UNDERSTANDING LABOUR CODES IN INDIA (SIMPLIFIED)

India’s new Labour Codes bring all major labour laws together to make rules clearer, fairer, and easier to follow for both employers and employees.

Key Highlights:

• A single definition of wages now applies across all laws.
• Allowances exceeding 50% of salary will be added to wages for calculations.
• Minimum wages are now applicable to all employees, across all sectors.
• Workers are entitled to overtime pay (double rate) for extra hours.
• Gratuity is payable on resignation, retirement, or even fixed-term contracts.
• The Codes ensure equal treatment, including for women and transgender employees.
• Workers in both organized and unorganized sectors are covered.

These changes aim to improve transparency, strengthen social security, and protect workers’ rights while simplifying compliance for businesses.