Aimed at accelerating growth, the government is planning a replacement labour legislation that might merge 44 labour laws under 4 categories
- Code On wages
- Code on Social security
- Code on Industrial relations
- Code on Occupational Safety, Welfare & Working conditions
Code on Wages
The planned Code on wages, 2017 intends to merge, simplify and rationalise the relevant provisions of the following four central labour enactments about wages, namely: –
- The Payment of Wages Act, 1936;
- The Minimum Wages Act, 1948;
- The Payment of Bonus Act, 1965; and
- The Equal Remuneration Act, 1976.
New Wage Code 2019:Key High points
1. Employee meaning includes Supervisory, Administrative and Managerial employees too
2. 24000 ceiling for employee definition liquefied
3. Schedule Employment stopped Thus,now almost everyone are going to be covered under the definition of Employee
4. OT double of normal wages VS current practice of dual of Basic + DA
5. Unity of Employees for OT required
6. there will be a National Floor wage. No national to own MW
7. F&F payment within 2 days after reliving
8. Inspector Vs Inspector-cum-Facilitator. Optional role to Employer and Workers
9. Related Rules and Implementation date is pending. we’d like to attend.
10. Digital compliance improved
11. Basic + DA must be min 50% of gross wages
12. Wages paid in a similar way can’t be moderately 15% of the Gross wages
13. Bonus shall be valid to all or any though the essential + DA exceeds 21000. got to expect the principles for more clarity.
14. there’s no gender perception during this code.
15. Faith for harassment stands as disqualification for Bonus applicability.
16. Web based inspection process introduced
17. Employee and Worker defined separately
18. Electronic payments encouraged
19. Penalties will increase 10x
20. Now even an Employee and union can file a complaint against an organization. Earlier only the Inspector had this right.
21. Minimum Wages = Basic + DA + Retention Allow (E.g. – Sugar Mills)
22. Minimum Wages are going to be revised every 5 years by Govt. Review revisions of DA will continue because it is
23. Deductions from wages to be only as per prescription of law. No other deductions are going to be permitted.
24. All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages within the checking account of the worker or by the electronic mode:
25.There shall be paid to each employee, drawing wages not beyond such amount per menses, as determined by notification, by the acceptable Government, by his employer, who has put in a minimum of thirty days add an accounting year, an annual minimum bonus calculated at the speed of eight and one-third per cent. of the wages earned by the worker or 100 rupees, whichever is higher whether or not the employer has any allocable surplus during the preceding accounting year.
26. All amounts payable to an employee by way of bonus under this Code shall be paid by believing it within the checking account of the worker by his employer within a period of eight months from the close of the accounting year:
27. (1) Any employer who— (a) pays to any employee but the measure thanks to such employee under the provisions of this Code shall be punishable with fine which can reach fifty thousand rupees;
28. having been sentenced of an offence under clause (a) is again found guilty of similar offence under this clause, within five years from the date of the commission of the primary or following offence, he shall, on the second and then the following commission of the offence, be punishable with sentence for a term which can reach three months or with fine which can reach one lakh rupees, or with both;
29. breaks the other provision of this Code or any rule made or order made or issued thereunder shall be punishable with fine which can reach twenty thousand rupees;
30. having been convicted of an offence under clause (c) is again found guilty of similar offence under this clause, within five years from the date of the commission of the primary or following offence, he shall, on the second and therefore the subsequent commission of the offence under this clause, be punishable with imprisonment for a term which can reach one month or with fine which can reach forty thousand rupees, or with both
31. for the offences of non-maintenance or improper maintenance of records within the establishment, the employer shall be punishable with fine which can reach ten thousand.
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