New Labour Codes to address grievances in IT industry properly: Nasscom

The industry body said the Codes will bring clearer terms, stronger protections and uniform benefits for contract, gig and platform workers

The four new Labour Codes will provide expanded coverage of social security, equal pay and structured grievance mechanisms for IT and ITeS employees, which is relevant to a skilled and mobile talent base, IT industry body Nasscom said on Friday.

 

These changes can support workforce mobility, strengthen trust and enhance India’s attractiveness as a hub for high-value technology and digital services, it added.

 

“For the technology industry and its workforce, the eventual full implementation of the Codes can bring greater predictability and transparency. Provisions on written appointment letters, fixed-term employment with parity of benefits, expanded coverage of social security, recognition of gig and platform work and specific attention to timely salary payments.”

 

Experts say that since a large portion of the IT industry works through fixed-term contracts, vendor arrangements, staffing agencies and project-based deployments, the implementation of these Codes will ensure that such employees receive the same benefits as permanent employees for the duration of their contract.

 

Rules around working hours and overtime are also expected to become more uniform. 

 

Nasscom said these changes can support workforce mobility, strengthen trust and enhance India’s attractiveness as a hub for high-value technology and digital services. The industry body will focus on supporting a smooth and practical transition for the industry. A key priority will be to help ensure that the central framework under the Codes is harmonised with state-level requirements, including shops and establishments laws, so that overlapping obligations and unintended compliance challenges do not arise.

 

“The Social Security Code expands the definition of ‘employee’ and ‘worker’, which may bring many people engaged through staffing companies and gig-based models under PF and other benefits, something that has been a long-standing demand from IT workers,” Harpreet Singh Saluja, president of the Nascent Information Technology Employees Senate (NITES), said. 

 

The Code will also help in standardisation of wage components across states and digitisation of compliance, which can help prevent wage deductions, arbitrary recoveries and denial of benefits during job transitions. “The requirement of transparent employment terms and timely wage payments will also help reduce disputes, especially in cases where companies delay salaries or force employees to resign without notice,” Saluja added.