New Delhi: The central government has consolidated 29 existing labour laws into four simplified labour codes, which have now come into effect from Friday. Under the new framework, employees will become eligible for gratuity after just one year of service instead of the previous five-year requirement. Additionally, the gratuity ceiling has been doubled to Rs 20 lakh, and the entire amount will remain tax-free.

The new labour codes are expected to benefit crores of workers and employees by offering stronger protection, though they may also increase compliance responsibilities for employers. The updated codes—Code on Wages, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code—were passed in 2020, but implementation was delayed as rules

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