Mkonnect_Update_The Ministry of Labour and Employment (MoLE) has issued the Draft Code on Wages (Central) Rules, 2020
- These rules shall extend to
the whole of India. The Code will subsume four labour laws i.e the Minimum
Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration
Act.
- After its enactment, all these four Acts would
be repealed. The Code universalized the provision 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 to workers below a
particular wage ceiling working in Scheduled Employments only.
- There are 12 definitions of
wages in different labour laws leading to litigation besides difficulty in
implementation. The definition has been simplified in the Code and is expected
to reduce litigation and also reduce compliance costs for employers.
- Further, the draft rules
provide for eight hours working day under the Code of Wages. The Code provides
that the floor wage will be computed based on minimum living conditions which
would benefit about 50 crore workers across the country.
- The draft rules on the Code
would be open for public feedback for 45 days from July 7, 2019, the day when
the labour ministry notified those in the gazette.
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