Four labor codes are less likely to use the money given the slow progress in drafting laws by provinces and for political reasons such as elections in Uttar Pradesh, the source said.
The implementation of these laws is important because if these laws are implemented the wage returns of workers and firms must be reduced and they must bear a huge provident fund debt.
“The Department of Labor is prepared with rules under the four labor codes. But the provinces have been slow in drafting and finalizing those under the new codes. Otherwise, the government is unwilling to use these four codes for political reasons, especially in the Uttar Pradesh elections (scheduled for February 2022 onwards),” he said. said the source.
Four codes have been passed by Parliament. However, in the application of these codes, the laws under this must be communicated to the central government and the state by enforcing those in certain positions.
“It is possible that the use of four employee codes may be deducted beyond this financial year,” the source said.
Once the wage code comes into effect, there will be major changes in the way it includes basic income and provident fund for employees.
The Department of Labor thought it would apply four codes on industrial relations, wages, social security and occupational health and working conditions from April 1, 2021. These four labor regulations would measure 44 labor laws.
The department had even finalized the rules under four codes. But this could not be used because many countries were not in a position to introduce laws under these codes in their territories.
Labor is the same issue at the same time under the Constitution of India so both Institutions and Provinces must introduce laws under these four principles to make them national laws in their areas.
According to a source, some states have implemented laws that are still being drafted in four code of practice. These provinces are Uttar Pradesh, Bihar, Madhya Pradesh, Haryana, Odisha, Punjab, Gujarat, Karnataka and Uttarakhand.
Under the new wage code, grants are set at 50 percent. This means that half the total salary of an employee can be a basic salary. Provident Fund contribution is calculated as a percentage of basic income, including basic income and grants-in-aid.
Employers have been dividing wages into multiple subsidies to keep basic wages low to reduce provident fund and tax payments. The new wage code provides provident fund contributions as a fixed portion of 50 percent of total income.
After the introduction of the new codes, workers’ compensation for home travel will decrease while the provident fund for employers will increase in most cases.
Once implemented, employers will need to restructure their employees’ salaries as a new salary code.
In addition, the new industrial relations code will also improve business facilitation by allowing firms with up to 300 employees to continue retrenchment, retrenchment and closure without government approval.
Currently all firms with up to 100 employees are exempted from government permits for retrenchment, retrenchment and closure.