A company must pay the full and final settlement of wages and dues within two days of an employee’s last working day following their resignation, dismissal or removal from employment and services, according to the new wage code.
The new reform already passed by the Parliament comprise pay, social security, labour relations, occupational safety, health, and working conditions.
The four new labour codes were formed by reviewing and combining the previous 29 Central labour laws.
While the government seeks to implement these new laws by July 1, many states are yet to ratify these regulations, which is a must before they can become effective, according to the constitution, as labour is on the concurrent list.
Also Read: Cryptocurrency Market Again Sees Decline
Currently, the common practice followed by businesses is to pay the complete settlement of salary and dues after 45 days to 60 days from an employee’s last working day, and in some cases, it goes up to 90 days.
Under the new labour codes, employees would be allowed to get three week-offs. Any employee would have to work for not more than 48 hours. This means those employees who work for 8 hours every day will get only one week off. However those who work for 12 hours every day will be entitled to three week-offs. Those who work 9 hours per day will get 2 week-offs.
Under the new labour codes, an employee’s basic salary will have to be 50 per cent of the gross salary. This will increase the PF contributions made by employees and employers.
For all the news update subscribe our YouTube channel ‘DNP India’. You can also follow us on FACEBOOK, INSTAGRAM and TWITTER.
