Monday, September 9, 2019

THE CODE ON WAGES, 2019: New Labour Law Part 1


THE CODE ON WAGES, 2019

For making the functioning of labor law in an easier way govt. of India take some efforts. First step in this area is THE CODE ON WAGES, 2019. An Act to amend and consolidate the laws relating to wages and bonus and matters connected there with or incidental thereto. The following Act of Parliament received the assent of the President on the 8th August, 2019. This act combine 4 labor law (1) Payment of wages act 1936, (2)Payment of Minimum wages act 1948,(3) Payment of bonus act1965, (4)Equal remuneration act 1976 into one code on wages, 2019.

Some important point of this act is-
(1) This Act may be called the Code on Wages, 2019.
(2) It extends to the whole of India.

Definitions
"wages" means all remuneration whether by way of salaries, allowances or
otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes,—
(i) basic pay;
(ii) dearness allowance; and
(iii) retaining allowance, if any,
          but does not include––
(a)  any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;
(c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment;
(k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment.

"worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes—
(i) working journalists as defined in clause (f ) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; and
(ii) sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person––
(a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the
Navy Act, 1957; or
(b) who is employed in the police service or as an officer or other employee
of a prison; or
(c) who is employed mainly in a managerial or administrative capacity; or
(d) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand rupees per month or an amount as may be notified by the Central Government from time to time.

Payment of minimum rate of wages
No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.

Fixation of minimum wages
The appropriate Government shall fix the minimum rate of wages payable to employees
(a) for time work; or
(b) for piece work.
The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely:––
(i) by the hour; or
(ii) by the day; or
(iii) by the month.

Components of minimum wages
 (1) Any minimum rate of wages fixed or revised by the appropriate Government under section 8 may consist of––
(a) a basic rate of wages and an allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as "cost of living allowance"); or
(b) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorised; or
(c) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.
(2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rate shall be computed by such authority, as the appropriate Government may by notification, appoint, at such intervals and in accordance with such directions as may be specified or given by the appropriate Government from time to time.

Procedure for fixing and revising minimum wages
(1) In fixing minimum rates of wages for the first time or in revising minimum rates of wages under this Code, the appropriate Government shall either—
(a) appoint as many committees as it considers necessary to hold enquiries and recommend in respect of such fixation or revision, as the case may be; or
(b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration.
(2) Every committee appointed by the appropriate Government under clause (a) of sub-section (1) shall consist of persons––
(a) representing employers;
(b) representing employees which shall be equal in number of the members
specified in clause (a); and
(c) independent persons, not exceeding one-third of the total members of the
committee.
(3) After considering the recommendation of the committee appointed under clause (a) of sub-section (1) or, as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall by notification fix, or as the case may be, revise the minimum rates of wages and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue: Provided that where the appropriate Government proposes to revise the minimum rates of wages in the manner specified in clause (b) of sub-section (1), it shall also consult concerned Advisory Board constituted under section 42.
(4) The appropriate Government shall review or revise minimum rates of wages ordinarily
at an interval not exceeding five years.


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