The Modi government has capped weekly working hours at 48 under the new labour codes, amid an ongoing debate over working hours. As per the new labour code rules, the Code on Wages (Central) Rules, the number of hours constituting a normal working day for an employee whose wage period is not on a daily basis shall be fixed in such a way that the total weekly working hours do not exceed 48 hours.
If a person works beyond 48 hours, they will be paid double their defined hourly wages. Nearly four months after the draft rules under the four new labour codes were published for stakeholder consultation, the Centre on Friday notified the final rules under two of the codes-wages and industrial relations. However, for the other two codes, the old rules will remain in force until the final notification of the new ones.
It is important to note that employers can offer employees the option of a four-day work week with three days of rest. However, certain mandatory conditions must be fulfilled for implementing a four-day work week. Also, if an employer has offices in more than one state, the central government labour code rules will apply to them.
What are the conditions for a four-day workweek with three days of rest?
Talking to ET Wealth Online, Sajai Singh, Partner, JSA Advocates & Solicitors said that this provision for four-day workweek should not be considered a “mandatory provision as it is merely an option, allowing employers flexibility.” As per Singh, employers may allow a four-day workweek, so long as certain conditions are met.
Singh has pointed out these conditions:
- The employee should agree to the condensed workday and shorter workweek.
- The employer may not implement the same unilaterally.
- The workday typically becomes a 12-hour workday, in order to meet the mandatory 48-hour weekly limit.
- The 12-hour workday includes breaks and rests, as may be mandated by the State level laws.
- There are, therefore, three paid days off per week.
- Any work beyond the 12-hour, four-day schedule entitles employees to overtime pay at twice the regular wage rate.
Under section 83 of the Industrial Relations (IR) Code, the government has set up a National Reskilling Fund to ensure that workers who lose their jobs due to retrenchment are not just given a one-time severance pay but are also financially supported to learn new skills for re-employment.
The fund will be primarily financed by the employer, which has to contribute 15 days’ salary for every retrenched worker retrenched.