4-day work-week instead of 5, change in salary: India's new labour codes likely in FY 2022-23

It is believed that less working hours brings more productivity and ensures a good healthy environment. In order to improve working conditions, India Parliament had given its nod to four new labour codes last year, but labour is a concurrent subject and so requires both the Centre and state governments to frame laws and rules. India is expected to implement its four new labour codes in FY 2022-23. Through these laws it is expected that employment and work culture might change - including working hours, in-hand salary, number of weekdays.

The working hours vary country to country, depending upon various factors like economy, social factors etc. However, it is seen that developing countries constitute slightly more working hours, in contrast to developed countries. It is believed that less working hours brings more productivity and ensures a good healthy environment. In order to improve working conditions, India Parliament had given its nod to four new labour codes last year, but labour is a concurrent subject and so requires both the Centre and state governments to frame laws and rules. India is expected to implement its four new labour codes in FY 2022-23. Through these laws it is expected that employment and work culture might change - including working hours, in-hand salary, number of weekdays. These rules are applicable to public sector undertakings. The new codes include minimum wage to workers, social security and will also provide greater flexibility to employers to hire and fire workers without seeking prior government permission. Now companies with less than 300 workers will be allowed to hire and fire workers. 

Key Points| 


1. The four new labour codes on wages, social security, industrial relations, and occupational safety are likely to be implemented in India by the next fiscal year 2022-23, as per the media reports. The laws, when implemented, might change- employment and work culture – including the in-hand salary of employees, working hours, and the number of weekdays.

2. The employees in India would be able to enjoy a four-day workweek from the coming year instead of five-day a week. However, a condition of 12 hours on those four days will be applied as the labour ministry has made it clear that even if the proposal comes through, the 48-hour weekly work requirement has to be met.

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3. The new labour codes proposed would bring a change in the in-hand salary of employees, once these are implemented with higher provident fund liability. According to experts, the contribution of employees to their PF account will increase but the monthly in-hand salary would get reduced.

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4. According to media reports, an official said, “The four labour codes are likely to be implemented in the next financial year of 2022-23 as a large number of states have finalised draft rules on these .The Centre has completed the process of finalising the draft rules on these codes in February 2021. But since labour is a concurrent subject, the Centre wants the states to implement these as well in one go.”

5. Till now at least 13 states have pre-published draft rules. The Union labour minister Bhupender Yadav, had said that the Occupational Safety, Health and Working Conditions Code is the only code on which 13 states have pre-published the draft rules

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