New labor laws: The parliament has passed four new labor/work regulations, which are supposed to be implemented from 1st July. The new changes bring various changes in regards to compensation/salary, working hours, paid leave, Pension benefits, health, and working circumstances, for the employees.
The Central government is wanting to carry out new labor laws/ regulations from 1st July 2022. In the event that this gets executed, there will be a huge change in office working hours, employee’s provident fund (EPF) contributions, and in-hand salary.
While the office time and PF contributions are probably going to increase, the in-hand salary will probably diminish. The public authority is attempting to execute a set of four new Labor Codes at the earliest. The public authority said that the new labor law and regulations will support interests in the nation and increment business/ employment opportunities.
Under the new law office working hours and week offs: As indicated by the new labor/work regulations, companies can expand the functioning hours of employees from 8-9 hours to 12 hours every day. In any case, the complete work hours in seven days can’t be modified. In this way, assuming the organization chooses to expand your work hours, they should remunerate by three weekly offs.
At present the functioning hours and leave framework in the nation are overseen under the Factories Act of 1948 nationally and the Shops and Establishment Act locally. The weekly working hours have been covered at 48 hours every week. This basically prepares for a four-day work week.
Overtime hours as per new law: The maximum extra time hours for employees are expanded from 50 hours to 125 hours in a quarter.
Leave as per new law: The new regulations have diminished the eligibility required for benefiting leave from 240 days of work to 180 days of work in a year. It intends that according to the current regulations, the representative is first required to work for at least 240 days in an association to be qualified to take a leave.
The leave encashment with respect to the employer has also become compulsory under the new labor laws. It really intends that assuming you have over 30 days of conveying forward leave in your balance, the employer would be expected to give you remuneration or leave encashment for the additional days more than 30.
Work from home: Coronavirus pandemic brought a silver lining to work from home culture. WFH has now transformed into a common market practice across a few businesses, rather than just a brief change with a transitory hiccup. With the new labor law, Work From Home has been recognized in the draft model standing request, as appropriate to the complete service industry.
With this, organizations will also require new rules for Work From Home in regards to working hours and extra time, to guarantee a balance between work-life activities for the employees. In-hand salary, PF, gratuity, etc.
The in-hand salary will reduce for employees, as the new laws might put the base salary at 50% of the gross salary, leading to an increase in the PF contribution for both the employer and the employee. However, it will also lead to an increase in the amount received in form of gratuity.