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New labour codes from July 1: Full-and-final payment to be credited within 2 days

From July 1, new labour codes can be implemented across the country which can impact your inhand salary, weekly offs and daily hours of work. The Centre has finalised these four codes. Now it is up to the states to implement them. These codes are related to wages, social security, industrial relations and occupational safety. Here are the salient points of the New Labour Codes 2022. 

Under the new labour codes, employees would be allowed to get three week-offs. Any employee would have to work for not more than 48 hours. This means those employees who work for 8 hours every day will get only one week off. However those who work for 12 hours every day will be entitled to three week-offs. Those who work 9 hours per day will get 2 week-offs. The new labour codes will also change the full-and-final rules. Those who decide to leave the country would have to be paid the final settlement amount within 2 days of exiting the company. 

The maternity leaves for female employees will increase to 26 weeks. No company can place them on the night shift without their consent. Proper facilities and security will have to be ensured. 

The salary structure of all employees will be changed. The basic salary component will be increased. Since the provident fund is calculated on the basis of basic salary, it will be increased. This means the provident fund of employees will increase but the inhand salary will be decreased. 

If this code is implemented, the labour force will be entitled to leaves after every 180 days against 240 days earlier. 

In India, normally, the full-and-final payment is credited after 45 days of existing the company. 


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