Dadra & Nagar Haveli and Daman & Diu Labour Code Rules

What is the floor wage and how does it work?

The floor wage is the minimum basic wage set by the Central Government below which no state government can fix its minimum wage. It ensures a national minimum standard of living for workers across all states. The floor wage may vary for different geographical areas.

How does the 50% rule affect wage calculations?

If allowances and exclusions (like HRA, conveyance, etc.) exceed 50% of total remuneration, the amount exceeding 50% is added back to 'wages'. This affects calculations for PF contributions, ESI, gratuity, and bonus. Employers must review compensation structures to ensure compliance.

What is the deadline for paying wages?

Monthly wages must be paid by the 7th of the succeeding month (changed from 10th earlier). On removal, dismissal, retrenchment or resignation, full and final settlement of wages must be completed within 2 working days.

What is fixed-term employment and what benefits does it include?

Fixed-term employment is hiring workers for a specified duration through a written contract. Workers get the same wages and benefits as permanent employees. They are entitled to pro-rata gratuity after completing at least one year of service.

What is a negotiating union vs. negotiating council?

A negotiating union is a trade union with 51% or more workers as members, giving it sole bargaining rights. A negotiating council is formed when no single union has 51% membership - unions with 20%+ members form the council with representation proportional to their membership. Recognition is valid for 3 years (extendable up to 5 years as per Section 14(6)). Recognition is now a statutory right, not employer discretion.

When are standing orders required?

Standing orders are mandatory for industrial establishments employing 300 or more workers. Employers must prepare draft standing orders within six months of the Code's commencement. They govern conditions of employment including work hours, leave, termination procedures, and disciplinary actions.

What is the 'one registration' concept?

The Code introduces a single registration system for establishments, replacing multiple registrations under various laws. Establishments with 10 or more workers must register under a unified framework within 60 days of applicability. This simplifies compliance significantly.

Are appointment letters mandatory?

Yes, every employer must issue an appointment letter to every employee containing terms and conditions of employment. This is mandatory for all establishments covered under the Code, with no exemptions based on worker category.

Can women work night shifts?

Yes, women are permitted to work in ALL establishments for ALL types of work, including night shifts (between 7 PM and 6 AM). Conditions include their consent, employer ensuring safety, security and dignity, and provision of adequate transportation.

Who are gig workers and platform workers?

Gig workers perform work outside the traditional employer-employee relationship, often on short-term contracts or task basis. Platform workers specifically access work through online platforms or apps (like ride-sharing, food delivery, etc.). Both are now eligible for social security schemes under this Code for the first time.

How much must aggregators contribute for gig workers?

Aggregators must contribute 1-2% of their annual turnover OR 5% of the amount paid to gig/platform workers, whichever is LOWER. This creates a funding mechanism for gig worker welfare schemes.

How does the 50% wage rule affect social security?

If allowances and exclusions exceed 50% of total remuneration, the excess is added back to 'wages'. This affects EPF contributions (12%+12%), ESI contributions, and gratuity calculations, potentially increasing employer costs.