New Employment Laws – 2016

New Employment Laws – 2016

Employment Laws are the sets of rules set by the government of India for the fair and transparent working of the corporate world. Employment laws ensure Gender equality, Equal gender pay, Strictness against child labour, and fair salary pay. In 2016, Government of India has introduced new laws and added amendments to current laws. These new Laws consist of Gender pay reporting, Updated law on employing foreign workers, New Labor Code on Wages, Employee Insurance Act, Child Labor, Employee Bonuses, and Safety for women in the workplace.

New Laws for Employment Are

  • Gender Pay Report: It is made compulsory by the government that company having a large number of employees must publish the differences of pay in between men and women. If a company have more than 250 employees then the company has to publish the differences in the pay between men and women. This information must contain the differences in bonus pay as well.
  • Updated law on employing foreign workers: The law on employment of the foreign worker is updated which includes the creation of an offence on illegal working, the public-sector employee who need to face the public must speak English fluently and there is also an introduction of skill charge on immigration of the foreign workers.
  • New Labor code on wages: Introduced a uniform and more comprehensive definition of the “wages” for calculation of benefits and compensation. Labour inspector is replaced by the facilitators for providing guidance to the employers for ensuring their compliance with the law. Strict prohibition of unfair discrimination in pays for transgender.
  • Employee insurance act: the government has made it compulsory for the employers to provide insurance to the employee and provide the benefit to the employee according to the Employee Insurance Act. This law is introduced to make a competition between insurance providing agencies and to encourage them to make products for the benefit of Employees from the Employee Insurance Act.
  • Child Labour: The union cabinet has Amended Child Labor Act. Amendments are a strict prohibition of a child below 14 years of age in every occupation and employment, allowing children to help a family in non-hazardous work after school hours, and increase the penalty for the employer involved in the employment of child labour.
  • Employee Bonuses: this law was announced on Jan 1 of 2016 and is effective thereafter. According to Employee bonuses Act, there must increase the eligibility criteria of an employee for statutory bonuses of 21,000 rupees per month. Wage bonus has been increased from 3,500 rupees to 7000 rupees per month according to the Minimum Wage Act.
  • Women in the workplace: the ministry of child and women affair has introduced a law for the security of women in the workplace. The ministry of women affairs has released guidelines for the prohibition, prevention and punishment for women harassment in the office. There must be an internal committee for the regulation of women welfare and security in the workplace. The employer must take care their female employees and cases of harassment must be dealt with utter care and within shortest possible time, and offenders must be penalised.

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