How new labor codes will benefit IT and gig workers
What's the story
The Indian government has announced a major overhaul of its labor laws, merging 29 existing regulations into four new codes. The move is aimed at improving wages, overtime, social security benefits, and more. The new codes will offer sector-wise benefits to all workers in India. Here's a look at how the changes will impact different sectors.
Gig economy
Gig and platform workers to benefit from new codes
The new labor codes will provide legal recognition to gig and platform workers for the first time. They will also get benefits such as aggregator welfare fund contribution, accident compensation, and Aadhaar-linked portable benefits. This is a major step toward protecting the rights of workers in the unorganized sector who have been at the mercy of their employers.
Equal rights
Contractual workers and women to get equal benefits
The new codes also guarantee equal benefits and gratuity eligibility for fixed-term employees after one year. The principal employer will be responsible for health and social security of these workers. Women employees will benefit from a legal ban on gender discrimination, equal pay, maternity leave of 26 weeks, creche facilities, work-from-home flexibility as well as medical bonuses worth ₹3,500.
Wage security
Youth and MSME workers guaranteed minimum wage
The new labor codes guarantee a minimum wage for youth workers, mandatory appointment letters, and wage payment during leave. The wages will be as per the central floor wage. For MSME workers, social security coverage is extended with a minimum wage guarantee, access to facilities, standard hours of work, double overtime wages, and timely payment of wages.
Wage assurance
Beedi, cigar, and plantation workers assured minimum wage
Beedi and cigar workers will get a guaranteed minimum wage, capped working hours, consent-based double overtime pay, timely wages as well as bonus eligibility after 30 days/year. Plantation workers will be covered under OSHWC and Social Security Codes with safety training, protective equipment provision as well as ESI/education benefits for their families.
Worker protection
Audio-visual and mines workers to get full benefits
The new labor codes also extend full benefits to media/digital workers in the audio-visual sector. They will get mandatory timely wages and appointment letters as well as double overtime pay with consent. Mines workers will be provided accident compensation, standardized safety conditions, health protections including free check-ups as well as regulated working hours (8-12 hours/day).
Health safety
Workers in hazardous conditions to get annual health check-ups
Workers in hazardous conditions will get free annual health check-ups, national safety standards, gender non-discrimination in jobs as well as mandatory safety committees and chemical handling rules. Textile workers will be assured equal wages and welfare benefits for all migrant workers with claims up to three years and double wages for overtime.
Sector-specific benefits
IT sector workers to get fixed-term benefits
The new labor codes also extend benefits to workers in the IT sector. They will get salary release by the 7th of each month, equal pay, night shifts for women employees as well as harassment dispute resolution. Fixed-term and social security benefits are also part of these changes. Dock workers will be formally recognized with mandatory appointment letters and PF/pension/insurance benefits among other things.