The four newly introduced codes--the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 and the Code on Social Security, 2020 aim to create a more inclusive and equitable labour environment where contract workers receive stronger rights, improved working conditions, and enhanced socio-economic security.
As per the new laws, no employer shall pay any employee less than the minimum wage notified by the Government. Previously, minimum wages applied only to scheduled employees, but now they cover all employees.
The Government shall review or revise minimum rates of wages ordinarily at intervals not exceeding five years. Also, the Government shall fix a minimum rate of wages for time work, piece work for different wageperiodsd like by hours, day or by month, based on the skill of the employee and the arduousness of work.
Additionally, the Floor wage will be fixed by the Government considering the minimum living standards of an employee, including food, clothing, etc.
In case of overtime, the employer will have to pay at least twice the normal wage rate for any work beyond normal working hours. Moreover, as per the codes, employers have to issue wage slips electronically or in physical form to the employee on or before payment of wages.
The period of limitation for filing of claims by an employee has been enhanced to three years, as against the existing time varying from six months to two years.
The laws also ensure that the employer has to pay or cause to be paid wages to all employees, based on the type of employment, meaning that in the case of a daily wage, the amount should be paid by the end of the shift. Similarly, in the case of a weekly payment, the employer needs to pay wages before a weekly holiday. For a fortnightly cycle, the payment should be made within two days of the end of the fortnight and for a monthly pay cycle, irrespective of strength, the payment should be made within 7 days of the next month.
Additionally, if an employer terminates an employee, they need to clear the dues within two working days.
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