Replacing 29 old laws with 4 modern Codes.

India’s New Labour Codes are now officially live
replacing 29 old laws with 4 modern Codes.

Here’s the complete breakdown of what changes:

🔹 New Rule for “Wages”
Basic + DA must be ~50% of total pay.
Example: CTC ₹40,000 → Basic at least ₹20,000.

Impact:
PF, Gratuity, Bonus, and Leave Encashment will increase.
Take-home salary may be reduced slightly; no more inflated allowances.

🔹 Mandatory Appointment Letters for ALL Workers
Every worker (office, factory, housekeeping, driver, technician)
must get an appointment letter.

🔹 Minimum Wages Now Apply to EVERYONE
Earlier only “scheduled jobs” were covered.
Now: IT, Agencies, Retail, Startups, Factory, Services → ALL covered.

🔹 Working Hours + Overtime Simplified
• Weekly limit: 48 hours (Daily limit: 8–12 hours)
• Overtime = 2× pay (OT only with consent)
• Attendance + OT records must be digital

🔹 Leave Policy Standardisation
• Earned leave, sick leave must align with the new Codes
• Must apply uniformly across locations
• Leave encashment based on the new wage definition (higher)

🔹 Fixed-Term Employees Get Full Benefits
FTEs get ALL the benefits of permanent employees
Example: a 1-year contract designer now receives gratuity previously they didn’t.

🔹 Women in Night Shifts Allowed (With Conditions)
Companies must provide:
Written consent, Safe transport, Security measures, PoSH compliance, CCTV + safety checks,
No discrimination in roles or wages

🔹 Health, Safety & Mandatory Health Checkups
• Annual health checkups for workers above 40
• Safety committees for factories/warehouses
• Hazardous work rules strengthened

🔹 Hiring, Firing & Layoff Rules Change
• Threshold for government approval for layoffs/closure rises from 100 → 300 employees
• More flexibility for companies (BUT compensation rules are stricter & clearer)
• Standing Orders mandatory for 300+ staff (discipline, misconduct, exit procedures)

🔹 Contractor Compliance
• Principal Employer is liable.
• Companies MUST: Check PF/ESIC challans,
wages paid on time, and maintain worker records
Example: If the contractor fails PF → the company pays the penalty.

🔹 Gig & Platform Workers Are Now Recognised
Delivery partners, Cab drivers, App-based service professionals, Freelance digital platform workers to receive new social security benefits.

🔹 Digital Compliance is Now Mandatory
E-muster roll, E-wage register, E-attendance, E-inspections, Single unified return, PAN-India licence for contractors in certain sectors

🔹 Full & Final Settlement Must Use New Wage Formula
F&F calculations must use the 50% wage rule for:
Leave encashment, Gratuity, Notice pay

🔹 CTC Structures Must Be Rebuilt
Companies must redesign salary structures:
• Reduce arbitrary allowances
• Increase Basic
• Rework PF/ESIC calculations
• Update offer letters & promotion letters