Labour Code Solutions

Widened coverage: No wage threshold for employees, definition of employer includes ‘contractor’ and ‘legal representative of deceased employer’, etc.

New definition of ‘wages’: Applicable to all employees; specified exclusions and conditional inclusions specified, cap on benefits in kind

Timeline for full and final settlement: Two days from the date of removal/resignation/retrenchment/dismissal

Stringent penal implications: Introduced for non-maintenance of registers and records under the Code of Wages, 2019 5 Payment of wages and deductions: Payment vide cheque, online mode; no unauthorised deductions allowed from the wages

Voluntary coverage: Opt in/opt out of social security schemes

Introduction of new category of beneficiaries:

Platform workers, gig workers, fixed-term employees, etc.

Introduction of the concept of holding the ‘officer in charge’: Who will be held responsible for any default in relation to payment of gratuity and contribution towards ESI

Increase in quantum of gratuity payment:

• New category of employees introduced i.e.‘Fixed term workers’ rendering services forless than 5 years;
• Working period of 3 years for journalists introduced;
• Gratuity payable to the contract labourers as well, in line with eligibility criteria are set out in the Code

Concept of fixed-term employment: Introduced with benefits not be less than of a permanent worker

Conditions for strikes and lockouts prescribed: No strikes and lock outs without giving proper notice in compliance with the norms laid down in the code

Standing orders: Required in establishments where 300 or more workers are employed

Retrenchment, lay-off and closure provisions: Not to be applicable if workers are

Concept of core and non-core workers: Employment of contract labour in core activities of any establishment is prohibited (with certain exceptions)

Canteen and crèche facility: Mandated for specified establishments

Special provisions for women: Consent of female employees required for working before 6 am and after 7pm along with other safety measures

Concept of leave rules and leave encashment introduced 

Free annual health check-ups: Mandated for specified employees of specified establishments