Manoj G. Nair is an XLRI alumnus with over two decades of HR experience. In conversation with Sanaa, a correspondent at The Columnist Forum, he highlighted his passion for soft skills and leadership development, emphasizing the importance of human interactions in building great workplaces. During the interview Manoj unpacked the complexities of the new Indian Labour Codes and why these changes are a shared responsibility for everyone in the workforce.
Read more to find out what the conversation looked like:
SANAA: Thank you so much for joining me today, sir. I’m honoured to have you share your knowledge with me today. Jumping into today’s main theme, can you elaborate why we have chosen to hold a workshop on the new Indian Labour Laws? What was the history of India’s old labour laws system like?
MANOJ: The new Indian Labour Codes has led to a consolidation of 40 fragmented laws into four streamlined codes. The old system was outdated and consisted of several scattered statutes framed as per old standards. It’s very important to create awareness about these changes to mitigate compliance risks and ensure smooth transition for employers, workers, and HR professionals. I believe it becomes all the more crucial to keep up with these laws to avoid compliance pitfalls, reduce legal risks, particularly for startups and MSMEs.
SANAA: As employees, it’s often easy to think that keeping up with government mandates is a policy-level task that only the HR department needs to do. What would you say to employees who believe this?
MANOJANOJ: Employees have a shared responsibility to understand wage codes and industrial laws, as these directly affect their earnings, job security, and rights. Employees should review their pay slips and contracts to ensure compliance with these laws, and being informed empowers them to use proper grievance mechanisms rather than resorting to emotional reactions or social media outbursts.
“A healthy workplace is the responsibility of both employees and management.” – Manoj G. Nair
SANAA: Since our upcoming workshop is about India’s new labour laws, can you share some insight on what some of the general mandates are?
MANOJ: So, some of the key mandates include –
- Standardized standing orders :establishments with 300 or more workers
- Equity in treatment :equal treatment for fixed-term and permanent employees
- Certified procedures : the requirement for industrial establishments to have certified standing orders covering classifications, hours, leave, terminations, and grievance procedures.
SANAA: One of my main takeaways from this is that the Code promotes equality and equity among different levels of workers, ensuring fair remuneration and respect for all positions.
MANOJ: That’s correct.
SANAA: Since we are on the topic of remuneration, can you talk to me about the Code of Wages 2019?
MANOJ: Code on Wages 2019 consolidates four legacy laws into a single framework regulating wage payments, minimum rates, bonuses, and equality across all sectors in India. The act mandates equal wages across industries and prohibits gender-based wage discrimination, while employers must restructure CTC to meet the 50% rule.
SANAA: While I understand that ensuring fair wages is important for the present, I’m also curious to know if these laws extend to future planning for employees?
MANOJ: Yes, there is an act called the Code on Social Security, and that is a recurring one. It establishes a periodic revision of national floor wages, the inclusion of various allowances in wage definitions, and the implications for social security contributions and gratuity calculations.
SANAA: That’s very insightful, sir. Finally, I just wanted to ask: Through all the years of experience you have collected within the field of HR, what are your top suggestions to HR heads and employees alike?
MANOJ: Of course, HR professionals need to prioritize restructuring CTCs to ensure basic pay. I think employees have to be vigilant, and audit contracts for mandatory appointment letters and redefining or reissuing them if applicable. As corporations, there is the onus on management to take permission from the government for layoffs and retrenchments, especially for companies with more than 300 employees.
Learn more about restructuring HR policies and staying legally compliant at the Next Gen Pathways Workshop. We encourage everyone reading to attend this session in order to be better employers and employees!
