HR Compliance Updates For Indian Labour Codes

As a third-world country, India is upgrading their labor laws frequently. Hence, various businesses and organizations have to evolve with the pace. Any organization has to know about the four laws so that it can stay competitive without being in trouble. Teaming up with a reliable recruitment agency in Bangalore can help. It ensures that hiring practices are ethical as well. In this blog, we will discuss about the key changes in the new labour codes. We will also discuss how they can make an impact on the hiring practices efficiently. 

Overview of the Four Labour Codes 

Recently, the government of India has merged its 29 existing labour laws into four major codes. 

·         Code on Wages,2019

·         Industrial Relations Code, 2020

·         Occupational Safety Code,2020

·         Social Security Code, 2020 

These codes were introduced to increase clarity and to ensure uniformity across the states. The impact areas include employee benefits, contract labor, and making the workplace safe. Companies that offer recruitment services in Hyderabad must ensure that both the HR and recruitment agencies are concerned about those regulatory changes.

·         Impact on Compensation and Wages 

This term usually highlights the salary structures. Basic wages must constitute a minimum of 50% of the total compensation. It directly affects the HRA, bonuses, and provident fund contributions.  

According to these changes, companies may need to revisit the offer letter to the employees. They also have to take care of the salary breakdowns and employment contracts.

·         Industrial Relations Code 

It comes up with four major changes that affect trade unions. They also address the disputes and layoffs. It also offers fixed-term employment to hire workers for specific durations,

Giving more benefits to the permanent employees. This rule also focuses on lockout issues, with stricter notice periods.

·         Occupational Safety Code, 2020 

This code merges 13 labour laws so that it can make a safe and healthy workplace in India. It also mandates working hours, hygiene, safety, and welfare for the employees. This code covers contract labourers and migrant workers, and provides them with safety and protective gear. This code improves employees ' well-being by simplifying the processes for different sectors and states.

·         Social Security Code, 2020 

It merges with the existing nine laws, so that it can extend social security to all employees. It provides benefits like PF, ESI, GRATUITY, as well as Maternity leaves to the workers. It also enables an Aadhaar-based registration process and makes the employees eligible for gratuity. A reliable recruitment agency in Bangalore can help various businesses with these requirements. It focuses on building a more inclusive and secure workplace across the sectors by expanding security.

Conclusion 

These Indian labour codes come up with the much-needed reforms. Also, it raises the bar for HR compliance, from structuring basic wage structures to ensuring protective gear for the employees. Are you looking for a compatible, future-ready hiring support? Connect with Cube Consulting to move forward these changes with confidence.