Code on Wages 2019 - Salient Features

 Code on Wages 2019 - Salient Features:

  • It provides for all essential elements relating to wages, equal remuneration, its payment and bonus
  • The power to fix minimum wages continues to be vested in the Central Government as well as the state State Government in their respective fields
  • The provisions relating to wages shall be applicable to all employments covering both organized and well as un organized sectors
  • It enables the appropriate Government to determine  the factors be which the minimum wages shall be fixed for different category of employees. The factors shall be determined taking into account the skills required, the arduousness of the work assigned, geographical location of the workplace and other aspects  which appropriate Government considers necessary
  • It provides that the wages to employees may also be paid by cheque or through digital or electronic mode or by the crediting it in the bank account of the employee however the appropriate government may specify the industrial or other establishment where the wages are to be paid only by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employees

  • The provisions relating to timely payment of wages and authorised deductions from wages which are presently applicable only in respect of employees drawing wages of 24000 rupees per month, shall be made applicable to all employees irrespective of the wage ceiling. The appropriate government may extend the coverage of such provisions to the government establishments also
  • In order to remove the arbitrariness in malpractices in inspection, it empowers the appropriate government to appoint inspector cum facilitators in the place of inspectors who would supply information and advice to employers and workers
  • It provides for floor wages for different geographical areas so as to ensure that no state government fixes the minimum wage below the floor was notified for the area by the central government
  • It empowers the appropriate government to determine the ceiling of wage limit for the purpose of eligibility of bonus and calculation of bonus
  • The period of limitation for filing of claims by worker has been enhanced to three years, as against the existing time period varying from 6 months to 2 years to provide a worker more time to settle his claims
  • In the place of number of authorities at multiple levels, it empowers the appropriate government to appoint one or more authorities to hear and decide the claims under the proposed legislation
  • It enables the appropriate government to constitute advisory boards at Central and state level to advise the central government and the state governments, respectively, on matters relating to wages, women employment etc
  • It enables the  appropriate government to establish an appellate authority to hear appeals for speedy, cheaper and efficient redressal of grievances and settlement of claims
  • It provides that a claim has been filed for non payment of remuneration or bonus or less payment of wages or bonus or on account of making deduction not authorised by the proposed legislation, the burden shall be on the employer to prove that the said dues have been paid to the employee
  • It provides for graded penalty for different types of contraventions of the provisions of the proposed legislation
  • It provides for compounding of those offences which are not punishable with imprisonment
  • It provides that the inspector cum facilitator shall give an opportunity to the employer before initiation of prosecution proceedings in case of contravention, so as to comply with the provisions of the proposed legislation. However in case of repetition of the contravention within a period of 5 years such opportunity shall not be provided
  • It provides for the appointment of officers not below the rank of under secretary to the Government of India or an officer of equivalent level in the state government to dispose of cases punishable only with fine upto 50000 rupees, so as to reduce the burden on subordinate judiciary


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