In a step towards recognising the importance of work-life balance, the government's upcoming labour laws will introduce several changes aimed at benefiting employees in multiple ways. Among these changes, one law will require companies to provide compensation to employees who have accrued more than 30 days of unused leave.

According to the Occupational Safety, Health and Working Conditions Code, 2020, an "employee" is defined as an individual who is engaged in performing any type of work, whether it is skilled or unskilled, involving either physical or clerical tasks, within or associated with the operations of an establishment. 

This definition applies regardless of whether the terms of employment are explicitly stated or inferred.

The code additionally specifies that individuals in managerial or supervisory roles are excluded from the definition of "employee." Managerial employees are those tasked with overseeing the overall management of the establishment, whereas supervisory employees are responsible for supervising the work of other employees.

The four labour laws, namely the Occupational Safety, Health and Working Conditions Code; Code on Wages; Industrial Relations Code; and Social Security Code, have been approved by Parliament and officially published by the government. 

Nevertheless, they have not yet become operational, and the specific date when they will take effect has not been announced. These codes represent some of the most significant economic reforms initiated by the Modi government.

Leave encashment refers to the payment made by an employer to an employee for the paid leave days that the employee hasn't used at the time of retirement or when they resign from their job. According to labour laws, every salaried employee is entitled to a specific number of paid leave days each year. 

However, employees are not always obligated to use all of these accrued leave days, and in many cases, employers permit them to save or carry over unused leave days to be used in future years.