After the Covid-19 pandemic, it has become a challenge for companies to shift to work from home and remote working models, and now the four-day work week model definitely will be a tough task to handle.
The workers from various companies across the UK have started a four days work week from June 6 as a pilot plan that will run for 6 months. It will work with the same pay while working for 4 days a week.
The focus will be that the employees continue to hit productivity targets set by their employer.
What is a four-day week?
The programme is being organised by not-for-profit 4 Day Week Global, Autonomy and the 4 Day Week UK Campaign in partnership with researchers from the Cambridge University, the Oxford University and the Boston College.
The largest companies from across sectors – from financial services to hospitality – are participating in this four-day work week pilot plan.
The main principle behind this is getting 100 percent pay for working 80 percent of their work hours in exchange for maintaining 100 percent productivity.
There are over 150 companies and 7,000 employees that have signed up to participate in the six-month coordinated trials of the four-day working week as part of the 2022 programme.
These countries include the United States, Canada, UK, Ireland, Australia, and New Zealand.
Four-Day Week Work In India?
According to the media report, the four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented from July 1, 2022.
The long-awaited introduction of four labour codes was originally scheduled to happen at the beginning of the current fiscal year. The new wage code will impact working hours, 4-day week salary restructuring and PF contribution, encashing of Earned Leaves after implementation.
Central Government has already notified four labour codes and is trying to implement them shortly. However, it will need at least three months to come into effect as all states have not prepared the rules yet.
The central government has worked on designing the four new labour codes. These significant changes will be effective changes to the employee’s salary, their PF contributions and work hours etc.
This will encourage investment in the country. Also, the employment opportunities will increase.
Impact of Labour Codes in India
Working Hours: If new labour codes are implemented by the Centre Government from July 1, the official working hours may increase to 12 hours with a 4-Day Week.
The report suggests that the Centre is planning to implement the new rules as soon as possible. The companies may have to give employees work for four days instead of five and there will be three weeks offs.
Take-Home Salary and PF contribution: As per the new labour laws, the basic salary will be 50% or more of the total salary.
The direct impact on the salary structure of most of the employees. The PF and gratuity money will be deducted more than before.
The increase in the PF contribution will directly affect the take-home salary as it will decrease but it will increase retirement contribution.
