Code on Wages, 2019
Context:
The Code on Wages, 2019, has been highlighted as a key reform to safeguard worker interests, induce economic growth, and empower women.
It amalgamates 4 existing wage and payment-related labour laws to streamline regulations and ensure universal wage protection.
The Code replaces and subsumes the following four central labour acts:
Key Provisions & Provisions:
Universal Minimum Wage: Section 5 extends the statutory right to minimum wages to all employees in both organized and unorganized sectors
Floor Wage: The Central Government will fix a floor wage based on minimum living standards.
State governments cannot fix minimum wages lower than this floor wage.
Working hours: The period of work shall not exceed 48 hours a week, if employee is working for less than 6 days a week.
The period of work shall not exceed 12 hours in a day in cases where flexibility is provided. This includes intervals for rest.
Gender Neutrality: The Code explicitly prohibits discrimination on the grounds of gender (including transgender identity) in recruitment and wages for same or similar work.
Timely payment of wages: Timely payment of wages and un-authorized deductions from wages applicable to all employees irrespective of the wage ceiling.
Overtime & Payment: Overtime must be paid at twice the normal rate.
Wages must be paid within two working days in cases of resignation or termination.
Limitation Period: The period for filing claims by an employee has been extended from the earlier 6 months-2 years to 3 years. years to 3 years.