Labour Code 2020: Even managers may get overtime pay

As per the new Code on Wages, the compensation for overtime will be at least two times the regular pay

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If implemented properly, the Code on Wages 2019 may allow all employees, including the managers to claim overtime pay. Also, this payment for overtime will be at least two times that of the regular pay! This surely is good news for all the labour unions that feel the new Code is not in favour of workers.

Once the new Code is sorted out, even white-collar employees will become eligible for overtime pay, which was not the case until now. This will of course increase the financial burden of the companies. They will also have to devise effective ways of monitoring overtime and see to it that employees limit their overtime to a decided number of hours daily, weekly, monthly or quarterly, in keeping with the Code.

The labour codes are expected to simplify the current labour laws that appear quite complicated and overlapping in many cases. The new Code will streamline the laws pertaining to industrial disputes and trade unions too. It will replace the current Trade Union Act 1962, Industrial Employment (Standing Orders) Act, 1946 as well as The Industrial Disputes Act of 1947.

As per the Code, companies with up to 300 workers will not need to seek the Government’s permission to fire employees or to shut down a plant or factory.

Not surprisingly, the Code has been welcomed by businesses and employers, but not by labour unions. While employers feel the Code will give a boost to employment and do good to the business environment, labour unions feel it is not in favour of the workers.

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