Tip payment after one year of service: Modi plans this for fixed-term employees

In the proposed Labor Codes, he said there is a provision for tip on completing one-year service compared to the current five-year condition.

Tip payment after one year of service: The Union government has proposed several social security measures for workers affected by the COVID-19 pandemic. At a press conference on Thursday, Finance Minister Nirmala Sitharaman discussed various measures in the Labor Codes proposed for the benefit of workers, including the payment of Tips for Fixed Term Employment. In the proposed Labor Codes, he said there is a provision for tip on completing one-year service compared to the current five-year condition. When implemented, this will benefit workers who lose or leave their jobs within five years.

Other provisions in labor codes:

Sitharaman listed several other provisions in the labor codes:

– The Social Security Plan for Gig and Platform workers will be launched. A retraining fund will be introduced for laid off employees.

– The FM said that all occupations will be opened for women and they will be allowed to work at night with safeguards. There will be provision for the Social Security Fund for unorganized workers.

– There will be universalization of the right to the minimum wage and timely payment of wages to all workers, including unorganized workers. Currently, the minimum wage rule is applicable only to 30 percent of workers.

– A statutory concept of National Floor Wage will be introduced. This will reduce the regional disparity in minimum wages. The setting of the minimum wage will be simplified.

– All workers will receive appointment letters to promote formalization. There will be an annual health check-up for employees.

– The definition of interstate migrant worker will be modified to include migrant workers directly employed by the employer, workers who arrive directly at the State of their own destination, as well as migrant workers employed through a contractor.

– There will be portability of welfare benefits for migrant workers.

-ESIC coverage will be expanded across India to all districts and all establishments employing 10 or more employees compared to those in notified districts / areas only. ESIC coverage will be extended to employees who work in establishments with fewer than 10 employees on a voluntary basis. There will be mandatory ESIC coverage upon notification by the Central Government for employees in hazardous industries with less than 10 employees.