New Labour Codes mandates issuing Appointment letter

The 4 new labour laws aims to standardise definitions and procedures at workplaces. The new laws will consolidate and replace the current 29 central labour / work related laws and regulations. 

Under one of the codes, 'The Occupational Safety, Health and Working Conditions Code, 2020' ('OSH Code') a provision has been introduced which mandates the employer to share an appointment letter with the employee.

Appointment Letter: A Legal contract

?Under the new provisions now an appointment letter will be treated as a legal contract between the employer and the employee. It would have the details of the employee and his/her roles, responsibilities, wage information and terms and conditions of the employment. 

The appointment letter needs to be issued on or before the start of the employee tenure. 

Once the OSH code, officially comes into force, the appointment letters if not issued, needs to be issued within three months of effective date of new law.

Appointment Letter: Information to be mentioned

?As per the new rules, following information needs to be mentioned in the appointment letter:

• Name of the employee
• Fathers' name
• Aadhaar number
• Labour Identification Number (LIN) of the establishment
• Universal Account Number (UAN) / Insurance Number (ESIC)
• Designation
• Category of skill
• Date of joining
• Wages
• Other allowances (if applicable)
• Avenue for achieving higher wages/higher position i.e., what are the growth / promotion options available to an employee
• Applicability of social security - PF / ESIC benefits
• Health check-up
• Broad nature of duties to be performed
• Any other information

The above information will ensure transparency and introduce standardisation across the industry which will be easier for everyone to comprehend.

One should note that there are legal penalties on the employer for non-compliance.