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Tuesday 30 July 2019

The Code on Wages Bill, 2019 Passed by Lok-Sabha


Image result for labor laws updateThe 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.


1 comment:

  1. Will this bill covers interns and probationary period employees

    ReplyDelete

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