New Labour Codes: What’s in it for you — what women, fixed-term workers, IT employees should know

The Central government announced a major overhaul of labour laws in recent decades on Friday, November 21, by consolidating 29 laws into four codes. For both employers and employees, these codes aim to promote clarity and simplification, thereby protecting their rights and facilitating ease of business.

Whether you're a fixed-term employee, contract worker, IT employee or woman worker, there's something for everyone. Here's what to expect from the recently introduced four labour codes.

What's in for Fixed-Term Employees (FTE)?

• FTEs will receive all benefits equal to those of permanent workers, such as leave, medical coverage, and social security.
• Employees will become eligible for gratuity after only one year, rather than the previously required five years.
• FTEs will be offered equal wages as permanent staff, hence increasing income and protection.

What will gig and platform workers get?

• Gig work, platform work and aggregators have been formally defined for the first time under the new labour codes
• Aggregators are required to contribute 1–2% of their annual turnover, with a maximum of 5% of the amount paid or payable to gig and platform workers.
• The Aadhaar-linked Universal Account Number will aim to facilitate easy access to welfare benefits, ensure full portability, and enable availability across different states, regardless of migration.

What should contract workers expect?

• Fixed-term employees (FTE) will boost employability and secure social protections, including benefits comparable to those of permanent staff.
• Employees will become eligible for gratuity after completing one year of continuous service.
• The main employer will offer health benefits and social security to contract workers.
• These workers will get free annual health check-ups.

What are the provisions for women workers?

• The code legally prohibits gender discrimination.
• Equal pay for equal work has been promised.
• Women are permitted to work night shifts and in all types of jobs, including underground mining and heavy machinery, provided they give consent and safety measures are in place.
• It is mandatory to ensure women representation in grievance redressal committees.
• The code consists of a provision to include parents-in-law in the family definition for female employees to expand dependent coverage.

What should youth workers expect?

• All workers are assured a minimum wage.
• Appointment letters have been promised to all, with the aim to promote social security and accountability.
• Worker exploitation by employers has been banned, while wages during leave have become mandatory.
• To ensure a decent standard of living, workers will receive wages as per the floor wage determined by the Central government.

What provisions will MSME workers get?

• All workers in micro, small and medium enterprises (MSMEs) covered by the Social Security Code, 2020, qualify depending on their employee count.
• Minimum wage has been guaranteed for all workers.
• Workers will have access to facilities including canteens, drinking water, and rest areas.
• Provisions for standard working hours, double overtime wages, paid leave and timely wage payment.

What will plantation workers get?

• Plantation workers are now covered by the OSHWC Code and the Social Security Code.
• Labour codes are applicable to plantations that have over 10 workers or cover at least 5 hectares.
• Safety training has become mandatory for handling, storing, and using chemicals.
• Protective gear is compulsory to avoid accidents and contact with chemicals.
• Workers and their families will receive total ESI medical facilities, and education facilities for their children are also assured.

What are the benefits for audio-visual and digital media workers?

• Digital and audiovisual workers, such as journalists in electronic media, dubbing artists, and stunt performers, will now be eligible for full benefits.
• An appointment letter must be provided to all workers, clearly indicating their designation, wages, and social security entitlements.
• Wages must be paid on time, while overtime work beyond prescribed hours, to be consent-based and pay at least double the normal wage rate.

What will mine workers get?

• The Social Security Code considers some commuting accidents as related to employment, depending on specific timing and workplace location conditions.
• The Central government issued standards to standardise workplace safety and health conditions.
• While ensuring safety for all workers, the code guarantees an annual health check-up, which will be offered free of charge.
• A limit of 8 to 12 hours per day and 48 hours per week is set to ensure a healthy work-life balance.

What should workers in the hazardous industry expect?

• The Central government will establish national standards to improve worker safety.
• Women are permitted to work in all types of establishments, including underground mining, operating heavy machinery, and hazardous jobs, promoting equal employment opportunities for everyone.
• A mandatory safety committee at each site will be ensured for on-site safety monitoring and safe handling of hazardous chemicals.

What IT and ITES workers must know?

• Salary must be released by the 7th of each month.
• Equal pay for equal work is made mandatory, with the aim to boost women’s participation.
• Prompt resolution of harassment, discrimination, and wage disputes.

What will dock workers get?

• All dock workers to receive formal recognition and legal protection.
• Provident fund, pension, and insurance benefits will be provided to all workers, whether contract or temporary dock workers.
• Annual health check-ups funded by the employer are mandatory.
• Dock workers will have access to mandatory medical facilities, first aid stations, and sanitary and washing areas to ensure proper working conditions safety.

What's in store for export sector workers?

• Export sector fixed-term workers will be entitled to receive gratuity, provident fund (PF), and other social security benefits.
• Every employee should have the option to take annual leave after completing 180 days of work within a year.