Equal pay, faster salaries, night-shift flexibility: What new labour codes mean for IT/ITES workers

(File photo)

The Centre on Friday implemented four new labour codes, marking the biggest overhaul of workers’ laws in decades. The government says the move aims to simplify rules and improve worker protection.

With this, the Centre has unified 29 central labour laws under a consolidated framework. The four codes are 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.

With the rejig, one of India’s largest employment-generating sectors, the IT and ITES industry, now faces a major overhaul of employment norms under the new codes.

A key feature of the reforms is that fixed-term employees must now receive the same benefits as permanent staff, including provident fund, ESIC, insurance, and other social security entitlements, for the duration of their contract.

• Release of Salary mandatory by the 7th of every month. Transparency and trust ensured.
• Equal pay for equal work made mandatory, women’s participation is strengthened. Facility for women to work night shifts in all establishments – women to get opportunity to earn higher wages.
• Timely resolution of harassment, discrimination, and wage related disputes.
• Guarantee of social security benefits through fixed-term employment and mandatory appointment letters.

“With the new codes, fixed-term employees must now receive the same benefits as permanent employees for the duration of their contract. Rules around working hours and overtime also become more uniform, which is important in an industry where extended workdays, weekend work and high-pressure project cycles are common,” said Harpreet Singh Saluja, President of the IT and ITES sector workers’ union, Nascent Information Technology Employees Senate (NITES), according to a report by Mint.