WFH Just Got Fairer: India’s New Labour Codes Explained
Working long hours and not getting paid enough, working from home? No more. The new rules say ‘take 2x salary for it.’ Here's why...
Many say, WFH never ends. And, as a matter of fact, according to a Frontline article, a regular private employee works up to 12-14 hours a day. What is supposed to be a 9-hour shift ends up being underpaid most of the time. But the new Labour Codes in India are rewriting the way WFH is functioning. The government addressed several concerns that remote and work-from-home employees often have. So, will overtime working from home get paid too? Can health insurance be granted? For all that, learn more.
Work From Home Is Now Officially Allowed
(But Only With Agreement)
- In case you are an employee in the service sector, you can officially work from home.
- However, the employment must be a mutual agreement. The offer to work from home may come from the company, or you may negotiate with it. It shall have mutual consent.
- If you are pregnant, you can request to work from home. You can now take that flexibility and secure your job.
Overtime Must Be Paid at Double the Salary
This is a common concern among many work-from-home employees: they work extra hours and don't get paid properly. But now:
- In case you work extra hours beyond your regular shift, report it to your employer (or manager), and they'll have to pay you double your regular hourly wage.
- For instance: If you get paid INR 500 per hour, your overtime rate must be INR 1000 per hour.
Overtime rules simplified:
- No more normalising overtime as voluntary work or even forced.
- You get paid a 2x fee for working overtime.
- Earlier, workers were allowed to do only 75 hours of overtime per quarter.
However, that's now changed to:
- Each state will decide how many maximum overtime hours are allowed.
- This has come into place to protect employees who are unfairly forced to work overtime. And condemn companies that try to make overtime the 'new normal.
‘Free Health Check-Ups for Employees 40 Years Old
If you're 40 years or older, you'll now get a free health check-up or tests once a year.
The idea is to prevent any health issues and to support early detection.
ESIC Coverage Extended Everywhere
ESIC (Employee State Insurance Corporation) now offers medical and insurance benefits, meaning many more people will have access to them.
The changes include:
ESIC, from now on, will apply all across India, not just in areas notified earlier.
It will cover:
- Plantations
- Smaller units
- Units handling hazardous substances
Travel Accidents Will Count as “Employment Accidents”
- In case you met with an accident while travelling from home to your workplace, it will be considered an employment injury.
- And you'll get compensation for it under labour laws. This also applies to the work-from-home employees, even when the travel is occasional.

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