NEW UPDATED LABOR RULES

 ." Code on Wages, 2019 – pay, minimum wage, bonus, equal pay

Industrial Relations Code, 2020 – unions, disputes, layoffs

Code on Social Security, 2020 – PF, ESI, gratuity, gig workers

OSH Code, 2020 – safety, health, working conditions 166e

Key Changes That Affects - 

1. The 50% Wage Rule

Basic + DA must be ≥ 50% of CTC.

If your basic is currently <50%, employer must restructure salary.

Impact: Higher PF + gratuity deductions = lower take-home now, bigger retirement corpus later.

Note: Annual performance bonuses don’t count as “wages”, but overtime allowance does. 

2. Gratuity After 1 Year

Fixed-term employees: Eligible for pro-rata gratuity after 1 year of continuous service.

Permanent employees: Still need 5 years. 

3. Working Hours & Overtime

48-hour week limit stays. 4-day, 5-day, or 6-day weeks all allowed if total ≤48 hrs.

Overtime: >48 hrs/week must be paid at double the regular wage.

4. Faster Settlements

Full & Final settlement: Must be done within 2 working days of exit.

Salary credit: By 7th of every month under new proposals. 

5. Appointment Letters Mandatory

Under Rule 6 of OSH Code, every employee must get a standardized appointment letter before joining, mentioning:

Designation, category, place of work

Wages, allowances, broad duties

EPFO/ESIC benefits

This now applies to all companies, not just specific sectors. 

6. GIG & PLATFORM WORKERS COVERED

First-time legal recognition.

Eligible for social security schemes funded by Centre, States, and aggregators.

Aggregators to contribute 1–2% of turnover. 

7. MORE FLEXIBILITY FOR EMPLOYERS

Retrenchment threshold: Govt approval now needed only if 300+ workers, up from 100.

Women: Can work all sectors + night shifts with safeguards. Equal pay mandated.

8. DIGITAL Compliance

One registration for all 4 codes

Single online annual return instead of multiple filings

Inspector-cum-Facilitator: shift from raids to helping compliance