New changes in labour codes: min.wage, gratuity payments
New labour codes: The new labour codes reduce gratuity eligibility for fixed-term employees to one year, ensure minimum wage for all.
All fixed-term employees will become eligible for gratuity payments after one year of continuous service, instead of five years earlier, and a national minimum wage will cover all workers, instead of a few scheduled industries, according to the provisions of the four labour codes that came into effect Friday.
New labour codes: National minimum wage, gratuity payments after one year, among key changes
On Friday, the Union government issued notification over the four codes passed by Parliament amidst 2019-20 and the rules needed to make them operational on Friday, Union labour minister Mansukh Mandaviya said, briefing reporters.
The codes also define employment and platform work for the first time. Section 2(35) of the Code on Social Security, 2020 defines an employee as “a person who participates in a work arrangement and earns from such activities outside of a traditional employer–employee relationship”.
Among major changes, employers across sectors need to mandatorily offer free annual medical checkups to workers above the age 40 aimed at fostering preventive healthcare. Also, no worker can be hired without being issued a written appointment letter.
Fixed-term employees will get the same benefits as permanent staff, including leave, regulated working hours and medical benefits. Though the codes require all companies to pay salaries on time, IT firms must release salaries by the 7th of every month.
News Edit KV Raman