Know all the salient features of the new labor laws in India

For any industry, the labor force is one of the essential needs for its smooth operation to make profits. It is the reason from the Indian Slavery Act 1843, the Minimum Wages Act 1948, was enacted after independence. Since then, the Indian Government enacted many labor laws to protect the employees though caused hardships for the businesses. In 2020 29 central labor laws and their corresponding state laws were subsumed into four labor codes. The Indian Government expects to simplify, restructure, and modernize to increase the ease of doing business in India. Only the best patent agent in India enable businesses to start in India to comply with all the four labor codes as per the requirement and regulations.

So, check out the salient features of the four labor codes that brought the biggest change in the labor laws of India to lure foreign companies to start a business in India.

What are the four labor codes brought by the Indian Government in 2020?

Many companies in India and abroad wanting to start their business in India were wary of the labor laws of the central and state governments. Also, the laws changing over time will make them uncomfortable to comply with the new regulations to face penalties and other issues. Hence the Indian Government in 2020 brought all the existing labor laws under four labor codes to be effective from 2021. It will surely boost the businesses locally and allow foreigners to start their businesses anywhere in India without any labor law worries. The following are the details of the four labor codes that subsumed 29 central labor law and their corresponding state laws.

1. Wage Code or The code of wages 2019 covers the various wages payable to the employees by combining the four labor laws. They pertain to the minimum payment wages, statutory bonuses, deductions, and equal payments for all employees. The Uniform definition of wages is the significant aspect of the wage code that all three other labor codes adopt and apply to all establishments.

2. IRC or the Industrial Regulations Code 2020 amalgamates three labor laws that primarily deal with employee conditions, employees’ separation from employment, collective bargain, and industrial disputes. IRC is one of the most contentious of the four labor codes as employees believe that many of their rights are curtailed, including striking rights without due notice. But the Government claims that many industries can now expand their operations, and IRC is less demanding than the previous labor laws.

3. SS code of The Code on Social Security subsumes nine laws that were primarily for employee welfare. But SS seeks to create an employee security system to offer retirement, disability, old age, maternity, and unemployment benefits. And all of it will cover the unorganized sector which has the most number of workers in India.

4. OSHWC code or occupational safety health and working conditions code 2020 repeals the maximum number of laws counting 13. The repealed laws were applicable for various industries dealing and codifying in a single regulatory framework. The new legal provision will apply for plantations, mines, factories, construction establishments, and contract laborers.

Only the best patent agent in India will be well versed with so many changes in the labor laws of India to start a business or run it complying with all its regulations.