New labour codes: What every work from home employee in India should know

Covid-19 pandemic changed the way world works. One of the major aspects of this was mainstreaming of work from home culture. While the world resumed the pre-pandemic ways after the crisis eased, professionals around the world continue to work from home in several sectors. In fact, due to the lower operational costs, several companies have positions for remote employees. It offers flexibility as well as inclusivity. However, there has always been a sense of ‘FOMO’ among the remote employees. Are they missing out on something? Can their boss terminate them without any consequence?

To address to such new-age dilemmas, the new labour codes announced last week provide much clarity. While there is a lot of talk around benefits for the gig workers, the remote employees also get a mention. In service sector, work from home can be done, provided there is a mutual agreement between the employee and the employer. Women going for maternity leave can also ask for work from home. This gives much needed flexibility to the staff without the fear of loss of job.

Another aspect is giving overtime compensation. In the hustle culture, there is an entire generation that has forgotten the work-life balance. To top it all, there is no monetary compensation for hours spent for the company over family time. The new labour codes have addressed this issue. The four codes state that the employer must provide overtime compensation to the staff if she/he is working beyond the mandated shift.

Here’s a look at key changes that every working professional in Indian needs to know: 

• Work From Home Provision: Remote work is allowed in service sectors by mutual consent, enhancing flexibility.


• Overtime at Double Wages: Employees working beyond normal hours must be paid at least twice their regular wage rate.


• Overtime must be voluntary and compensated at double the normal wage.


• The previous uniform cap of 75 hours per quarter for overtime is removed; states may set higher limits.


• This is beneficial for workers seeking extra income but could risk normalization of longer shifts—state notifications should be monitored.


• Free Annual Health Check-ups: Employers must provide free yearly health examinations or tests for employees aged 40 and above, promoting preventive care.


• ESIC Coverage Expanded: ESIC coverage is no longer limited to notified areas and can now extend nationwide, including plantations and smaller or hazardous units meeting certain thresholds.


• Commuting Accidents Covered: Accidents during travel between home and workplace are now considered employment-related and eligible for compensation.