1. What exactly are the New Labour Codes and why did the government bring them?
Answer:
India merged 29 old labour laws into 4 new Labour Codes to make the system simpler, reduce paperwork, protect workers better, and make compliance easier for businesses.
These four codes are:
- Wage Code, 2019
- Industrial Relations Code, 2020
- Social Security Code, 2020
- Occupational Safety, Health & Working Conditions Code, 2020 know more
2. What changes for employees under the new labour laws?
Answer:
Employees may see:
- More structured salary (basic pay ≥ 50%)
- Higher PF & gratuity contributions
- Better social security coverage
- Clear rules on working hours, leaves, safety
- Protection for gig and platform workers
- Faster dispute resolution mechanisms
3. Will my salary structure change under the New Wage Code?
Answer:
Yes. The new Wage Code says Basic Pay + Dearness Allowance must be at least 50% of total salary.
This may:
- Increase PF & gratuity deductions
- Reduce take-home salary (slightly)
- Increase long-term benefits for employees
4. Do the new labour codes increase or decrease take-home salary?
Answer:
Take-home salary may decrease but retirement savings (PF & gratuity) will increase.
If your basic pay increases to 50% or more, PF will be calculated on a higher amount → you contribute more → employer contributes more too.
5. How will the new Labour Codes impact working hours and weekly offs?
Answer:
Working hours can be 48 hours per week.
This can be arranged as:
- 6 days × 8 hours
- 5 days × ~9.5 hours
- 4 days × 12 hours (if employees agree)
Weekly offs remain mandatory.
6. Are overtime rules changing under the new labour laws?
Answer:
Yes. Overtime beyond 8 hours a day or 48 hours a week must be paid at twice the normal wage rate.
7. What is the new rule on leaves? Do employees get more or fewer leaves now?
Answer:
Leave rules become more employee-friendly:
- Leave accrues after 180 days of work instead of 240 days.
- Minimum 1 earned leave for every 20 days of work.
- Carry forward and cash-out rules remain flexible.
8. Do the new labour codes allow a 4-day work week? How does it work?
Answer:
Yes, but only if:
- The total weekly hours remain 48
- The daily work hours may extend to 12 hours
- Employees agree to the arrangement
No salary is reduced for adopting this.
9. What is the impact of the new codes on gig and platform workers?
Answer:
For the first time in India:
- Gig workers (e.g., delivery partners, app drivers)
- Platform workers (working through apps)
are included in Social Security Schemes like:
- Insurance
- Pension-like benefits
- Welfare funds
10. What do small businesses (MSMEs) need to change under the new labour laws?
Answer:
MSMEs get:
- Fewer compliance filings
- Simplified registrations
- Single licensing system
- Digital records allowed
But they must follow new rules on wages, working hours, and social security.
11. How do the new labour codes protect workers in the unorganised sector?
Answer:
Unorganised workers (domestic workers, daily wage, small shop employees) get:
- National database registration
- Access to welfare schemes
- Social security benefits
- Better safety and health guidelines
12. Do contract workers and fixed-term employees get more protection now?
Answer:
Yes.
Fixed-term employees get:
- Same benefits as permanent workers
- Pro-rata gratuity
Contract workers get clearer rules on safety and working conditions.
13. What is the new Gratuity rule under the labour codes?
Answer:
Gratuity becomes easier and applies to:
- Contract workers
- Fixed-term employees (pro-rata)
- No mandatory 5-year rule for fixed-term employees
14. How will employers calculate PF under the New Wage Code?
Answer:
PF = calculated on Basic Pay + DA.
Since basic pay must be at least 50%, PF contributions will likely rise.
15. What does the new labour law say about work-from-home or flexible work?
Answer:
The law allows the government to frame rules for:
- Work-from-home
- Remote work
- Flexible hours
However, detailed WFH rules are not yet issued.
16. Are layoffs, retrenchment and closure rules becoming stricter or easier?
Answer:
For large companies (300+ employees):
- Easier to hire and fire compared to old laws
- But companies must give fair compensation & notice
- Dispute resolution is faster
17. Do the new labour codes increase job security for employees?
Answer:
Job security increases in:
- Maternity rules
- Safety & health standards
- Social security coverage
But employment flexibility increases for employers too, especially in large establishments.
18. What happens to maternity benefits and women’s safety rules under the new codes?
Answer:
Women get:
- Continued 26 weeks maternity leave (as per Maternity Benefit Act)
- Better safety measures
- More flexibility in working hours
- Night shifts allowed only with consent + strict safeguards
19. Are the new labour codes good or bad for the common man?
Answer:
Good for the common man because of:
- Better social security
- Higher retirement savings
- Protection for unorganised and gig workers
- Simpler rules for salary, leaves, and working conditions
Possible drawback: Slight reduction in take-home salary.
20. When will the new labour codes actually be implemented? Why is there a delay?
Answer:
The Codes are not implemented yet.
Reason:
- Centre notified the codes, but States must also notify their rules.
- Many states have not completed this process.
Implementation will happen only when Centre + majority States notify rules simultaneously.
21. What should employees and companies do to prepare for the new labour laws?
Answer:
Employees:
- Understand new salary structure
- Track PF & gratuity changes
- Learn rights under the new codes
Companies:
- Align HR policies
- Update wage structures
- Train staff
- Digitise compliance
22. Will minimum wages increase under the new labour codes?
Answer:
Yes.
The Wage Code introduces a National Floor Wage.
States must set wages equal to or above this level.
23. How do the new codes affect apprentices, interns and trainees?
Answer:
They get clearer definitions and protections, especially under the Wage Code and Social Security Code.
But full benefits apply based on type of engagement.
24. Do the new labour codes help reduce exploitation of workers?
Answer:
Yes.
By:
- Bringing unorganised workers under social security
- Strict safety standards
- Minimum wage clarity
- Clear contract rules
- Transparency for gig workers
25. Where can I read the new labour codes in simple language?
Answer:
You can read simplified explanations on:
- Ministry of Labour’s website
- PIB releases
- Government summaries
- Reliable legal blogs and official commentaries
To gain a much deeper understanding of the newly introduced labour codes, you may check out EBC’s Combo of New Criminal Major Bare Acts.
