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India: Central Government enacts Code on Wages as States publish the Draft Rules under New Labour Codes

In exercise of the powers conferred by section 67 (2)(s) and 67(2)(t) (to the extent they relate to the Central Advisory Board) of the Code on Wages, 2019 (“Code on Wages“) and in supersession of the Minimum Wages (Central Advisory Board) Rules, 2011, and the provisions of the Minimum Wages (Central) Rules, 1950 in so far as they relate to sections 7 and 9 (to the extent they relate to the Central Government) and section 8 of Minimum Wages Act, 1948, except as respects things done or omitted to be done before such supersession, the Central Government has enacted the Code on Wages (Central Advisory Board) Rules, 2021 (“Central Advisory Board Rules“).

The Central Advisory Board Rules provides for: (a) constitution of the Central Advisory Board; (b) certain job functions which the Central Advisory Board is required to perform; (c) the quorum for conducting meetings of the Central Advisory Board; (d) disqualifications from being a member of the Central Advisory Board; (e) manner in which business decisions are to be made by the Central Advisory Board.

Under the Code on Wages, the State Governments are required to formulate their respective State rules in line with the provisions of the Code on Wages. The Government of Karnataka has formulated the Code on Wages Karnataka Rules, 2021; the Government of Bihar has formulated the Code on Wages (Bihar) Rules, 2021 and the Government of Uttar Pradesh has formulated the Uttar Pradesh Code on Wages Rules, 2021, in line with the provisions of the Code on Wages. All the above-mentioned rules are still in the draft stage and have not been finalised. The respective Governments have invited suggestions/comments from all stakeholders to the abovementioned rules within a stipulated time period. After due consideration of such comments, the respective rules will be finalised and brought into effect.

Under the Code on Social Security, 2020 (“Social Security Code“), the State Governments are required to formulate their respective State rules in line with the provisions of the Social Security Code. The Government of Bihar has published the Code on Social Security (Bihar) Rules, 2021 and the Government of Uttar Pradesh has published the Uttar Pradesh Code on Social Security Rules, 2021. The abovementioned rules are currently in the draft stage and the State Governments have invited comments on it from all stakeholders within a stipulated time. After due consideration of such comments/suggestions the abovementioned rules will be finalised and brought into effect.

The State Government of Madhya Pradesh has published the Madhya Pradesh (Industrial Relations) Rules 2021 (“MP Rules“) under the Industrial Relations Code, 2020. The MP Rules are currently in the draft stage and the Madhya Pradesh Government has invited comments/suggestions from all stakeholders within a stipulated time period. Basis such comments and suggestions, the Government will finalise the MP Rules.

 

 

For more information on these articles or any other issues involving labour and employment matters in India, please contact Avik Biswas (Partner) of IndusLaw at avik.biswas@induslaw.com or visit www.induslaw.com.