In an effort to modernize the antiquated regulations that have governed companies and workers for decades, the Center on Friday announced the implementation of new labor codes by combining 29 labor laws into four comprehensive labor codes.
In order to streamline and improve the framework governing workers' rights, the Center combined 29 labor laws into four comprehensive labor codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020, according to a PIB release.
According to the Center, the historic reform promotes "ease of doing business" and protects the rights and welfare of workers by streamlining compliance, modernizing outmoded regulations, and creating a simplified, effective framework.

Key highlights from 4 labour codes

Gratuity eligibility

Fixed-term employees will now be eligible for gratuity after one year of continuous service, as compared to earlier criteria of five years.

Additionally, 50 per cent of the total remuneration (or such percentage as may be notified) shall be added back to compute wages, ensuring consistency in calculating gratuity, pension, and social security benefits.Changes to working hours and overtime pay
Companies are allowed to hire employees for 8–12 hours per day, but no more than 48 hours per week. At the moment, shifts can only last nine hours. The regular wage rate will be doubled for overtime.
Now, contractors can operate anywhere in the nation with a single, five-year license.
Updated guidelines for layoffs
Code 2, The Industrial Relations Code, 2020, which streamlines regulations pertaining to trade unions and working conditions in industrial establishments, mentions this specific rule.
"Higher Layoff/Retrenchment/Closure Threshold: States may boost the approval limit from 100 to 300 personnel. According to the PIB publication on the labor codes, "the provision will simplify compliance and contribute to formalization."According to a Reuters story that deciphered the new regulations, companies with up to 299 employees can now fire employees without government clearance because the threshold has increased from 100 to 300 under new labor guidelines.
In the past, employment conditions approved by the government were required for businesses with 100 or more workers.
Advantages for platform and gig workers
For the first time, gig and platform work are defined by the labor regulations, extending social security to previously unregulated sectors. A fund for unorganized, gig, and platform workers is guaranteed by the labor legislation. The government will use the money from the compounding of offenses to provide gig workers with life, disability, health, and old-age benefits.Provision for working from home
The labor regulations provide for work-from-home options in service industries with mutual permission in order to increase workplace flexibility. During the COVID-19 epidemic, work-from-home arrangements became essential, and many businesses today provide remote or hybrid work arrangements that combine office and home work.
Minimum pay for both the organized and unorganized sectors
All workers, including in the organized and unorganized sectors, will be entitled to government-set minimum salaries under the new code.
With room for regional variation, the government will establish a statutory floor wage based on minimal living requirements. According to the government's announcement, "no state can set minimum wages below this level, ensuring uniformity and adequacy nationwide."Furthermore, the government has implemented measures for prompt payment and the avoidance of unapproved deductions, regardless of the monthly salary.
Additionally, basic salary, dearness allowance, and retaining allowance are now included in the updated definition of wages. Inclusion of gender
Women can now work night shifts with safety precautions thanks to equal pay for equal labor, which eliminates previous state limitations on night work in specific industries.
All female employees in unorganized industries are eligible for maternity benefits under the regulations, which include 26 weeks of paid leave.
Social Security
All workers, including unorganized, gig, and platform workers, are required to receive social security payments under the Code on Social Security 2020. Life, health, maternity, and provident fund benefits will all be covered.

Advantages for migrant employees

• Inter-state migrant workers (ISMW) are defined by the new labor rules as workers who are hired directly, through contractors, or migrate independently.                  Establishments are required to disclose the number of migrant workers.
•   Benefits include the portability of the public distribution system and a lump sum annual travel stipend to one's home country once every 12 months.
• advantages from social security in each state.
• availability of a toll-free helpline.