Understanding the New Labour Codes
The Indian Parliament has enacted four Labour Codes to consolidate and simplify 29 existing central labour laws. These codes — the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code — aim to modernize India's labour framework while balancing the interests of employers and employees.
Key Employee Rights Under the New Codes
1. Right to Minimum Wages
The Code on Wages, 2019 ensures a universal minimum wage applicable to all employees, including those in the unorganized sector. The floor wage is set by the Central Government, and state governments can set higher minimum wages.
2. Right to Social Security
The Social Security Code, 2020 extends social security benefits including provident fund, employees' state insurance, gratuity, and maternity benefits to gig workers and platform workers for the first time.
3. Working Hours and Overtime
The new codes cap working hours at 8 hours per day with provisions for overtime payment at twice the normal rate. Weekly rest is mandatory, and annual leave provisions have been liberalized.
4. Protection Against Unfair Retrenchment
The Industrial Relations Code requires establishments with over 300 workers to seek government permission before retrenchment. Workers with more than one year of service are entitled to retrenchment compensation of 15 days' average pay for every completed year of service.
5. Right to Form Trade Unions
Workers have the right to form and join trade unions. The new code introduces the concept of a negotiating union or council to facilitate collective bargaining.
If you believe your workplace rights have been violated, contact Uttam & Associates for expert legal guidance on employment law matters.