Are These Proposed Changes to Labor Laws Real? Seeking Confirmation and Details

Hi, recently I received an email from an HR professional stating that the Ministry of Labour Development has proposed the following changes in existing labor laws:

1. Maternity Leave: Instead of 3 months, 6 months will be applicable.
2. Ceiling Limit for Bonus: Previously set at 10,000/-, the proposed ceiling limit is 19,000/-.
3. Gratuity Applicability: Even if an employee leaves the organization before 5 years, they are still eligible to claim gratuity.

Is this proposal genuine, and is there any gazetted notification available?

These are just proposals and have not been passed yet. You will receive Gazette notifications only if Parliament approves them. So far, there have been no changes.

Dear Sir,

The above proposals are genuine. Yet to come is the Gazette Notification for the same. If all goes well, they will shortly be amended by both houses (Lok Sabha and Rajya Sabha). Hoping for the best.

With regards,
Nanjegowda

Ministry of Labour Affairs has proposed the following changes in existing labour laws:

1. Maternity Leave: Instead of 3 months, 6 months will be applicable.
2. Ceiling Limit for Bonus: Previously set at 10,000/-, it is now proposed to be raised to 19,000/- as the ceiling limit.
3. Gratuity Applicability: Even if an employee leaves the organization before completing 5 years, they are still eligible to claim gratuity.

Note: The Gazette Notification is yet to be released.

With Thanks and Best Regards,

Nanjegowda
9945282846

This is only proposed. There are no changes in any labor right now. The labor ministry is considering changes in various labor laws, and they have posted the draft code on their website for suggestions from various forums.

Thank you for reaching out.

These are proposed only. It may take years to be implemented. As far as Gratuity Applicability: "Even if an employee leaves the organization before 5 years, they are eligible for a gratuity claim." The proposal is that they are not eligible for a gratuity claim; it is to be made portable.

Yes, the Gratuity law has been amended to reduce the eligibility period from 5 years to 4 years, with 240/190 days required for calculation.

According to the Payment of Gratuity Act, 1972, an employee becomes eligible for gratuity after completing five years of service. However, an employee who has worked for 240 days in the fifth year can also claim gratuity to complete the 5 years of service with that organization.

I am not sure about others, but the ceiling limit of the Bonus Act is proposed to increase to Rs. 25,000, not Rs. 19,000. However, this is still a proposal and has not been implemented yet.

Maternity Leave Update

With reference to your email:

• Maternity Leave: Instead of 3 months, 6 months is applicable. The proposal is for increasing maternity leave from 12 to 26 weeks (6.5 months). (Govt to increase maternity leave in the private sector to 26 weeks | The Indian Express). Gazette notification attached.

Ceiling Limit for Bonus

• Ceiling Limit for Bonus: Earlier, it was 10,000/-, proposed to 19,000/- as the ceiling limit. The ceiling limit increased to 21,000/- as against 10,000/-, and also the calculation limit increased from 3,500/- to 7,000/-. Notification attached.

Gratuity Applicability

• Gratuity Applicability: Even if an employee leaves the organization before 5 years, they are eligible for a gratuity claim. Notification awaited.

Regards,
Gaurav

Notification attached for amendment in the Bonus Act.