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India’s 4 New Labour Codes Explained: What HR Professionals Need to Know

Автор: Insights by Gaganpreet

Загружено: 2026-02-21

Просмотров: 8

Описание: The landscape of Indian Labour Law is undergoing its biggest transformation in decades. 29 central laws are being consolidated into 4 comprehensive codes. For HR leaders, this isn't just a legal update—it’s a fundamental shift in how we manage payroll, industrial relations, and employee benefits.

In this video, I break down the core pillars of the new framework to help you prepare your organization for the transition.

📌 What We Cover:

The 4 Codes: A high-level overview of Wages, Industrial Relations, Social Security, and OSH&WC.


The New Definition of "Wages": Why the 50% cap on allowances will change your CTC structures.


Expanding the "Worker" Definition: Including gig, platform, and fixed-term employees for the first time.


Operational Flexibility: The new 300-worker threshold for retrenchment and standing orders.


Social Security for All: How the gig economy is finally being brought into the safety net.

⚖️ The 4 Pillars at a Glance:

Code on Wages (2019): Focuses on universal minimum wages and timely payment for all employees.




Code on Industrial Relations (2020): Formalizes Fixed-Term Employment and updates strike notice rules.


Code on Social Security (2020): Consolidates PF, ESI, and Gratuity while adding coverage for freelancers.


Code on OSH&WC (2020): Streamlines safety standards and allows women to work night shifts with consent.

💡 Content Strategy: Key "Talking Points"
If you are filming this, use these specific insights to show your expertise:


The "50% Rule" Warning: Explain that if excluded items (like HRA or travel allowance) exceed 50% of total pay, the excess is treated as wages. This will likely increase the employer's contribution to PF and Gratuity.


Fixed-Term Employment (FTE): Highlight that FTEs now get the same benefits as permanent workers, but with a major advantage: they are eligible for Gratuity after just 1 year of service instead of 5.


Ease of Doing Business: Mention that the framework moves from multiple registrations to a single unified registration, significantly reducing the compliance burden for HR departments.


Implementation Status: Clarify that while the codes are enacted, the full national rollout is pending as states finalize their specific rules.

⚠️ Disclaimer
This video is for educational and informational purposes only. The content provided is intended to help viewers understand the broad framework of the New Labour Codes. As of now, while the Codes have been enacted by Parliament, full national implementation is pending as various states frame and notify their specific rules.

Provisions are subject to change based on final government notifications. This video does not constitute legal advice. Please consult with a legal expert or refer to the official Gazette notifications for specific compliance and organizational implementation.

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India’s 4 New Labour Codes Explained: What HR Professionals Need to Know

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