Top News

The biggest complaint of employees who work continuously in the office is that the earned leaves they get in return for their hard work get exhausted without being used. But now a permanent solution to this big problem has been found through the new Labor Code 2025 (Occupational Safety, Health and Working Conditions Code- 2020). This new law has brought a big sigh of relief for the working class. Whereas earlier employees had to wait a long time to leave their job, retire or be fired from the company to get the remaining leave money, now they will be able to convert their excess leave into encashment every year.

'Earn leave' will be available only after 6 months of employment.

Under the new rules, employees will no longer have to wait long to become entitled to 'earned leave'. In the old Factories Act (1948), it was mandatory to work continuously for 240 days. But, in the new Labor Code, this limit has been reduced to only 180 days (about six months). That is, if an employee has rendered continuous services for 180 days in a calendar year, he becomes entitled to leave with pay. This change will be implemented uniformly across the country. However, in states where better rules already exist (such as the right to leave without any minimum period), employees will continue to benefit from those better rules.

There will be no loss if you do not take leave.

It often happens that an employee applies for leave, but the company or the boss rejects it citing work commitments. In the old system, in this situation the leave of the employee would have gone waste. The new Labor Code 2025 has completely ended this injustice. A very important security measure has been added to this. If an employee has asked for leave and the employer rejects it, the leave will not lapse. Instead, they will be carried forward to the next year without any upper limit. With this rule it has been decided that the employee will no longer have to bear the brunt of any compulsion of the company by losing his holidays.

There will be additional income every year from the remaining holidays.

The most attractive aspect of this new labor code is the facility of annual encashment. According to experts, now employees can carry forward maximum 30 days of leave to the next year. If an employee has accumulated more than 30 days of leave, he can demand money in lieu of those additional leaves. Not only this, at the end of the year, if the employees wish, they can claim to convert all their accumulated leaves into cash.

Which employees will get the benefit?

These attractive benefits of the new labor code are not for everyone. It is mainly designed for workers who do manual, unskilled, skilled, technical, operational or clerical work and whose monthly salary is less than Rs 18,000. If an employee is a supervisor and his salary is more than Rs 18,000 per month, or he is working in a manager and administrative position, then he will not get these specific benefits under this code. Also, it is important to note that many states have not yet notified these new labor codes. Therefore, until it is implemented in your state, your company can operate on the old rules.