The government had late last year notified the Industrial Relations Code, the Social Security Code, and the OSH & WC Code. It had earlier notified the Code on Wages in 2019. These four codes will significantly impact the workers and the employers as it aims to improve the ease of doing business and provide universal social security to all 500 million workforces of India.
The rules under new labor codes will have an impact on employees' cost to the company (CTC) as well as employers' wage bills. Employers will have to modify the employee compensations once the extensive labor reforms come into play to accommodate the new definition of wages. Expected changes for employees include higher post-retirement benefits, while a decline in take-home salaries. Employers are likely to see increased outgo towards provident fund (PF) and gratuity contributions.
In this exclusive podcast, PV Murthy, a Labor Law Consultant at Economic Laws Practice (ELP) will explain the key provisions and how they will impact employers and employees.
PV Murthy is a qualified lawyer and the University topper in Labor Laws. PV has specialized in employment laws, labor relations, global employee transitions, and full-scale strategic and operational HR responsibilities. He has rich experience in handling labor law matters of various companies he has served with across various courts in India including the Hon’ble Supreme Court of India. He also brings to the table a deep specialization in the areas of employee relations, business strategy, talent management, leadership development, advanced Organization Development (OD), change management, executive coaching, culture building, and transformative leadership. With over three and a half decades of rich experience, PV has served as head of human resources at some of India’s finest companies. Most recently, he served as Executive Vice President and Global Head – Human Resources (CHRO) of the Indian Hotels Company Limited (Taj Group of Hotels). Prior to that PV worked with The Coca-Cola Company (TCCC) for a period of 15 years, 10 years of which he served as its Executive Director – Human Resources, Hindustan Coca Cola Beverages (HCCB) - a Board level position.
Some of the key points discussed in this podcast include:
- The complexities of the new labor codes
- The impact of these new labor codes on employers
- The new definition of wage and the exceptions to this
- How to work around the costs with full compliance
- When will the new labor codes come into effect