The Code on Wages Bill 2017
As part of labour law reforms, the Government has undertaken the
exercise of rationalisation of the 38 Labour Acts by framing 4 labour codes viz
Code on Wages, Code on Industrial Relations, Code on Social Security and Code
on occupational safety, health and working conditions.
1. The
Code on Wages Bill 2017 has been introduced in Lok Sabha on 10.08.2017 and
it subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the Payment of
Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration
Act, 1976. After the enactment of the Code on Wages, all these four Acts will
get repealed. The Codification of the Labour Laws will remove the multiplicity
of definitions and authorities leading to ease of compliance without
compromising wage security and social security to the workers.
2.
At present, the provisions of the Minimum Wages Act and the Payment of Wages
Act do not cover substantial number of workers, as the applicability of both
these Acts is restricted to the Scheduled Employments / Establishments.
However, the new Code on Wages will ensure minimum wages to one and all and
timely payment of wages to all employees irrespective of the sector of
employment without any wage ceiling.
3.
A concept of statutory National Minimum Wage for different geographical areas
has been introduced. It will ensure that no State Government fixes the minimum
wage below the National Minimum Wages for that particular area as notified by
the Central Government.
4.
The proposed payment of wages through cheque or digital/ electronic mode would
not only promote digitization but also extend wage and social security to the
worker. Provision of an Appellate Authority has been made between the Claim
Authority and the Judicial Forum which will lead to speedy, cheaper and
efficient redressal of grievances and settlement of claims
5.
Penalties for different types of violations under this Code have been
rationalized with the amount of fines varying as per the gravity of violations
and repeat of the offences. Provision of compounding of offences has been made
for those which are not punishable by a penalty of imprisonment.
6.
Recently, some news reports have been published regarding the
fixation of minimum wage as Rs. 18000/- per month by the Central Government. It
is clarified that the Central Government has not fixed or mentioned any amount
as national minimum wage" in the Code on Wages Bill 2017. The
apprehension that minimum wage of Rs. 18000/- per month has been fixed for all
employees is, thus incorrect, false and baseless. The minimum wages will vary
from place to place depending upon skill required, arduousness of the work
assigned and geographical location.
7.
Further, the Code on Wages Bill 2017, in the clause 9 (3), clearly
states that the Central Government, before fixing the national minimum wage,
may obtain the advice of the Central Advisory Board, having representatives
from employers and employees. Therefore the Code provide for a consultative
mechanism before determining the national minimum wage.
8.
Some reports have also been appearing in the media regarding the revised
methodology for calculation of minimum wages by enhancing the units from three
to six. It was purely a demand raised by Trade Unions in the recent meeting of
the Central Advisory Board on Minimum Wages. However it is clarified that such
proposal is not part of the Code on Wages Bill.
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