Leading temporary business staffing companies manage recruitment, training, and onboarding, saving small business owners’ valuable time.

 

  • Save Costs

    Outsourcing temporary staffing eliminates the need for full-time HR staff while reducing recruitment and operational expenses. Temporary staffing services are a cost-effective solution for small businesses, allowing them to hire skilled employees without long-term financial commitments.

 

  • Build Your Network

    Partnering with a temp staffing company that connects small businesses to a large pool of skilled professionals. Positive experiences with temporary staff can enhance a company’s reputation, encouraging more talent to join in the future. This expands business credibility and helps in finding the right workforce conveniently.

 

  • Decide if Temp Staff is the Right Fit

    Hiring the wrong employee can hurt productivity and team morale. Temporary staffing allows businesses to “try before they buy.” If a temporary employee is not a good fit, the contract can end without long-term repercussions, ensuring the permanent team remains effective.

 

  • Boost Staff Morale

    Overworked employees may become disengaged, particularly when colleagues are on leave. Hiring temporary staff provides relief, prevents resentment, and ensures smooth workflow. A temporary boost in staff helps maintain morale and productivity during high-demand periods.

 

  • Focus on Business Growth

    Temp staffing companies manage payroll, benefits, taxes, and other legal formalities for temporary employees. This frees small business owners to focus on strategy, development, and growth, while the staffing agency handles the operational and legal complexities.

 

Why Temporary Staffing is the Future 

 

Temporary staffing solutions are ideal for small businesses facing fluctuating demand, employee leave, or project-based staffing needs. By providing employees stretching prompt solutions, these services ensure that organizations can operate efficiently without overburdening permanent staff. With a professional temp staffing partner, businesses gain flexibility, reduce costs, and improve overall workforce productivity. 

 

Conclusion 

 

For small businesses looking to streamline workforce management, temporary staffing offers flexibility, cost savings, and efficiency. At Prompt Personnel, we provide tailored staffing solutions for small businesses, helping organizations access skilled professionals on a temporary basis. Whether you need a short-term workforce or a temporary boost during peak periods, our experts ensure seamless hiring and compliance management, allowing you to focus on growing your business. 

 

The Ultimate Guide to Making the Best out of Contract Staffing

The Ultimate Guide to Making the Best out of Contract Staffing

by | Jul 4, 2021 | Contract Staffing, Human Resources

Contract staffing has been the most popular employment strategy opted by businesses and working professionals. It is a time-saving process as it eliminates the long stages of the hiring process. Organizations can hire temporary talent to start their work process as soon as possible. Contract workers provide your company with enormous benefits, but they also present certain challenges in the management. Responding to the hike in demand of contract workers in the market by engaging them is a strategic way to remain agile in today’s ever-changing business environment. Follow the top tips for working with the contract workers to get the most out of them.

1. Build your relationship with the contracting staff:

Most contractors are highly motivated and skilled workers. People go into contract staffing for multiple reasons. It could be the higher rate available for specialists, development of new skills, and opportunity to work at different companies, or the flexibility that comes with non-permanent positions. Understanding why they took up contract staffing can help you build stronger relationships with the staff. In most cases, the longer the contract period, the more benefits the position would offer to keep the employee engaged, supported, and valued. It’s not just the contract employees that will benefit from these initiatives, organisations can enjoy higher levels of engagement, retention, and knowledge-sharing which boosts employer branding to attract top contract talent.

2. Provide crystal clear guidelines:

Companies must provide clear instructions and guidelines to the contract workers. Ensuring ongoing updates around expectations and responsibilities assists with keeping the contractor in the loop and feeling satisfied with their work. Making sure that the contract staffing companies in Mumbai, the managers, and senior employees of your organization also stick to those guidelines is the key to giving a contractor autonomy. Offering feedback on their work performance makes the contract employee feel valued in the company.

3. Make them a part of the team:

The Staffing Companies in Mumbai train the employees about the values and goals of the company before joining to ensure that they are well synchronized with the rest of the team. Since they have just joined your team, it is possible that they might not understand the significance of a particular task as a part of the big picture. Contract employees have a broad perspective gained from the other workplaces and similar tasks that they can feed into your plan. Keeping the contract workers well engaged and informed will establish a rewarding relationship between a company and contractors, especially if the companies plan to engage with the same workforce in the future.

A well-trained staff is an asset to the company. Contract staffing services are a flexible way of fulfilling immediate and short-term goals. Contract staffing companies in India help in providing companies with the best suitable candidate for the desired job. They offer staffing solutions to supplement the HR strategy of the client with the right kind of talent. Since the contract workers are less demanding as they are temporary in nature, it is advisable to engage them in their services to make the most out of your money and time.

5 Things you need to know about Contract Staffing

5 Things you need to know about Contract Staffing

by | Jun 21, 2021 | Human Resources

Different from freelance and regular permanent jobs, Contract staffing jobs are unique in nature. While looking for new and innovative ways to save costs, contract staffing has been a preferred route for many companies in recent years. As opposed to permanent employees, contract staffing refers to the recruitment of short-term employees to fill in the gap in the company.

This way of hiring talent has increasingly become popular because of its benefits for organizations as well as job seekers. Contract staffing is inclusive of seasonal work, part-time work, and independent contracts. This serves immense benefits for people who want to enjoy more free time and flexibility around their work.

          1. Contract staffing has great advantages for employees

The modern workforce loves having more control over the working hours and the type of work they do. Contractual personnel regulation allows them to be flexible with their job on their terms. Instead of the traditional nine-to-five work schedule, job seekers can have the liberty over their needs and schedules. They have control over their workload, nature of work and they can decide the price they put on their talent. A person who specializes in a particular field of work can build many jobs around it every day. Contractual employees are free to sign up for multiple jobs and end up earning more compared to a permanent job with a similar profile.

          2. Employees can test and see if it works for them

Contractual jobs can be seen as an extended interview, but employees get paid for it! Employees can work for a role and see if they really like the work they are supposed to do. If they don’t have contractual jobs allow them to terminate the contract. The employers can check to see if the candidate is actually capable or not by hiring them on a contract. Contract staffing allows employers to ensure someone is the right cultural fit for the job at hand.

          3. Benefits of contract staffing for small businesses

The rapid change in the market conditions and work environment demands urgent needs for a matching workforce. Small businesses require strategies that can give maximum outputs in minimum inputs. The company can save money on the employee as they do not have to hire full-time staff for every position. For a growing business that needs an assistant for 10 hours a week, hiring a full-time assistant is expensive and a waste of resources. In such scenarios, hiring part-time help on a contract is the optimal solution.

          4. Why is it growing so fast?

The Internet has made it easier for people to connect to the world. Businesses are making more and more use of the cloud. Hundreds of files can be accessed within seconds. The workload on the employees has been reduced and they are using this time to stitch a preferred lifestyle for themselves. Many contract employees choose to work part-time to save more time for themselves for others who have a traditional full-time job are supplementing part-time jobs and opening up new doors of opportunities for themselves.

          5. The demand for contract staffing in the future

There are numerous benefits of contract staffing for both employers and employees. The companies end up saving the money they would have to spend on a permanent employee. They can choose to hire different people for different projects and get the job done at a much faster pace for almost the same expenditure. The employees, however, have the freedom to choose their dream job and still hold the right to flexibly leave it. They can be experimental with their job and explore as many opportunities as they like without limiting themselves to a permanent job. Employees can take up multiple jobs at a time to make a higher turnover than they would otherwise make. Due to all these benefits, the demand for contract staffing in today’s world and the trend is here to stay.

If you are concerned about how contractual recruitment works, we at Prompt Personnel can help you understand this better. With over 2 decades of experience in Staffing & Labour law Compliance, we provide end-to-end services right from recruitment, onboarding, payroll, compliance up to full and final settlement.

Interesting Things You Might Not Know about Labour Law

Interesting Things You Might Not Know about Labour Law

by | Jun 7, 2021 | Human Resources

Labour laws compliance play a vital role in protecting the rights of workers, their union, salaries, and more importantly, the link between the government and the workers. It is a protective code to make the labourers and employees aware of their rights and establish a standard law regarding labour work practice. The Ministry of Labour and Employment aims to protect and safeguard the interest of workers and attempts to create a healthy working environment for maximum productivity. The labour law advisors maintain harmony and balance at the workplaces by ensuring the proper compliance of labour laws.

 

 

The Historical background:

Labour came into practice as a conflict between workers and trade unions. The growth of labour law is an outcome of the worker’s desire to seek better working conditions, flexible work-life balance and the employers needed to have an economic and productive workforce for better production and sales. The labour law is, therefore, a product and component of the struggles between the interests of society. The International Labour Organization was one of the first organizations to manage these struggles.

 

The Evolution:

The labour law arose due to the demand of the labourers for better working conditions. Simultaneously, the employers wanted to restrict the powers of the workers and keep the labour costs low. The labour and employment law, also known as the Industrial law enacted by the British was meant primarily to protect the interests of British workers. The post-colonial law observed considerable changes when independent India demanded a direct relationship between labour and capital. The Trade Dispute Act, 1929 (Act 7, 1929) was the earliest attempt to establish a relationship between the employee and employer. This act abolished child labour restricted the working of women at night, allowed 8 hours of work in a day and anything beyond that would require overtime wages. Provisions in this act limit the strikes, lockout nights and disputes. The labour law consultancies ensure that the labourers would be provided with fair wages and fair working conditions and the employers would receive uninterrupted cooperation, continuous production and maximum productivity from the labourers.

 

The purpose of Labour Legislation:

To adapt to the economic and social changes of the modern world, the labour law fulfils three crucial roles: – It promotes a productive economy by facilitating the relationships between the productive individual and collective environment. – It acts as a framework where the employees, workers, and their representatives can interact about work-related issues and maintain harmonious workplace relations. – It provides a constant reminder that the fundamental principles of labour rights have gained societal recognition and need to be implemented. The labour law consultants can only fulfil their functions if they are in compliance with the constantly evolving labour market. The most effective way of ensuring that these laws are taken into consideration is the involvement of stakeholders and parties. The involvement of the stakeholders is a great way of ensuring the development and facilitation of the application of laws within and beyond the formally structured economic sectors. Labour Law is a vast topic filled with a number of complexities. If you are getting started or are in the process, you need an expert like Prompt Personnel to help you out and ensure your business remains totally compliant.

 

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