The Indian government is gearing up to introduce new labour codes, expected to come into effect from July 1, that propose significant changes to daily and weekly working hours.
Under these new codes, employers will have the flexibility to cap daily working hours between 8 to 12, while maintaining a weekly work hour limit of 48.
Embracing the 4-Day Work Week
One of the key highlights of the proposed labour codes is the potential for employers to explore a 4-day work week option. However, there’s a catch – the daily working hours, which currently stand at 8, can be extended to a maximum of 12.
This means that employees who opt for a shorter work week will have to compensate by working longer hours on the days they are required to be at work.
The new labour codes aim to provide businesses with more flexibility, but there are concerns about the implications of extended daily working hours.
While a 4-day work week may offer employees longer rest periods and improved work-life balance, the trade-off could be longer working hours during weekdays,
potentially impacting workers’ health and well-being.
Shift in Overtime Regulations
Another significant change in the proposed labour codes is the increase in overtime hours allowed across industries. While the current limit stands at 50 hours (under the Factories Act), the new codes could raise this limit to 125 hours per quarter.
This revision could give companies more leeway to employ a 4-day work week while utilizing weekend working hours if necessary.
However, it also raises concerns about the impact of prolonged working hours on employees, as they may need to work on weekends or face longer working days during the week.
Challenges and Delays in Implementation
Despite speculations surrounding the July implementation, worker unions reveal that the government has missed several deadlines for introducing the new labour codes. As labour falls under the concurrent list of the Constitution, both the central and state governments must collaborate to establish rules for the implementation of these central legislations.
The delayed implementation has led to uncertainty and varying reactions from industry experts and workers alike.
The proposed changes have faced opposition from trade unions since their inception, resulting in multiple demonstrations and general strikes in protest.
Ensuring Timely Salary Payments
In addition to revamping working hours, the new labour codes include provisions for payment of wages to employees exiting an organization.
The Codes mandate that wages should be paid within two working days of an employee’s removal, dismissal, retrenchment, or resignation.
This timeline will be universal, covering all employees without any salary limit specification. Moreover, the codes introduce provisions related to deductions from salaries.
Employers must ensure that deductions align with permissible categories, such as contributions to Provident Fund and tax deduction at source (TDS).
The new labour codes restrict the total deduction in any given month to not exceed 50% of the wages.
As the implementation of the new labour codes continues to face delays and challenges, the proposed changes could significantly impact the working landscape in India.
The potential adoption of a 4-day work week and the increase in overtime hours raise important considerations about work-life balance, employee well-being, and productivity.
