LABOUR CODES COME INTO EFFECT: WHAT WILL CHANGE, Pg15

Key Highlights:

• The Ministry of Labour and Employment has implemented new labour codes to bring significant changes to employment practices.
• Mandatory appointment letters for all workers will ensure transparency and job security.
• Gig and platform workers will now be included under social security coverage.
• The new codes introduce the concept of a floor wage, ensuring a statutory right to minimum wage payment for all workers.
• Employers are now required to provide free annual health check-ups for all workers.
• Women are now permitted to work at night and in all types of work with their consent and safety measures.
• The reforms aim to reduce the compliance burden through single registration, pan-India single license, and single return.

Detailed Insights:

• The pre-reform system lacked mandatory appointment letters, leading to a lack of formalization and job security for many workers.
• The Code on Social Security expands coverage to include gig and platform workers, addressing a significant gap in the previous system.
• The introduction of a floor wage aims to standardize minimum wages across different industries and regions, ensuring a basic level of income for all workers.
• Mandatory timely payment of wages seeks to provide financial stability, reduce work-related stress, and improve overall worker morale.
• Allowing women to work at night and in all sectors promotes gender equality and workforce participation, subject to safety measures and consent.
• The move to single registration and licensing simplifies the regulatory landscape, reducing the compliance burden for employers and promoting ease of doing business.

Key Concepts Involved:

• Floor Wage: A minimum wage level set by the government, below which no employer can pay.
• Gig Workers: Individuals engaged in short-term or freelance work, often through digital platforms.
• Social Security: Measures to ensure income security, healthcare, and other benefits for workers and their families.