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India’s Labour Laws Revamped: New Workplace Rules and Worker Protections Outlined

Centre notifies new rules under Labour Codes: Know your wage, leave, medical rights

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The Indian Ministry of Labour and Employment has officially released the Model Standing Orders, 2026, which establish a new set of comprehensive regulations governing workplaces across the mining, manufacturing, and service sectors. These orders came into effect immediately, superseding the Industrial Employment (Standing Orders) Central Rules, 1946, as detailed in the Gazette of India.

These updated rules, issued under Section 29(1) of the Industrial Relations Code, 2020, are designed to modernize workplace standards and provide greater clarity regarding the rights and responsibilities of both employers and employees. The initiative aims to streamline labor practices and foster a more transparent and equitable working environment across various industries. As per information available with TahirRihat.com, the new framework intends to address contemporary challenges in the labor market and ensure fair treatment for workers in a rapidly evolving economic landscape.

The applicability of the new regulations extends to industrial establishments categorized into three main sectors: mining (Schedule A), manufacturing (Schedule B), and services (Schedule C). Employers who choose to adopt these model orders are required to notify the certifying officer electronically. Following this notification, the orders will automatically apply to all units within that establishment, irrespective of their geographical location.

Under the revised framework, workers are classified into seven distinct categories based on their employment status and nature of work. A permanent worker is defined as someone engaged on a permanent basis or an individual who has successfully completed a six-month probationary period. A temporary worker is hired for tasks that are inherently temporary. An apprentice is someone undergoing formal training as stipulated under the Apprenticeship Act, 1961. A probationer is provisionally employed to fill a permanent position but has not yet finished six months of service.

A badli or substitute worker is appointed to cover for a permanent worker or probationer who is temporarily absent. Fixed-term employment refers to a worker hired for a specific period through a written contract. Finally, a casual worker is engaged for work that is essentially casual or incidental in nature. Each classification carries specific rights and obligations, ensuring that workers are treated appropriately according to their employment type.

A key provision within the new orders focuses on protections for fixed-term employees. The regulations explicitly state that the wages, allowances, and working hours of fixed-term employees must not be less favorable than those of permanent workers performing the same or similar work. These employees are entitled to all statutory benefits on a proportionate basis. Additionally, they become eligible for gratuity if they complete at least one year of service, calculated at the rate of 15 days’ wages for each completed year. Notably, the termination of a fixed-term contract will not be considered as retrenchment under the Industrial Relations Code, offering greater flexibility to employers while safeguarding workers’ entitlements.

Every worker is mandated to be issued an identity badge or card containing essential information such as their name, designation, employee number, blood group, contact details, emergency contact information, and a recent photograph. Workers are required to wear this card during working hours and must return it upon leaving employment. The use of another person’s identity card is strictly prohibited. Attendance must be recorded accurately at the start and end of each shift, utilizing identity cards, biometrics, or any other officially notified system. These measures aim to enhance security and accountability within the workplace.

Employers have the discretion to operate multiple shifts. However, they must provide a written notice of 21 days before discontinuing, restarting, or altering any shift. This notice must be prominently displayed on the notice board, and a copy must be sent to the secretary of any registered trade union present. The 21 day notification is waived only in genuine emergencies, or when changes are mandated by a government order, settlement, or award. This provision ensures that workers are adequately informed of any changes to their work schedules.

Paid leave entitlements are governed by the Occupational Safety, Health and Working Conditions Code, 2020, while other forms of leave are regulated by applicable laws, contracts, customs, and established practices. Workers are generally allowed up to 10 days of casual leave per calendar year, with a maximum of three days at a time, except in cases of illness or unforeseen circumstances. Leave applications must be submitted at least seven days in advance. If a leave request is denied or postponed, the employer must provide written reasons for the decision. Furthermore, workers are prohibited from engaging in any form of paid employment during their leave period.

The orders specify precise timelines for wage payments, depending on the nature of workers’ engagement. Daily wage workers must be paid at the end of each shift. Weekly workers are to be paid on the last working day of the week. Fortnightly workers must receive their wages within two days of the end of the fortnight, and monthly workers are to be paid by the 7th day of the following month. All wage payments must be made electronically into the worker’s bank account, ensuring transparency and accountability. In cases of dismissal, retrenchment, or resignation, all outstanding dues must be settled within two working days. No deductions can be made from wages, except those explicitly authorized under the Code on Wages, 2019.

Every establishment is required to maintain a detailed service card for each worker, either electronically or manually. This card should include information such as the worker’s date of birth, employment history, qualifications, family details, provident fund and ESI numbers, disciplinary record, promotions, and superannuation date. Workers are entitled to receive a service certificate within 10 days of leaving employment, which should detail the nature of their work, designation, and period of service. This ensures that workers have a verifiable record of their employment history. The retirement age is determined by mutual written agreement between the employer and the worker. In the absence of such an agreement, the default retirement age is set at 58 years.

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