After the Covid-19 pandemic, work from home became a normal part of life for millions of employees across the world. In India too, many IT companies and private firms permanently adopted the WFH model.
Now, the central government is preparing to give work from home official legal recognition through the new labour and wage code.
Until now, WFH mostly depended on mutual understanding between employees and companies. But with the new rules, employees working from home may soon get legal protection, fixed work policies, and extra benefits.
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Government Gives Official Recognition to Work From Home
For the first time, the government has included work from home provisions in the new Model Standing Orders under the labour code.
This means companies may now have to create proper work-from-home policies for employees. Both the company and employee will be able to choose WFH through mutual agreement.
The biggest advantage is that service conditions related to WFH will now become legally valid. If any dispute happens in the future, employees can also get legal protection.
This move is expected to benefit millions of people who continue to work remotely instead of visiting offices daily.
Employees May Get Internet and Electricity Allowance
One major issue for work-from-home employees has always been extra household expenses.
In offices, companies pay for electricity, internet, furniture, and other facilities. But while working from home, employees often bear these costs themselves.
The new wage code indicates that companies may provide reimbursements or special allowances for:
Internet bills
Electricity expenses
Home office setup
Work-related stationery
Many companies already provide WFH allowances, but the new rules may help create a clearer and more standard system.
However, there may also be changes in salary structure. Under the new wage code, basic salary must be at least 50% of the total CTC. This could increase PF and gratuity contributions but may slightly affect in-hand salary.
Fixed Working Hours and Overtime Rules
Another common complaint during work from home has been unlimited working hours.
Many employees feel they end up working longer than normal office hours without extra pay. The new wage code aims to fix this issue.
According to the proposal, companies may need to define proper shift timings even for employees working remotely. If employees work beyond the fixed hours, they could become eligible for overtime pay.
This step can improve work-life balance and reduce stress among employees.
The government also wants to ensure that WFH employees receive the same leave benefits and workplace rights as office employees.
Companies May Face More Responsibility
While the new rules bring relief for employees, they may increase responsibilities for companies.
Businesses may need to follow stricter rules related to:
Employee working hours
Social security benefits
Overtime policies
WFH allowances
Legal protection
The new labour code also strengthens social security schemes like EPF, ESIC, and gratuity for employees working from home.
Important Questions About Work From Home
What is Work From Home?
Work from home means employees complete office work from their homes instead of going to the workplace. They use laptops, mobile phones, and the internet to stay connected with teams and finish official tasks.
Will employees get overtime while working from home?
Yes, under the proposed rules, employees working beyond fixed working hours may become eligible for overtime payment.
Can salary decrease because of WFH rules?
The new wage code requires basic salary to be at least 50% of CTC. This may increase PF and gratuity deductions, which could slightly impact take-home salary but improve retirement savings.
Will companies pay internet and electricity bills?
The new rules suggest that companies may offer special allowances or reimbursements for internet, electricity, and home office expenses.
Will WFH employees get the same benefits as office employees?
Yes. Employees working from home are expected to receive equal benefits such as EPF, ESIC, gratuity, and paid leave.