Confused About The New Labour Codes And How They Will Affect You? Here’s All You Need To Know
There is a lot of buzz surrounding the new labour codes that are said to come into effect starting from July 1, 2022. The Central government has issued four labour codes that will directly affect the working class. These codes are pertaining to the wages, working hours, four-day working week and so on. But worry not, if you are still confused about these labour codes. Here is a gist of the codes and how they will affect them.
Labour Codes Highlights
The new labour codes allow an organisation to go for a four-day working week. Employers can opt for a four-day working week but as per the new labour codes, they will have to increase the input work hours from 8 to 12 hours on working days. In short, if the employees want a three-day weekend, they will have to work for more hours on the days they work.
When the new codes are implemented, the basic salary of the employee will become 50 per cent of the gross salary. This means that the in-hand salary of the employee will come down but the Provident Fund (PF) contributions from both the employee and the employer’s end will increase.
As per the new codes or the new wage codes, when an employee leaves an organisation, the company must pay the full and final settlement (FNF pay) to the employee after two days of them leaving. Earlier, the FNF payment was done by the company after 45 to 60 days. But as per the new codes’ directives, the employee will pay the final amount after two days from their last working day.
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The retirement and the gratuity amount of the employees will also increase when the new codes are implemented.
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First Published: July 01, 2022 10:46 AMStudy Reveals Women’s Earnings Continue To Drop After Childbirth. Is Gender Pay Gap Progress A Myth?
