New Labour Laws In 2022: A Comprehensive Analysis For Workers & Labor Law Advisors

New Labour Laws In 2022: A Comprehensive Analysis For Workers & Labor Law Advisors

The Indian Central Government is all set to implement the four new labour codes on wages, social security, industrial relations, occupational safety and working conditions that are stated to swing into action and effect from the next fiscal year.

As per top labour law consultants, if the new laws witness a successful implementation across all twenty-eight states and eight union territories embedded in India, then the speculation about a four day workweek period will come to an ecstatic halt.

More about the New Labour Codes

To accentuate, according to the statement of a senior government official, draft rules on these four new labour laws have been pre-published by at least 13 states. But since labour is a concurrent subject meaning, concerned with both the central and state governments, the central government wants all the states to implement these four new labour laws in one go ubiquitously.

The Major Changes & Amendments as per the New Labour Codes

 

4 Day Workweek Period

The implementation of the new labour codes will usher in a new era of a four-day workweek period as opposed to the five-day workweek period currently. Along, with these, employees across the nation will be able to enjoy and savour a three-day holiday per week.

48 Hours Work Per Week

Another impact along with the implementation of the new labour laws, is that the employee will work 48 hours per week only. The employee will also be entitled to enjoy the freedom and flexibility to complete the desired assigned work in a 4,5, or 6 days time frame per week.

12 Hours Work Per Day

To enjoy the four day workweek period and relish a 3-day mini-vacation per week, the employees in the government sector are expected to work 12 hours per day. As the Indian government is very much adamant about completing the 48 hours per week standard quota laid by the International Labour Organization.

Less in-hand salary, More Provident Fund

Under the new labour law compliance, the employees and the firms will have to contribute and absorb a higher value of the provident fund in return for less in-hand pay or salary.

For example, the contribution to the provident fund is calculated based on the percentage of the basic wages involving the basic pay and dearness allowances. According to the present regulations, employers percentage-based contribution towards the PF balance depends on the employees basic pay and dearness allowance.

Thus an increase in the basic pay will automatically hike the deduction of the provident fund, thereby affecting and reducing the in-hand salary of the employee.

More Work, More Payment

Much to add to the employee’s glee if the government employee works overtime even for more than 15 minutes, then standard working hours, it will allure an overtime payment to them.

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