n a significant move to acknowledge work-life balance, the government’s new labour laws will have a few changes that will benefit employees in more than one way. One of the laws will mandate companies to compensate employees who have not claimed more than 30 days of leave.
The Occupational Safety, Health and Working Conditions Code, 2020 defines an "employee" as a person who is employed to do any work, skilled or unskilled, manual or clerical, in or in connection with the business of an establishment, whether the terms of employment be express or implied.
The four labour laws — Occupational Safety, Health and Working Conditions Code; Code on Wages; Industrial Relations Code; and Social Security Code — have been passed by Parliament and notified by the government. However, they have not yet come into force. The effective date of the laws has not yet been announced. The codes or laws are one of the most major economic changes implemented by the Modi government.
Leave encashment is the compensation made by an employer to an employee for unutilized paid leaves at the time of retirement or resignation. Every salaried employee is entitled to a certain number of paid leaves each year under labour legislation. Employees are not required to use all of their accrued leaves, and many employers allow them to carry over unused leaves to later years.
