1. Gratuity — Now Even for Short-Term & Contract Workers
Earlier, gratuity was given only if you completed 5 years in the same company.
Now:
• Even contract or fixed-term employees can get gratuity
• Gratuity will be based on how long you worked, even if less than 5 years
Good news for project-based or short-duration employees.
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2. Working Hours — More Flexibility
Your total weekly work limit will still be 48 hours but companies can choose how to split these hours:
Examples:
• 4 working days → long hours per day
• 5 working days → normal hours per day
• 6 working days → fewer hours per day
Also:
• Overtime must be paid at double pay
• Proper rest breaks must be given
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3. Salary Structure — Take Home Salary May Reduce
As per the new rules:
• Basic salary must be 50% of total salary
This means:
PF and gratuity will increase → better future savings
✘ Take-home salary may reduce for some employees
So, less cash today, but more benefits for the future.
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4. Paid Leaves — Same Rules Everywhere
Leave rules will become more similar across India. This includes:
• Annual leaves
• Sick leaves
• Maternity leaves
• Carry-forward and encashment rules
This helps employees get fair leave benefits in every state.
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5. Full & Final Settlement — Faster Process
When you leave a job:
• Company must clear dues within a shorter time
• This includes salary, leave encashment, bonus, claims, etc.
No more long delays in getting your settlement!
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6. Social Security — More People Covered
Benefits like PF, ESI, insurance etc. will now cover:
• Salaried employees
• Contract/fixed-term workers
• Gig workers (like delivery partners, app-based workers)
This gives better financial safety for all working people.
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In Simple Words
These new laws are made to:
• Protect employees better
• Give more savings for future
• Improve work-life balance
• Make companies follow clear rules
The laws are active, but states are still finalizing some procedures. Companies must start updating their HR and payroll systems based on the new rules.
