The Code on Wages
Bill, 2019
Passed by Lok-Sabha dated 30th July 2019.
The Bill was
introduced in last Lok Sabha on 10 August 2017 and was referred to
Parliamentary Standing Committee which submitted its Report on 18th December
2018. Out of 24 recommendations
made by standing committee, 17 were
accepted by the government.
Overview:
1. It is a
historic Bill which aims to transform the old and obsolete labour laws into
more accountable and transparent ones which is need of the hour.
2. Presently
17 Labour laws are more than 50 years old and some of them even belong to the pre-independence era. These laws required changes.
3. A draft
of Wage Code was made available in public domain through Ministry’s website.
4.
The Code on Wages Bill, 2019 subsumes relevant provisions of :
a. The Minimum
Wages Act, 1948,
b. The Payment
of Wages Act, 1936,
c. The Payment
of Bonus Act, 1965 and
d. The Equal
Remuneration Act, 1976.
Key Points:
1. The Code
ensures minimum wages along with timely payment of wages to all the employees
and workers.
2. Many
unorganized sector workers like agricultural workers, painters, persons working
in restaurants and dhabas, chowkidars etc. who were out of the ambit of minimum
wages will get legislative protection of minimum wages after the bill becomes
an Act.
3. in the
bill that employees getting monthly salary shall get the salary by 7th of next
month, those working on weekly basis shall get the salary on last day of the
week and daily wagers should get it on the same day.
The salient features of the Code are as
following:
1.
The Code on Wage universalizes the provisions of minimum wages and timely
payment of wages to all employees irrespective of the sector and wage ceiling.
2.
Ensure that:
a)
"Right to Sustenance" for every worker and intends to increase the
legislative protection of minimum wage from existing about 40% to 100%
workforce.’
b)
every worker gets minimum wage which will also be accompanied by increase in
the purchasing power of the worker thereby giving fillip to growth in the
economy
3.
Introduction of statutory Floor Wage to be computed based on minimum living
conditions, will extend qualitative living conditions across the country to
about 50 crore workers.
4.
the states to notify payment of wages to the workers through digital mode.
5.
The definition of wages in the different Labour
Laws has been simplified and is
expected to reduce litigation and will entail at lesser cost of compliance for
an employer.
6.
The number of registers, returns, forms etc., not only can be electronically
filed and maintained, but it is envisaged that through rules, not more than one
template will be prescribed.
7.
The methodology to fix the minimum wages has been simplified and rationalized
by doing away with type of employment as one of the criteria for fixation of
minimum wage.
8.
Many changes have been introduced in the inspection regimes including web based
randomised computerised inspection scheme, jurisdiction-free inspections,
calling of information electronically for inspection, composition of fines etc.
9. To protect the interest of the workers,
the limitation period has been raised to 3 years and made uniform for filing
claims for minimum wages, bonus, equal remuneration etc., as against existing
varying period between 6 months to 2 years.
Will this bill covers interns and probationary period employees
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