Now you will get gratuity, double overtime money in every year… this is how your life will change with the new labor code.

The government has implemented four new labor codes

New Labor Codes: The central government has implemented four new labor codes by replacing the old labor laws. Union Labor and Employment Minister Mansukh Mandaviya has called it a historic step taken by Prime Minister Narendra Modi for the welfare of the workers. The purpose of these reforms is not just to change the law, but to provide dignity, security and economic strength to every worker. While giving information on social media X, PM Modi wrote that today our government has implemented four labor codes. This is one of the largest and progressive worker-centric reforms since independence. This empowers the workers, makes it easier to follow rules and also promotes ease of doing business.

40 crore people got ‘Kavach’

29 old labor laws made before and in the initial period after independence (1930-1950) have now been merged into four new codes. These are- Wage Code, Industrial Relations Code, Social Security Code and Occupational Safety Code. The government argues that today’s economy and working methods are completely different from the old times, so the rules should also be modern.

The biggest change is regarding ‘Appointment Letter’. Now it has been made mandatory to give appointment letter to every employee at the time of joining. This will bring transparency and stop the arbitrariness of companies. Apart from this, about 40 crore workers in the unorganized sector have now been brought under the ambit of social security. This simply means that they will also be able to get facilities like PF, ESIC and pension.

India’s Labor and Employment Minister Mansukh L. Mandaviya clarified on social media platform ‘X’ that these reforms will prove to be a milestone in the direction of making India a developed nation by 2047. Let us understand in detail how the life of a common employee is going to change with the implementation of these new rules.

Gratuity even on one year’s service

The biggest good news for those doing private jobs is regarding ‘Fixed Term Employees’ (FTE). Earlier, to get gratuity, it was necessary to work continuously for 5 years in the same company, due to which employees were often deprived. Under the new rules, fixed term employees are now entitled to receive gratuity only after one year of service.

Along with this, the situation regarding overtime has also been completely clarified. If an employee works more than the prescribed hours, he will have to be paid double the normal salary. At the same time, strict provisions have been made to ensure that salaries are paid on time, so that no one has to face financial stress at the end of the month.

New doors of progress open for women and gig workers

Special emphasis has been laid on gender equality in the new Labor Code. Now women will be able to work in night shifts also, provided there are adequate arrangements for their safety and their consent is taken. This step will give equal opportunity to women in high-paying jobs and all types of industries (like mining etc.). Women have also been guaranteed equal pay for equal work.

At the same time, ‘Gig and Platform Workers’ working on platforms like Zomato, Swiggy, Ola and Uber have been defined in the legal framework for the first time. Now companies (aggregators) will have to contribute 1-2% of their annual turnover for the welfare of these workers. Through the ‘Universal Account Number’ (UAN) linked to Aadhaar, they will be able to avail the benefits of their schemes in any corner of the country.

Special care for employees who have crossed the age of 40

Along with work, health has also been given priority. According to the new rules, employers will have to conduct a free health checkup once a year for all their employees who are above 40 years of age. This step has been taken to ensure timely identification of serious diseases and health safety of employees.

Apart from this, 100% health protection is guaranteed for workers working in hazardous sectors. The scope of ESIC has now been extended to the entire country, due to which people working in small institutions will also be able to get treatment facilities. Separate provisions have also been made for MSME sector, textile and IT sector, so that working hours remain balanced and employees are not exploited.

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