July 1: How will the new labor laws affect wages, the working day and pensions?

Under the new provisions, half of the total salary of employees, i.e. 50 per cent will be the basic pay. Therefore, it will increase the amount allocated to the Employee Pension Fund. Union leaders say that as a result, workers working in the private sector will be paid less wages each month.

At the same time, the government says that more money will be deposited in the pension and gratuity fund and after retirement it will help people with a quality life.

Speaking to the BBC, tax expert Gauri Chadha says: “If 50 per cent of your total salary is a basic salary and 50 per cent are subsidies, the changes will not affect you.”

It has also been said in these provisions that the salary of salaried women and men will be equal. Sindhu, national secretary of the CITU employee organization, told the BBC that these changes would only benefit the government and employers, not employees.

With the entry into force of the new provisions, the working hours of workers will change. Currently, employees at most places have to work between eight and nine hours. According to Narsing Rao, chairman of the Andhra Pradesh labor unit of the labor organization CITU, the working day can be increased to 12 hours in accordance with the new provisions.

Hyderabad-based financial analyst K. Nagendra Sai said: “It is important for people to understand that there is no change in weekly working hours. Even under the new provisions, work should not be done. exceed 48 hours per week.

If employers impose duties for 12 hours a day, they will have to give employees three vacations in a week. These 48 hours can be completed in as little as four days, in five days, and even in six days. But it will certainly affect people’s personal lives in working life and may not even be of any benefit.

Article 25.1 of the Labor Law deals with the safety, health and working conditions of workers, under which it has been said that no worker may be required to work more than eight hours a day. But under section 25 (1) (b), it has been said that the employer can make his employee work 12 hours a day.

Similarly, section 26 (1) states that employees may not be required to work more than six days a week. But in Article 26 (2), the government has the right to relax these provisions.

Under the new labor laws, if the employee does not have weekly leave, on the other hand, it can be granted within two months.

Under the above provisions, employees could work overtime up to 50 hours per quarter. Under the new provisions, employees could work overtime of up to 125 hours in three months.

Union leaders say there is no clear provision in the new laws regarding overtime.

However, employers or managers have every right to work overtime for their employees. Labor leader Narsing Rao says nothing has been said about overtime pay under the new provisions.

Now, employees will have to work 180 days to enjoy the annual vacation, compared to the 240 days previously planned. However, there has been no increase in the number of vacations for employees.

Women have the right to work in all sectors. Workers can also take night shifts at will, but for this the employer will have to take the necessary measures for the safety provisions and facilities.

Most organizations in India contribute 12 per cent of basic salary to their employees ’pension fund. Under the new provisions, the basic pay will increase.

Financial analyst K. Nagendra Sai said: “If the basic salary is 50 per cent of the total salary, the share of employees and the employer will increase in the pension fund. This will place an additional burden on employers. , employees will receive benefits after retirement. More amount deposited in the pension fund. ” Therefore, more money will be deposited in the government. “

Under the new provisions, the amount of the bonus will also be higher and will be calculated in accordance with the new provisions. The minimum service condition for free has also been removed.

It is also planned to transfer it to designated employees for a specified duration. These employees will have all the facilities as regular employees.

Workers working in the organized and unorganized sector will receive free treatment at hospitals and clinics of the State Employees Insurance Corporation. The branches of these hospitals are present at the district level. There will be a universal account number for ESI and PF that will link to Aadhaar.

Fixed-term jobs are legal according to section 2 of the Labor Relations Provisions. Employers may keep the employee for a stipulated time and once the time has ended, the employee may be dismissed from the job without prior notice or compensation. They will receive gratification even if they work for a year.

Sindhu, CITU’s national secretary, said: “But if companies sign an 11-month contract, the bonus will not be available. Employers will take advantage of it.”

All employees must register on the national portal. With this, they will be able to benefit from the social security schemes implemented at national level.

If the employee works in another state, the new rules provide for a travel benefit once a year to go to their hometown. A provision has also been added to give letter of appointment to all employees with regard to employment.

to work from home approval

It has also been agreed to allow employees to work from home in accordance with the new provisions. This has been incorporated taking into account the experience that employers around the world have made it possible to work from home to improve the health of employees during the transition to COVID. However, for this the employer will have to follow some basic principles.