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India

India: Ministry of Labour and Employment notifies certain provisions of the Code on Wages, 2019

Published: © 28-01-2021

The Government of India attempted to consolidate 44 Central labour legislations into 4 comprehensive labour codes; (a) The Code on Wages, 2019 (“Code on Wages”); (b) the Occupational Safety, Health and Working Condition Code, 2020; (c) the Industrial Relations Code, 2020; and (d) the Code on Social Security, 2020. The Code on Wages subsumes 4 labour legislations: (a) the Payment of Wages Act, 1936; (b) the Minimum Wages Act, 1948; (c) the Payment of Bonus Act, 1965; and (d) the Equal Remuneration Act, 1976.

The Ministry of Labour and Employment vide a notification dated 18 December 2020, has notified and brought into immediate effect certain provisions of the Code on Wages. The following provisions have been brought into immediate effect:

• Sub-sections (1), (2), (3), (10) and (11) of section 42 of the Code on Wages (to the extent they relate to the Central Advisory Board).

Section 42 of Code on Wages pertains to the constitution of Central Advisory Board. It states that the Central government will constitute the Central Advisory Board and it will consist of persons to be nominated by the Central government representing employers and employees, independent persons, and five representatives of such State governments as may be nominated by the Central government. Additionally, one-third of the members will be women and a member will be appointed by the Central government as the chairperson of the board. It also states that the Central Advisory Board will advise the Central Government on issues related to fixation/revision of minimum wages, employment opportunities for women etc.

• Clauses (s) and (t) of sub-section (2) of section 67 of the Code on Wages (to the extent they relate to the Central Advisory Board).

The aforesaid provision pertains to the power of Central Government to make rules on the manner of regulating the procedure and term of office of members of the Central Advisory Board.

• Section 69 to the extent it relates to sections 7 and 9 of the Code on Wages (to the extent they relate to the Central Government) and section 8 of the Minimum Wages Act, 1948.

The above-mentioned provision repeals section 7, section 8 and section 9 of the Minimum Wages Act, 1948 which pertains to Advisory Board and Advisory Committee appointed by the Central Government under the Minimum Wages Act, 1948.