Labour Code 2020: 8 hours of work per workday

The Wage Code stipulates that overtime wages should be at least double of the regular pay

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The Government will soon specify the exact working hours in the new labour laws. The Code on Wages was passed in 2019, which mandates the minimum and timely payment of wages to the workers.

The Wage Code stipulates overtime working to most likely begin beyond eight hours with the overtime wages being at least double of the regular pay. This move would put an end to the dispute that normal working hours may be pushed to 12 hours per day. This would have been higher than the 9 hours allowed by the Code on Occupational Safety, Health and Working Conditions.

The 2019 code had been passed on August 2019 and is likely to be implemented with effect from April 1, 2021. Under this code four laws pertaining to wages and bonuses are covered, namely, Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and Equal Remuneration Act, 1976.

The concept of floor wages, and also the provisions for minimum and timely payment of wages to workers is covered under this code. Upon implementation, the minimum wages have to be at par with the floor wages as will be determined by the Central government.

The labour code applies to both the organised and unorganised sectors and to all organisations irrespective of their size. This new labour code will simplify and separate out the present overlapping labour laws.

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