India: Preparing for New Labor Laws in 2021

The federal government established new labor codes that will combine 29 existing labor laws into four new codes with fewer regulations. These codes will be implemented following finalization between state and federal governments.

The new codes include some key changes to laws covering wages, industrial relations, health, safety and working conditions and social security. Notably, wages will be defined as 50% or more of an employee’s total gross pay. This change could lead to higher gratuity and provident fund payments for companies. Rules on health, safety and working conditions will better define contract labor and require companies to classify workers accordingly.

Takeaway: Penalties for noncompliance under the new labor codes will be much higher than in the past. In particular, companies should make sure they have the data and expertise in place to document and assess the non-employee workforce according to classification rules. Visibility into all labor sources, data to ensure consistent classification and expertise to recommend and support corrective action are all important in minimizing risk. AGS is helping companies around the world address similar needs and can be a valuable partner in supporting compliance with the new codes.

COVID-19

Coronavirus Considerations for Businesses

North America

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EMEA

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Ireland: Increased Rights for Workers Facing Redundancy

APAC

Singapore: New Initiatives Help People with Disabilities Secure Employment

Australia: Calls for Nationwide Regulation Following Successful Labor Hire Scheme