New Delhi, Nov. 24 -- India's newly introduced labour codes are set to bring major changes in areas such as employee benefits, working conditions, hiring models and enforcement mechanisms, highlighted a report by Ernst & Young (EY).

According to the report, a significant change is the new system of categorising employees and workers. The category of "employee" now covers all workers regardless of role, level or salary, while the term "worker" applies to those engaged in manual, skilled, technical, operational, clerical or supervisory functions.

However, supervisory staff earning more than Rs 18,000 per month are excluded from the worker category.

This new categorisation has implications for overtime, leave encashment, contract labour, ...