Once the new labour Codes are made effective, restructuring of salary will be imperative keeping in view the new definition of wages, leading to increase in CTC.
From April, when the next financial year begins, and the Labour Codes are introduced, the employers will have to restructure the wages of the employees in view of the increased gratuity and the leave-encashment provisions. Already reeling under the Covid impact, the employers should do their homework for restructuring of wages before the Codes are made effective. There are hidden provisions that will increase costs to companies (CTC). Some adjustments can be made on granting of annual increment since any steps in this direction after 1st April 2022 would be nearly impossible in view of section 40 of the Industrial Relations Code 2020.
Labour and employment regulations have far-reaching implications for every business organisation. Firstly, these are crucial for a congenial and harmonious relationship between employers and employees. One cannot have...
