The activation of four new labor laws in the country might lead to changes in employee holiday regulations.
Under these laws, no worker can take paid leave exceeding 30 days in a calendar year.
If an employee’s leave surpasses this limit, the company or employer must compensate for the additional days off.
However, it’s important to note that these laws have not yet been put into effect nationwide.
Impending Changes in Labor Legislation
In India, there exist 29 Central Labor Laws, categorized into four codes, which cover areas such as wages, social security, industrial relations, occupational safety and health, and working conditions.
While these four labor codes have been approved by Parliament, their implementation depends on individual state governments notifying and adopting the codes.
This implementation extends to employees in managerial and supervisory roles as well.
When Will the New Labor Laws Apply?
Employees in India have long been advocating for the enforcement of labor code regulations.
If these rules come into play, employees could enjoy three days of leave per week instead of the current two days.
However, it’s worth noting that the likelihood of these labor code rules being enforced appears slim, especially considering the upcoming general elections next year.
The implementation of these rules may not occur until after the elections, with the primary aim of safeguarding employee interests.
Key Provisions of the Labor Code
According to a report from ET, Section 32 of the Occupational Safety, Health, and Working Conditions Code of 2020 (OSH Code) lays out specific conditions related to annual leave, carryover, and encashment.
Under Section 32(vii), employees can carry forward unused annual leave, but the maximum limit is set at 30 days, and any excess leave at the end of the calendar year can be carried over to the next year.
