Govt notifies draft rules for labour codes, seeks feedback in 45 days

The government had notified all four labour codes in November this year after being cleared by Parliament five years ago. Earlier in 2020 and 2021, draft rules were floated for public comments but not notified.

After weekly working hours of 48 hours come with a provision to separately notify daily working hours, intervals and spread over time. “No worker shall be required or allowed to work in an establishment for more than 48 hours in any week. The period of work in each day… with intervals and spread overs, shall be as notified by the Central Government,” the rules said.

In the November 2020 version of the draft rules of OSH Code, the government had specified a spread-over time of 12 hours, increasing it from 10.5 hours in an earlier version.

While there is a weekly limit of 48 hours for working hours, the details for intervals, spread-over, and rest day, are awaited by many workplaces seeking flexible working hours for employees. These may be critical in certain sectors which follow a hybrid work model, allowing work-from-home.

The rules also require Aadhaar-linked registration of every unorganised worker aged above 16 years, and a National Social Security Board for gig and platform workers. The members to the board are from Lok Sabha, Rajya Sabha, unorganised sector workers’ and employers’ associations, states, and representatives from scheduled castes, scheduled tribes, women and minorities have been detailed in the draft rules.

Under the draft rules for the OSH Code, the government has allowed for electronic application for single licence for contractors working in more than one state or for the whole country. The approval or disapproval has to be granted within 45 days.

For women workers, who have been allowed to work in the night shift under the OSH Code beyond 7 PM and before 6 AM, the consent of the female employee has to be taken by the employers in writing, the rules said. Also, adequate transportation facilities have to be provided for pick-up and drop for such women employees at her residence in addition to safe and well-lit workspace.

The Ministry also clarified the definition of wages under the labour codes. It said wages cover all remuneration — salaries, allowances or any other payment to a person employed. If the payments or allowances, other than basic pay, dearness allowance and retaining allowance, exceed 50 per cent of all remuneration, then the amount over 50 per cent will be added to ‘wages’.

Performance-based incentives, employee stock option plans (ESOPs), variable or reimbursement-based payments to the employee will not be part of the wages, it said. Leave encashment will not be part of allowances, it added.

On the clarification sought by industry regarding calculation of gratuity, the Ministry said gratuity will be applicable prospectively with effect from November 21, 2025, that is, the date of enforcement of the labour codes. The labour codes have introduced the concept of fixed-term employment, which allows the employment of workers for defined time periods based on demand and seasonality of the industry. Fixed-term employees, appointed for shorter terms, will be eligible for gratuity after 1 year of continuous service. Earlier, it was limited to permanent workers after 5 years of service.

As per the draft rules, the minimum rate of wages will be fixed on a per day basis taking into account a standard four-member family and a net intake of 2,700 calories per day per member, and factoring in: house rent, fuel spend, children education, medical expenses. A technical committee will be set up by the government to fix the minimum wages.