Code on Wages Bill 2019

PIB press release dated 30th July, 2019

The Lok Sabha today passed The Code on Wages Bill, 2019. While opening the discussion for consideration and passing of the Bill,  Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar said that 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. As many as 17 present labour laws are more than 50 years old and some of them even belong to pre-independence era.

Among the four Acts being subsumed in The Code on Wages Bill, The Payment of Wages Act, 1936 belongs to pre-independence era and The Minimum Wages Act 1948 is also 71 years old. The Payment of Bonus Act, 1965 and The Equal Remuneration Act, 1976 are also being subsumed in the Code. 

He further said that wide consultations were held with trade unions, employers and State governments and tripartite consultations were held on 10^th March, 2015 and 13^th April, 2015. A draft of Wage Code was made available in public domain through Ministry’s website. Many persons gave their valuable suggestions. The Bill was introduced in last Lok Sabha on 10 August, 2017 and was referred to Parliamentary Standing Committee which submitted its Report on 18^th December 2018. Out of 24 recommendations made by standing committee, 17 were accepted by government.

He further said that the Code ensures minimum wages along with timely payment of wages to all the employees and workers. 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. It has been ensured in the bill that employees getting monthly salary shall get the salary by 7^th 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.

He expressed hope that The Code on Wages will prove to be a milestone and give respectable life to 50 crore unorganized sector workers. The Minister responded to the debate in detail and thanked all the respected members for cooperation in passing the Bill.

The salient features of the Code are as following:

• 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. At present, the provisions of both Minimum Wages Act and Payment of Wages Act apply on workers below a particular wage ceiling working in Scheduled Employments only. This would ensure "Right to Sustenance" for every worker and intends to increase the legislative protection of minimum wage from existing about 40% to 100% workforce. This would ensure that 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. 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. It is envisaged that the states to notify payment of wages to the workers through digital mode.

• There are 12 definitions of wages in the different Labour Laws leading to litigation besides difficulty in its implementation. The definition has been simplified and is expected to reduce litigation and will entail at lesser cost of compliance for an employer. An establishment will also be benefited as 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.

• At present, many of the states have multiple minimum wages. Through Code on Wages, the methodology to fix the minimum wages has been simplified and rationalised by doing away with type of employment as one of the criteria for fixation of minimum wage. The minimum wage fixation would primarily based on geography and skills. It will substantially reduce the number of minimum wages in the country from existing more than 2000 rates of minimum wages.

• 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. All these changes will be conducive for enforcement of labour laws with transparency and accountability.

 • There were instances that due to smaller limitation period, the claims of the workers could not be raised. 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.

• It can be said that a historical step for ensuring statutory protection for minimum wage and timely payment of wage to 50 crore worker in the country has been taken through the Code on Wages besides promoting ease of living and ease of doing business.

Code on Occupational Safety, Health & Working Conditions

PIB press release dated 23rd July, 2019

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar introduced The Code on Occupational Safety, Health and Working Conditions Bill, 2019 in Lok Sabha today to amend the laws regulating the Occupational Safety, Health and Working Conditions of the persons employed in an establishment. Shri Gangwar said that the proposed bill is being introduced after wide consultations with Trade Unions, employers and all the other stakeholders. 

Safety, Health, welfare and improved Working Conditions are pre-requisite for well being of the worker and also for economic growth of the country as healthy workforce of the country would be more productive and occurrence of less accidents and unforeseen incidents would be economically beneficial to the employers also.

With the ultimate aim of extending the safety and healthy working conditions to all workforce of the country, the Code enhances the ambit of provisions of safety, health, welfare and working conditions from existing about 9 major sectors to all establishments having 10 or more employees. The proposed Code enhances the coverage of workers manifold as it would be applicable to all establishments employing 10 or more workers, where any industry, trade, business, manufacture or occupation is carried on, including, IT establishments or establishments of service sector. Further the varying threshold of applicability has been made uniform at 10 workers for all establishments except mines and dock where the Code would be applicable even with 1 worker. In order to ensure wider coverage, the definitions of Working Journalists and Cine worker have also been modified to include workers employed in electronic media and all forms of audio visual production. Similarly, the definition of inter-state migrant worker has also been proposed to be modified to include those migrant workers who are being employed directly by the employer from other States without contractor or agent. This proposal would enhance the coverage of the safety, health and working conditions provisions manifold as compared to the present scenario.

Besides, extending the ambit of Occupational safety, Health and Working conditions to all sectors, other salient features of the Code on Occupational Safety, Health and Working Conditions are as under:

i. The Code provides basic broad legislative framework with enabling provisions for framing rules, regulations, standards, and bye-laws as per the requirements of different sectors which has Resulted in reduction of 622 sections to 134 sections in the Code. This would result in simple legislation with flexibility in changing the provisions in tune with emerging technologies and makes the legislation dynamic.

ii. The Bill proposes one registration for an establishment instead of multiple registrations. Presently 6 labour acts out of 13 provide for separate registration of the establishment. This will create a centralized data base and promote ease of doing business. At present, separate registration is required to be obtained under 6 Acts.

iii. Employer to provide free of cost annual health checks-up for employees above prescribed age for prescribed tests and for prescribed establishments. Increases productivity as it would be possible to detect diseases. Coverage of employees above a certain age for health check-up would promote inclusion.

iv. First time statutory provision to issue appointment letter to every employee of the establishment with the minimum information prescribed by the appropriate government. The provision of appointment letter will result in formalization of employment and prevent exploitation of the worker.

v. The multiple committees under five labour Acts have been substituted by one National Occupational Safety and Health Advisory Board. The National Board is of tripartite nature and has representation from trade unions, employer associations, and State governments. This will result in reduction in multiplicity of bodies/committees in various Acts and simplified and coordinated policy-making.

vi. Enabling provision for constituting a bi-partite Safety Committee in any class of establishment by appropriate government. It will promote safe and healthy working conditions in an establishment. The participatory nature of the committee will encourage implementation of decisions taken by the management.

vii. A part of the penalty for contravention of provisions relating to duties of employer leading to death or serious bodily injury to any person may be given to the victim or the legal heirs of the victim by the Court. The part of penalty would help in rehabilitation of injured worker or would provide financial support to the family of deceased.

viii. Presently, different applicability thresholds exists for welfare provisions like crèche, canteen, first aid, welfare officer etc in different Acts. The proposed Code has envisaged uniform threshold for welfare provisions for all establishment as far as practicably feasible.

ix. Women permitted to work beyond 7 PM and before 6 AM subject to the safety, holidays, working hours or any other condition as prescribed by appropriate government in respect of prescribed establishments. However, only after taking their consent for night work. This will promote gender equality and is in tune with demands from the various forums including international organizations as it leads to protective discrimination. Further, the condition of taking consent/ willingness of the women employee for night work would avoid any kind of misuse of the provision.

x. The provision of one license and one return in place of multiple licenses and returns in existing 13 labour laws subsumed in this Code to save time, resources and efforts of establishments.

From the above salient features of the Code, it is evident that the Occupational Safety, Health and Working Conditions has some unique new initiatives for both workers and employers. It promotes health, safety, welfare and better working conditions of workforce by enhancing the ambit of a dynamic legislation as compared to the existing sectoral approach limited to few sectors. Besides, it also drastically rationalises the compliance mechanism with one license, one registration and one return for the establishments under the ambit of the Code thereby saving resources and efforts of the employers. Thus it balances the requirements of worker and employer and is beneficial to both the constituents of the world of work.

The Code has been drafted after amalgamation, simplification and rationalisation of the relevant provisions of the 13 Central Labour Acts viz. The Factories Act, 1948;The Mines Act, 1952;The Dock Workers (Safety, Health and Welfare) Act, 1986 ;The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 -,The Plantations Labour Act, 1951; The Contract Labour (Regulation and Abolition) Act, 1970; The Inter-State Migrant workmen (Regulation of Employment and Conditions of Service) Act, 1979; The Working Journalist and other News Paper Employees (Conditions of Service and Misc. Provision) Act, 1955; The Working Journalist (Fixation of rates of wages) Act, 1958; The Motor Transport Workers Act, 1961; Sales Promotion Employees (Condition of Service) Act, 1976; The Beedi and Cigar Workers (Conditions of Employment)Act, 1966 and The Cine Workers and Cinema Theatre Workers Act, 1981. After the enactment of the Code, all these Acts being subsumed in the Code will be repealed.

Code on Wages Bill 2019

PIB press release dated 23rd July, 2019

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar introduced The Code on Wages Bill, 2019 in Lok Sabha today to amend and consolidate the laws relating to wages and bonus and matters connected therewith.

The Code on Wages Bill, 2019 subsumes relevant provisions of 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 salient features of the Code are as following:

• 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. At present, the provisions of both Minimum Wages Act and Payment of Wages Act apply on workers below a particular wage ceiling working in Scheduled Employments only. This would ensure "Right to Sustenance" for every worker and intends to increase the legislative protection of minimum wage from existing about 40% to 100% workforce. This would ensure that 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. 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. It is envisaged that the states to notify payment of wages to the workers through digital mode.

• There are 12 definitions of wages in the different Labour Laws leading to litigation besides difficulty in its implementation. The definition has been simplified and is expected to reduce litigation and will entail at lesser cost of compliance for an employer. An establishment will also be benefited as 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.

• At present, many of the states have multiple minimum wages. Through Code on Wages, the methodology to fix the minimum wages has been simplified and rationalised by doing away with type of employment as one of the criteria for fixation of minimum wage. The minimum wage fixation would primarily based on geography and skills. It will substantially reduce the number of minimum wages in the country from existing more than 2000 rates of minimum wages.

• 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. All these changes will be conducive for enforcement of labour laws with transparency and accountability.

 • There were instances that due to smaller limitation period, the claims of the workers could not be raised. 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.

• It can be said that a historical step for ensuring statutory protection for minimum wage and timely payment of wage to 50 crore worker in the country has been taken through the Code on Wages besides promoting ease of living and ease of doing business.

The Code on Wages Bill was earlier introduced in the Lok Sabha on 10^th August 2017 and was referred to Parliamentary Standing Committee which submitted its Report on 18^th December 2018. However, owing to dissolution of 16^th Lok Sabha, the Bill has lapsed. Therefore, a fresh Bill namely The Code on Wages Bill, 2019 has been drafted inter alia, after considering the recommendations of the Parliamentary Standing Committee and other suggestions of the stakeholders.

Code on Occupational Safety, Health and Working Conditions

PIB press release dated 10th July, 2019

Cabinet approves Code on Occupational Safety, Health and Working Conditions Bill, 2019

13 Central Labour Laws brought in ambit of New Code

Posted On: 10 JUL 2019 6:04PM by PIB Delhi

In the spirit of ‘Sabka Saath, Sabka Vikaas’ and ‘Sabka Vishwas’, the NDA Government led by Prime Minister Narendra Modi has been continuously working for the benefit of people from various walks of life. With this objective, the Union Cabinet chaired by Prime Minister Narendra Modi has approved for introduction of the Code on Occupational Safety, Health and Working Conditions Bill, 2019 in the Parliament. This proposal would enhance the coverage of the safety, health and working conditions provisions manifold as compared to the present scenario. The decision will enhance the coverage of the safety, health and working conditions provisions manifold as compared to the present scenario.

The New Code has been drafted after amalgamation, simplification and rationalisation of the relevant provisions of the 13 Central Labour Acts:

• The Factories Act, 1948;
• The Mines Act, 1952; The Dock Workers (Safety, Health and Welfare) Act, 1986;
• The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996;
• The Plantations Labour Act, 1951;
• The Contract Labour (Regulation and Abolition) Act, 1970;
• The Inter-State Migrant workmen (Regulation of Employment and Conditions of Service) Act, 1979;
• The Working Journalist and other Newspaper Employees (Conditions of Service and Misc. Provision) Act, 1955;
• The Working Journalist (Fixation of rates of wages) Act, 1958;
• The Motor Transport Workers Act, 1961;
• Sales Promotion Employees (Condition of Service) Act, 1976;
• The Beedi and Cigar Workers (Conditions of Employment) Act, 1966; and
• The Cine Workers and Cinema Theatre Workers Act, 1981. After the enactment of the Code, all these Acts being subsumed in the Code will be repealed.

Benefits

• Safety, Health, welfare and improved Working Conditions are pre-requisite for well-being of the worker and also for economic growth of the country as healthy workforce of the country would be more productive and occurrence of less accidents and unforeseen incidents would be economically beneficial to the employers also. With the ultimate aim of extending the safety and healthy working conditions to all workforce of the country, the Code enhances the ambit of provisions of safety, health, welfare and working conditions from existing about 9 major sectors to all establishments having 10 or more employees.

Maternity Benefit

The Ministry of Labour and Employment in the Govt. of India has vide its notification dated 29th January, 2019 amended Rule 16  of the Maternity Benefit (Mines & Circus) Rules, 1963.

The new Rule 16 reads as follows:

16.- (1) The employer of every mine & circus shall, on or before the 1st day of February in each year, upload unified annual return in Form X on the web portal of the Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year: 

Provided that during inspection, the inspector may require the production of accounts, books, registers and other documents maintained in electronic form or otherwise.

(2) If the employer of a mine or circus to which the Act applies sells, abandons or discontinues the working of the mine or circus, then, he shall, within one month of the date of such sale or abandonment or four months of the date of such discontinuance, as the case may be, upload online, on the web portal of the Central Government in the Ministry of Labour and Employment, a further unified return in Form X referred to in sub-rule (1) in respect of the period between the end of the preceding year and the date of the sale, abandonment or discontinuance.’.

What is unified annual return is not specified or defined anywhere, but the Labour Ministry has carried out similar amendments to 7 legislations.

It is not also clear from when it is effective, because the notification is dated 29th January, 2019 and it requires the establishment to file a return on or before 1st February every year. So it would be practically impossible to collate all the information and file the return in just one day!!!

The circus industry is more or less moribund across India, there are hardly any circuses left in town. So don't know what purpose this will serve to that sector. Mines hardly employ any women on their rolls so again the purpose of having a maternity benefit act for mine sector seems hardly to be a great idea. Better idea would have been to scrap this legislation altogether. 

Minimum Wages

The Ministry of Labour and Employment in the Govt. of India has vide its notification dated 29th January, 2019 amended Rule 21(4A)  of the Minimum Wages (Central) Rules, 1950.

The new Rule 21(4A) reads as follows:

4A.- Every employer shall, on or before the 1st day of February in each year, upload unified annual return in Form III on the web portal of the Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year: 

Provided that during inspection, the inspector may require the production of accounts, books, registers and other documents maintained in electronic form or otherwise."

What is unified annual return is not specified or defined anywhere, but the Labour Ministry has carried out similar amendments to 7 legislations.

It is not also clear from when it is effective, because the notification is dated 29th January, 2019 and it requires the establishment to file a return on or before 1st February every year. So it would be practically impossible to collate all the information and file the return in just one day!!!

Payment of Bonus

The Ministry of Labour and Employment in the Govt. of India has vide its notification dated 29th January, 2019 amended Rule 5 of the Payment of Bonus Rules, 1975.

The new Rule 5 reads as follows:

5. Annual return.- Every employer shall, on or before the 1st day of February in each year, upload unified annual return in Form D on the web portal of the Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year: 

Provided that during inspection, the inspector may require the production of accounts, books, registers and other documents maintained in electronic form or otherwise."

What is unified annual return is not specified or defined anywhere, but the Labour Ministry has carried out similar amendments to 7 legislations.

It is not also clear from when it is effective, because the notification is dated 29th January, 2019 and it requires the establishment to file a return on or before 1st February every year. So it would be practically impossible to collate all the information and file the return in just one day!!!