The parliament has passed four new labour rules, which will go into effect on July 1st. The new reforms bring on a variety of modifications.
Digital Desk: The parliament has passed four new labour laws, which will take effect from July 1st.
According to the implementation of the new laws, employees will see various changes as a result, including adjustments to salaries, working hours, paid leave, pensions, health, and working conditions.
Here are the laws and regulations that are needed to be followed by an employee:
Working hours and weekly off will be affected: Under new labor legislation, companies can now extend their employees' working hours from 8 to 12 hours per day.
However, the overall number of hours worked in a week cannot be changed. As a result, if your employer decides to increase your working hours, you will be entitled to three weekly days off.
Currently, the country's working hours and leave system are governed by the Factories Act of 1948 on a national level and the Shops and Establishment Act on a municipal level.
Working hours have been limited to 48 hours per week. Which will effectively establish a four-day workweek.
Overtime: Workers' maximum overtime hours have been increased from 50 to 125 per quarter. On the one hand, workers would be able to earn more money by working longer hours, including weekends, but it would also put pressure on them by taking time away from resting hours.
Leave: Under the current laws, the requirement for taking leave has been reduced from 240 to 180 days of work per year.
It indicates that, under current legislation, an employee must work for a minimum of 240 days in a company before being eligible to take a leave.
Therefore, the required working days have been cut from 240 to 180.
Regardless, the amount of paid time off received by employees will not be affected. Under the existing situation, you will receive one day of vacation for every 20 days of employment.
Therefore, the maximum amount of leave that can be carried forward is still 30 days.
The employer's encashment of leave has also become mandatory under the new labor regulations. If you have more than 30 days of carrying forward leave, your employer must compensate you or pay you to leave encashment for the days you have left over.
Work from home: The COVID-19 epidemic ushered in a new era of work-from-home culture.
Instead of being a one-time modification, WFH has become a common market practice across various industries.
WFH has been recognized in the draught model standing order, which is relevant to the service industry, due to the new labour legislation.
To achieve work-life balance for employees, employers will require new criteria for WFH involving working hours and overtime.
Salary, PF, gratuity, and other benefits: Employees will face the most difficulty in terms of in-hand or take-home pay.
Employees' take-home pay will be reduced due to the new laws, which may set the base wage at 50% of the gross salary, resulting in a higher PF payment for both the employer and the employee.
It will, however, increase the amount of gratuity received.
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