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    New labour codes will bring new appointment letters with Aadhaar, a job growth direction for all employees

    • Under the Occupational Safety, Health and Working Conditions Code, 2020′ (‘OSH Code”), it is obligatory for a company to issue an appointment letter to a worker in a specified format. 
    • The appointment letter issued to current personnel should meet the format prescribed by the authorities. 
    • The new appointment letter mandates citing of Aadhaar number, UAN, career growth alternatives etc. 

    The four new Labour Codes’ goals are to standardise definitions, simplify processes and make sure wider coverage of the workforce. The new laws, waiting for an effective notification date, will consolidate and replace the current 29 central labour policies. 

    One of the codes ‘The Occupational Safety, Health and Working Conditions Code, 2020’ (‘OSH Code”) and Rules has brought particular provisions referring to the issue of the appointment letters and has prescribed formats for the same (phase 6 of the OSH Code read with Rule 7 of the OSH Rules). 

    The thirteen current policies do not have specific provisions associated with the issuance or the layout of appointment letters. Appointment letter: A legal contract An appointment letter is a legal agreement between the company and the worker. It is issued by the company, confirming the process role/position of the worker in the organisation and detailing the terms and conditions of employment. 

    As indicated above, under the OSH Code, a company has to mandatorily issue a letter of appointment in a format that can be prescribed by the right authorities authority to every worker on his/her appointment in the establishment. The OSH Code in addition states that if any of the workers has not been issued “such an appointment letter on or before the commencement of the Code”, then the company must issue one within 3 months of the commencement of the Code. 

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    This is in comparison with the existing scenario in which no format is prescribed. Thus, even though a worker has already been issued an appointment letter, prior to the new legal guidelines getting into effect, then a new appointment letter will need to be issued within 3 months of the effective date of the new law. 

    The new appointment letter will need to be in the format prescribed through the Code Information in an effort to have to be stated in the appointment letter. According to the OSH Rules, the following information desires to be mentioned in the appointment letter – 

    (i) Name of the worker; 

    (ii) Father’s name; 

    (iii) Aadhaar number; 

    (iv) Labour Identification Number (LIN) of the establishment; 

    (v) Universal Account Number (UAN)/Insurance Number (ESIC); 

    (vi) Designation; 

    (vii) Category of skill; 

    (viii) Date of joining; 

    (ix) Wages as according to Code on wages 2019; 

    (x) Other allowance, along with accommodation (as applicable); 

    (xi) Avenue for achieving better wages/better position i.e., what are the growth/promotion alternatives available to a worker; 

    (xii) Applicability of social security – Employees Provident Fund Organisation and ESIC benefits; 

    (xiii) Health check-up; 

    (xiv) Broad nature of responsibilities to be performed; and 

    (xv) Any other records.

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