A major change has been implemented in the corporate and working world of the country. By abolishing the old 29 labor laws, four new ‘Labor Codes’ have now been implemented. Now, to strictly implement these new rules, the Ministry of Labor and Employment has prepared a list of about two dozen strict rules (compliances) for the companies. Its direct objective is to fix the accountability of companies and protect the rights of employees, so that legal disputes can be reduced in future.
What is the government’s preparation?
Earlier labor laws were quite scattered, which often led to confusion and disputes between companies and employees. Now the government is bringing a detailed handbook of rules. According to a senior government official, this handbook will work like a ‘to-do list’ for companies. With this, no company will have the excuse of confusion during the transition from old to new law and no one will be able to escape from their legal responsibilities.
From salary to security… strict rules will be implemented
These four new codes include wages, social security, industrial relations and workplace safety. Under the new system, it is mandatory to follow seven basic rules from the day any new employee joins or starts a new company. Apart from this, four rules have to be followed every month. At the end of the month, companies will have to ensure that all employees get their salaries on time, PF (EPFO) and ESI (ESIC) money is deposited on time and a wage slip is compulsorily given to every employee.
New responsibility of companies on retrenchment and resignation
Apart from normal operations, six special rules will apply only when there is a special event. If an accident occurs at the workplace or an illness spreads, it must be reported to management within 24 to 72 hours. If an employee leaves the job, his full and final account will have to be paid within two days and gratuity within 30 days. The rules of maternity benefits will also be strictly enforced. Also, it will be mandatory for companies with more than 300 employees to take permission from the government before any kind of layoff or lockout.
Annual audit will be necessary
Companies will have to follow five major rules even at the annual level. These include updating minimum wage rates, renewing required licenses, and annual audits of workplace safety. Another important change is that companies will have to undergo health checkup every year for employees aged 40 years or more.