Minimum Wage, Health Checkup, WFH And More: 12 Changes In Labour Rules Every Employee Must Know

New labour codes: The Union government has introduced a major overhaul of labour laws, merging 29 existing regulations into four new codes effective November 21. The four Labour Codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.

This reform is part of a broader effort to modernise India's labour framework, promoting ease of doing business and ensuring workers' rights are safeguarded. If you're employed full‑time, on contract, part‑time or even working via digital platforms, these changes could impact your earnings, job terms, benefits and rights. 

Here are some key changes every employee should know:

Expanded Minimum Wages: All employees, regardless of the employment sector (organised or unorganised) or wage ceiling, now have a statutory right to minimum wages, with a national "floor wage" to be set by the central government.

Revised Wage Definition and Take-Home Pay: A standardised definition of "wages" mandates that basic pay must constitute at least 50% of the total remuneration. This may reduce immediate take-home pay for some employees, but it will lead to higher contributions to social security benefits like Provident Fund (PF) and gratuity, thereby enhancing long-term retirement security.

Social Security for Gig Workers: For the first time, gig and platform workers are included in the ambit of social security, with aggregators required to contribute a percentage of their annual turnover to a dedicated fund for benefits like life and disability cover, and health benefits.

Faster Gratuity Eligibility: The eligibility period for gratuity for fixed-term employees has been reduced from five years of continuous service to just one year, promoting greater financial security. Notably, gratuity is a lump-sum financial payout employers make to workers as a gesture of appreciation for extended service. 

Mandatory Appointment Letters: Employers are now required to issue formal appointment letters to all new workers, including those in the unorganised sector, which provides documentary proof of employment, wages, and social security entitlements, enhancing transparency and job security. This applies even in informal or gig‑work settings where such formalities often didn't exist.

Overtime at Double Wages: Employees working beyond normal working hours must be compensated at a rate of at least twice their normal wage rate.

Increased Leave Entitlement: The eligibility period for annual paid leave has been lowered from 240 days of work to 180 days in a year, allowing newer employees to access leave benefits sooner.

Women Can Work Night Shifts: Gender‑based wage discrimination is explicitly prohibited. Women workers are now permitted to work in night shifts across all establishments (before 6 AM and beyond 7 PM), subject to their consent and mandatory safety and security measures provided by the employer.

Work From Home Provision: Remote work will be permitted in service sectors by mutual consent, improving flexibility.

Free Annual Health Check-ups: Employers must provide free annual health examinations or tests to all employees above the age of 40, promoting preventive healthcare in the workforce.

Timely Wage Payment: Employers are mandatorily required to pay wages within a specific time frame (e.g., within 7 days of the next month for monthly wages, within 2 working days of termination/resignation), ensuring financial stability for workers. 

Commuting Accidents Covered: Accidents during travel between home and workplace are now deemed employment-related, qualifying for compensation.