The government is preparing to implement the new labor code from July 1. With its implementation, many things will change for the employed people. For example, with the new law’s implementation, retirement benefits like PF and gratuity will increase.
Apart from this, the weekly holidays can also increase from two to three. After implementing this code, the full money will be received from any company within two days of leaving the job. It takes 30 to 60 days (an average of 45 days) for full and final payment.
Complete and Final Within Two Days
According to the news, it has been said about the full and final settlement that the payment of the employees should be paid within two days of leaving the job, dismissal, reduction, and resignation from the company. Currently, most of the rules apply to the payment and settlement of new wage code. However, this does not include resignation. In addition, in the new labor code, In-Hand Salary, i.e., Take Home Salary, will be reduced, and working hours will increase.
Four Changes at Once
The new labor codes relate to new wage code, Social Security, Industrial Relations, and Occupational Safety. The central government prepared the final draft of these four codes in February 2021. So far, 23 states have adopted pre-published drafts of these laws. However, the central government wants all the states to implement these four changes simultaneously.
Working Hours Will Increase
Another important change in the new labor code is regarding working hours. Accordingly, the government has proposed four days of work and three weekly holidays. It has also been said to increase the working hours every day. If the new labor code is implemented, you will have to work 12 hours every day. Therefore, the government proposes that an employee will have to work at least 48 hours a week.
Apart from this, the contribution of the employee in PF will increase. Because according to the new proposal, half of the basic salary will be deducted as PF. Due to this, the take-home salary will be reduced. But at the time of retirement, the employee will get a big amount, which will greatly support old age. So this will be beneficial, especially for the people working in the private sector.