India’s new labour codes, what really changes for workers

India Today

Trade unions across India are protesting the Centre’s new labour codes, which replace 29 old laws with four major ones.

Transcript

00:00Trade unions across India are on the streets.

00:09Why?

00:10The centre's new labour codes.

00:13So what actually changes for you?

00:15Let's break down the four major labour codes.

00:22According to the government, these codes simplify the old maze of 29 separate labour laws.

00:29The government says all these codes will modernise Indian labour laws and bring social justice.

00:35But what does it mean for employees and workers in real life?

00:391. Who is recognised?

00:41For the first time, gig workers like Swiggy Delivery Partners and platform workers like Uber Drivers

00:47are officially recognised for the Social Security Code.

00:52Fixed term employees, which include both project-based IT workers and seasonal staff

00:57like wedding caterers or farm workers, even domestic workers,

01:01all are now eligible for Social Security, including PF, Gratty and other benefits.

01:07But how they will get these benefits will depend on the rules and funding

01:12that the centre and states still have to notify.

01:15India will now have one mandatory floor wage for all workers.

01:23That means that states that paid less minimum wage earlier will have to raise the minimum wages.

01:29Third, your salary structure changes.

01:32And this is the big one.

01:33Your basic pay cannot be less than 50% of your total salary or the CTC.

01:39So companies that loaded their salaries with allowances such as HRA, bonus or special allowances

01:45will have to revise the structures and increase the basic pay.

01:50Which means that employer contribution to PF, pension, ESIC and Gratty goes up based on basic pay.

01:58But basic pay rising also means your tax liability rises.

02:03More Social Security, but possibly more tax.

02:064. Job Letters Become Mandatory

02:08Every employee must get an appointment letter.

02:12No more under-the-table hiring or casual contracts without paperwork.

02:17Seasonal or short-term workers also need to be registered properly,

02:21meaning they can't be fired without proper procedure.

02:24Working Hours

02:25There is now a strict cap of 48 hours a week.

02:29Cross that and overtime becomes mandatory.

02:32And double the hourly rate.

02:34But here's the catch.

02:35Daily hours of work are flexible.

02:37And there are industry-specific rules for calculating and capping work hours.

02:43Industries like mining, transport, sales, even journalism will have different definitions

02:48which will have to be notified by the governments.

02:52And trade unions say that this loophole will let employers stretch shifts and avoid overtime pay.

02:58For women employees, women can now legally work night shifts and in jobs which were earlier labelled as dangerous.

03:06But their consent is mandatory and employers must provide safety measures.

03:12Also, equal pay rules from the 1976 Act are now merged into the wage code.

03:18Which means women have to get equal pay for equal work.

03:22So, what's the big picture really?

03:24These new codes consolidate and clean up India's labour laws.

03:28But many key details, wages, safeguards, working hour rules,

03:32still depends on notification that haven't yet been issued.

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