Work From Home Under India’s New Labour Codes

Work From Home (WFH) is now a regular practice in many companies. But from a legal perspective, an important question arises:

Does labour law still apply when an employee works from home?
 What are the legal risks for employers?

Yes. Labour law fully applies—even if the workplace shifts to the employee’s home.

 Is Work From Home Recognised Under the New Labour Codes?

WFH is mainly connected with:

• Occupational Safety, Health and Working Conditions Code, 2020
• Code on Wages, 2019
• Code on Social Security, 2020

The law does not provide a detailed chapter exclusively for WFH. However, it allows the government to frame rules for work from home or work from any place.

Legally

·       WFH is permitted.

·        But it is not outside labour regulation.

 Salary & Wage Protection

From a legal standpoint, the place of work does not affect wage rights.

Even in WFH:

• Minimum wages must be paid.
• Salary must be paid on time.
• Overtime must be paid, if applicable.
• Equal remuneration rules continue.

An employer cannot reduce salary simply because the employee is working remotely, unless lawfully structured and contractually agreed.

Working Hours – A Major Legal Risk

Labour law limits:

• Daily working hours
• Weekly working hours
• Mandatory weekly off
• Overtime compensation

In remote setups, employees often work beyond office hours without proper tracking.

If overtime is not recorded or paid:

 The employer may face claims for unpaid wages.
 There can be penalties under labour law.
 It may lead to litigation.

Legal advice: Always define working hours clearly in writing and track attendance digitally.

 

 Employer’s Responsibility for Safety

Under the Occupational Safety Code, employers must ensure safety and health of employees.

Now the practical question is:

Does this responsibility extend to the employee’s home?

The law is not very clear yet. However, from a precautionary legal approach:

• Employers should issue WFH safety guidelines.
• Provide ergonomic advice.
• Clarify responsibilities in policy documents.

Courts may interpret employer responsibility broadly in future disputes.

 Social Security Obligations Continue

Under the Social Security Code:

• PF contributions remain mandatory.
• ESI rules apply where applicable.
• Fixed-term employees are entitled to benefits.

WFH does not remove statutory benefits.

If a company stops contributions assuming “remote work is different,” it may lead to serious legal consequences.

Why a Written WFH Policy Is Legally Important

Every employer should have:

·     Clear working hours

·     Overtime rules

·      Leave integration

·      Confidentiality clause

·      Data protection clause

·      Reimbursement policy

·      Jurisdiction clause

A written policy reduces ambiguity and strengthens the employer’s legal defence.

 Other Legal Risks in WFH

• Sexual harassment complaints during virtual meetings
• Data breach liability
• Employee working from another state creating jurisdiction issues
• Misclassification of employee as consultant

These issues are becoming more common in remote work disputes.

 Legal View

Work From Home is legally valid under India’s new labour framework.

However:

 Rights of employees remain unchanged.
 Employer obligations remain intact.
 Compliance responsibilities continue fully.

WFH should not be treated as an informal arrangement. It should be treated as a structured employment model backed by clear documentation and compliance systems.

In labour law, the principle is simple:

Changing the location of work does not change the protection of law.