Friends, please find attached a copy of the Bill regarding the Code on Wages 2019 introduced in Lok Sabha today. The proposed legislation intends to amalgamate, simplify, and rationalize the relevant provisions of the following four central labor enactments relating to wages, namely:
(a) the Payment of Wages Act, 1936;
(b) the Minimum Wages Act, 1948;
(c) the Payment of Bonus Act, 1965; and
(d) the Equal Remuneration Act, 1976.
Salient Features of the Code on Wages, 2019
The salient features of the Code on Wages, 2019, inter alia, are as follows:
(a) It provides for all essential elements relating to wages, equal remuneration, its payment, and bonus.
(b) The provisions relating to wages shall be applicable to all employments covering both organized as well as unorganized sectors.
(c) The power to fix minimum wages continues to be vested in the Central Government as well as the State Government in their respective spheres.
(d) It enables the appropriate Government to determine the factors by which the minimum wages shall be fixed for different categories of employees. The factors shall be determined taking into account the skills required, the arduousness of the work assigned, geographical location of the workplace, and other aspects which the appropriate Government considers necessary.
(e) The provisions relating to timely payment of wages and authorized deductions from wages, which are presently applicable only in respect of employees drawing wages of twenty-four thousand rupees per month, shall be made applicable to all employees irrespective of wage ceiling. The appropriate Government may extend the coverage of such provisions to Government establishments also.
(f) It provides that the wages to employees may also be paid by cheque or through digital or electronic mode or by crediting it in the bank account of the employee. However, the appropriate Government may specify the industrial or other establishment, where the wages are to be paid only by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employee.
(g) It provides for a floor wage for different geographical areas so as to ensure that no State Government fixes the minimum wage below the floor wage notified for that area by the Central Government.
(h) In order to remove the arbitrariness and malpractices in inspection, it empowers the appropriate Government to appoint Inspectors-cum-Facilitators in the place of Inspectors, who would supply information and advise the employers and workers.
(i) It empowers the appropriate Government to determine the ceiling of wage limit for the purpose of eligibility of bonus and calculation of bonus.
(j) In place of a number of authorities at multiple levels, it empowers the appropriate Government to appoint one or more authorities to hear and decide the claims under the proposed legislation.
(k) It enables the appropriate Government to establish an appellate authority to hear appeals for speedy, cheaper, and efficient redressal of grievances and settlement of claims.
(l) It provides for graded penalties for different types of contraventions of the provisions of the proposed legislation.
(m) It provides that the Inspector-cum-Facilitator shall give an opportunity to the employer before the initiation of prosecution proceedings in cases of contravention, so as to comply with the provisions of the proposed legislation. However, in case of repetition of the contravention within a period of five years, such opportunity shall not be provided.
(n) It provides for the appointment of officers not below the rank of Under Secretary to the Government of India or an officer of equivalent level in the State Government to dispose of cases punishable only with a fine up to fifty thousand rupees, so as to reduce the burden on the subordinate judiciary.
(o) It provides for the compounding of those offenses which are not punishable with imprisonment.
(p) It provides that where a claim has been filed for non-payment of remuneration or bonus or less payment of wages or bonus or on account of making deductions not authorized by the proposed legislation, the burden shall be on the employer to prove that the said dues have been paid to the employee.
(q) It enables the appropriate Government to constitute Advisory Boards at Central and State levels to advise the Central Government and the State Governments, respectively, on matters relating to wages, women employment, etc.
(r) The period of limitation for filing of claims by a worker has been enhanced to three years, as against the existing time period varying from six months to two years, to provide a worker more time to settle his claims.
From India, Malappuram
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1446(a) the Payment of Wages Act, 1936;
(b) the Minimum Wages Act, 1948;
(c) the Payment of Bonus Act, 1965; and
(d) the Equal Remuneration Act, 1976.
Salient Features of the Code on Wages, 2019
The salient features of the Code on Wages, 2019, inter alia, are as follows:
(a) It provides for all essential elements relating to wages, equal remuneration, its payment, and bonus.
(b) The provisions relating to wages shall be applicable to all employments covering both organized as well as unorganized sectors.
(c) The power to fix minimum wages continues to be vested in the Central Government as well as the State Government in their respective spheres.
(d) It enables the appropriate Government to determine the factors by which the minimum wages shall be fixed for different categories of employees. The factors shall be determined taking into account the skills required, the arduousness of the work assigned, geographical location of the workplace, and other aspects which the appropriate Government considers necessary.
(e) The provisions relating to timely payment of wages and authorized deductions from wages, which are presently applicable only in respect of employees drawing wages of twenty-four thousand rupees per month, shall be made applicable to all employees irrespective of wage ceiling. The appropriate Government may extend the coverage of such provisions to Government establishments also.
(f) It provides that the wages to employees may also be paid by cheque or through digital or electronic mode or by crediting it in the bank account of the employee. However, the appropriate Government may specify the industrial or other establishment, where the wages are to be paid only by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employee.
(g) It provides for a floor wage for different geographical areas so as to ensure that no State Government fixes the minimum wage below the floor wage notified for that area by the Central Government.
(h) In order to remove the arbitrariness and malpractices in inspection, it empowers the appropriate Government to appoint Inspectors-cum-Facilitators in the place of Inspectors, who would supply information and advise the employers and workers.
(i) It empowers the appropriate Government to determine the ceiling of wage limit for the purpose of eligibility of bonus and calculation of bonus.
(j) In place of a number of authorities at multiple levels, it empowers the appropriate Government to appoint one or more authorities to hear and decide the claims under the proposed legislation.
(k) It enables the appropriate Government to establish an appellate authority to hear appeals for speedy, cheaper, and efficient redressal of grievances and settlement of claims.
(l) It provides for graded penalties for different types of contraventions of the provisions of the proposed legislation.
(m) It provides that the Inspector-cum-Facilitator shall give an opportunity to the employer before the initiation of prosecution proceedings in cases of contravention, so as to comply with the provisions of the proposed legislation. However, in case of repetition of the contravention within a period of five years, such opportunity shall not be provided.
(n) It provides for the appointment of officers not below the rank of Under Secretary to the Government of India or an officer of equivalent level in the State Government to dispose of cases punishable only with a fine up to fifty thousand rupees, so as to reduce the burden on the subordinate judiciary.
(o) It provides for the compounding of those offenses which are not punishable with imprisonment.
(p) It provides that where a claim has been filed for non-payment of remuneration or bonus or less payment of wages or bonus or on account of making deductions not authorized by the proposed legislation, the burden shall be on the employer to prove that the said dues have been paid to the employee.
(q) It enables the appropriate Government to constitute Advisory Boards at Central and State levels to advise the Central Government and the State Governments, respectively, on matters relating to wages, women employment, etc.
(r) The period of limitation for filing of claims by a worker has been enhanced to three years, as against the existing time period varying from six months to two years, to provide a worker more time to settle his claims.
From India, Malappuram
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Lok Sabha passed the Bill on 30th July 2019. Now Rajya Sabha has to pass the same.
From India, Malappuram
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From India, Malappuram
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Dear sir,
Now that both houses have passed the said Code, the President's assent was given on 8.8.2019. The effective date has not yet been notified. Please correct me if this information is incorrect or advise me with a copy of the Gazette notification if it has already been announced.
From India, New Delhi
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Now that both houses have passed the said Code, the President's assent was given on 8.8.2019. The effective date has not yet been notified. Please correct me if this information is incorrect or advise me with a copy of the Gazette notification if it has already been announced.
From India, New Delhi
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Dear colleague,
Please read carefully the Code on Wages 2019. The Act is not applicable today as the date of enforcement has not been announced by the Government so far. It will be officially published in the Gazette, and the date of enforcement will be included therein forthwith.
Regards,
RDS Yadav
Labour Law Adviser
NAVTYARANG HR SERVICES
Email: navtaranghrs@gmail.com
From India, New Delhi
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Please read carefully the Code on Wages 2019. The Act is not applicable today as the date of enforcement has not been announced by the Government so far. It will be officially published in the Gazette, and the date of enforcement will be included therein forthwith.
Regards,
RDS Yadav
Labour Law Adviser
NAVTYARANG HR SERVICES
Email: navtaranghrs@gmail.com
From India, New Delhi
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Notifiaction The Code On Wages - 2019.pdf