At Simpliance, we continuously strive to give you the most accurate and latest information on Labour laws across India. As part of this endeavor we bring to you the latest revisions and reforms in Labour Laws which are going through a complete makeover.

These initiatives by the Central and State Governments are expected to enhance ease of doing business & generate jobs. Simpliance is geared up to provide all the support and information you need to navigate through this revolution, one of the many our country is undergoing currently. Keep watching this space for more news.

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Code On Wages - 2019

The Code on Wages Bill subsumes four acts viz.

  • Minimum Wages Act, 1948
  • Payment of Wages Act, 1936
  • Equal Remuneration Act, 1976
  • Payment of Bonus Act, 1965

The code gives common definitions for all acts mentioned above and the effective sections have been merged for easy compliance management.

The subsequent rules which will complement the code have not yet been released. These rules will have the forms and compliances, which will be common across the acts.

Definitions
  • Employee definition has been amended to include Managers, Supervisors and Administrative persons.
  • No discrimination among male, female and transgender employees on the grounds of sex in the matter of wages.
  • Disputes to be decided by the authority notified.
Minimum Wages
  • The minimum wages for different Scheduled Employments will be abolished. There may be one common minimum wage for all employments which will also include previously not included employments.
  • The Central Government shall fix floor wage taking into account minimum living standards of a worker and in this regard different floor wage may be fixed for different geographical areas. The minimum rates of wages fixed by the Central/State Government shall not be less than the floor wage and if the minimum rates of wages fixed by the Central/State Government earlier is more than the floor wage, then, the Central/State Government shall not reduce such minimum rates of wages fixed by it earlier.
Payment of Wages
  • Wages will be deposited in the bank account of the employees, electronically or by cheque. Wages can be paid in cash, up to an amount which will be notified by the appropriate government.
  • Payment of wages has been made applicable to all class of establishments and employees. Previously only employees earning less than INR 24,000 per month were covered and establishments defined or notified were covered.
Equal Remuneration
  • The Act has been summarized in the code, there are no changes to the provisions.
Payment of Bonus
  • Only employees earning monthly salaries below the amount notified by the appropriate Government will be eligible for bonus.
  • An employee will be disqualified for bonus if he/she is dismissed from service on conviction of sexual harassment.
  • Bonus shall be paid by crediting the sum eligible in the bank account of the employee.
  • Bonus linked to productivity has been discontinued. Performance based bonus without ceiling limit has been introduced, rules are yet to be prescribed.


Labour Code On Social Security and Welfare

Ministry Of Labour and Employment has prepared a Preliminary draft of the Code on Social Security & Welfare by amalgamating all existing Labour Laws related to Social Security (Total 15 Labour Laws including Employees Provident Fund Act, Employees State Insurance Act, Maternity Benefit Act, Payment of Gratuity Act, Employees Compensation Act, Unorganised Social Security Act and various Welfare Cess / Fund Acts).


Labour Code On Industrial Relations

Code on Industrial Relations were earlier drafted and put on the Website of the Ministry of Labour & Employment inviting comments of the stakeholders/public. These Codes are under consideration of the Government at present.


Labour Code On Occupational Safety, Health and Working Conditions

The Ministry of Labour and Employment has prepared a preliminary draft on Code on Occupational Safety, Health and Working Conditions, 2018, by amalgamating 13 labour laws relating to safety and health standards, health and working conditions, welfare provisions for the employees and leave and hours of work. Some important labour laws among the 13 include: The Factories Act, 1948; The Mines Act, 1952; The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; The Contract Labour (Regulation and Abolition) Act, 1970; The Inter-State Migrant workmen (Regulation of Employment and Conditions of Service) Act, 1979; Sales Promotion Employees (Condition of Service) Act, 1976.


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