Labour Codes Recognize and Regulate WFH Arrangements
The imminent operationalization of the four comprehensive Labour Codes is set to bring India’s archaic employment framework in line with the flexible realities of the post-pandemic economy.
A significant provision is found within the Occupational Safety, Health and Working Conditions (OSH) Code, 2020.
This provision is the formal recognition and regulation of the Work From Home (WFH) arrangement.
This move, long sought by the IT and service sectors, establishes a defined legal basis for remote work.
This is contingent upon mutual consent between the employer and the employee.
Legalizing the Post-Pandemic Norm
The work-from-home model exploded globally following the 2020 pandemic.
However, it previously operated in a legal grey area in India, largely governed by state-level Shops and Establishments Acts or internal company policies.
The new OSH Code provides the first statutory recognition of WFH at the central level.
This is particularly significant for employees in the burgeoning IT and service sectors, where the nature of the job permits remote working.
Crucially, the code stipulates that any such arrangement must be based on a mutual agreement.
This prevents employers from unilaterally imposing remote work without providing necessary infrastructure support.
It also grants employees the right to negotiate the terms of their remote working setup.
Labour Codes Special Focus on Women and Flexibility
The provision for WFH is prominently featured alongside other women-centric reforms, showcasing the government’s intent to boost female workforce participation.
The OSH Code specifically states that employers may permit work from home for women returning after maternity leave, if the nature of the work permits.
This permission is based on mutual agreement.
This flexibility is integrated with other progressive measures in the Code, including the extended maternity leave of 26 weeks, mandatory crèche facilities, and permission for women to work night shifts.
This is allowed with their consent and mandatory safety safeguards provided by the employer.
The legal recognition of WFH therefore acts as an enabler, aiding women in balancing professional and personal responsibilities.
Compliance and Operational Impact
For employers, the formalization of WFH arrangements means that company policies must now align with the Code’s provisions.
The Code does not prescribe detailed rules on infrastructure, working hours, or stipends; these are expected to be addressed in subsequent state rules or through formal contracts.
However, it establishes the principle of accountability.
Experts suggest the mandatory mutual consent clause will require businesses to document WFH terms meticulously.
The ability of state governments to set flexible working hour limits—such as a four-day week with longer daily hours—further underscores the shift.
This shift is toward a flexible, results-oriented labour model.
Overall, the WFH provision under the new Labour Codes is a regulatory recognition of a modern work style, institutionalizing flexibility.
It ensures worker rights are protected through clear, consensual terms.
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