The following policy changes were introduced by the Expenditure Department of the Finance Ministry after implementing the new Labor Code.

If the contractors fail to pay the workers employed under their contracts in any ministry, government department, private firm, or any government establishment, then these contractors shall be blacklisted. In no case shall these contractors be allowed to work in any department.

On top of timely payments, the provision of social security to the contract workers is another important issue. The firms failing to meet both requirements may face restrictions of three years from carrying out business with the government departments.

According to directives issued by the Ministry of Finance, workers working as daily wage laborers must be paid immediately after their shift ends. Weekly workers must be paid before the end of the week, and fortnightly workers must be paid within two days of the end of their 15-day shift.

Workers working on monthly wages must be paid within seven days of the end of the month. All wages will be paid via bank transfer or digital means. Contract firms must electronically report the payment to the relevant department or ministry.

Before hiring a contract worker, the ministry or government department must ensure that there are sufficient funds to pay the workers. Under the new directives, if there is a delay in payment by the contractor, the original employer can pay the contract workers.