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November 24, 2025

New labour codes: What every work from home employee in India should know

The CSR Journal Magazine

Pandemic has reshaped the work culture in India and pushed remote work into the mainstream. Post-Covid, even as life returned to normalcy, many industries continued with work-from-home to reduce operational costs and improve flexibility.
But the major question remains — do remote workers miss out on opportunities? The new Labour Codes have now given much-needed clarity.

Work from home ensures flexibility

The new codes on work-from-home arrangements state that as long as both the employee and employer agree, the arrangement can continue. A woman employee on maternity leave can, after mutual consent with the employer, opt for remote work. This ensures flexibility and removes the fear of job loss.

In the new code, the overtime issue has also been addressed. Anyone working beyond scheduled hours will receive twice the compensation of the regular wage. This restores balance and ensures fair pay.

What are the key changes?

1. Work From Home Allowed

Remote work in the service sector is now formally recognised. It can be arranged mutually through an agreement with the employer. This not only increases flexibility but also protects employees from arbitrary decisions.

2. Double Pay for Overtime

Any employee working beyond scheduled shifts will receive at least double wages. The criteria mentioned in the code are:
1. Overtime must be voluntary.
2. The earlier fixed limit of 75 hours per quarter is now flexible; higher overtime limits may be allowed.
3. Workers can earn extra, with the only requirement being the prevention of unhealthy work hours.
3. Medical Facilities for Work-from-Home Employees
All employees aged 40 and above are entitled to free yearly medical examinations.
4. Expanded ESIC Coverage
The earlier restriction of notified areas has been removed. ESIC coverage will now extend across India, with no geographical limitations.
5. Commuting Accidents Covered
If an employee meets with an accident while travelling between home and the workplace, it will be considered employment-related, making them eligible for compensation.

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