Scribd Logo
Upload

Welcome to Scribd!

  • 79 views

    Code On Wages 2019 - Notes

    Uploaded by

    Anand Reddy
    The document summarizes the key changes introduced by the Code on Wages, 2019 in India. Some major changes include expanding the coverage of minimum wage laws to all employees regardless of salary and all employers. It introduces a uniform definition of wages that includes certain allowances. The definitions of employee and employer were also amended to include more categories of workers. Timelines for payment of wages were standardized and electronic maintenance of records is now allowed. Minimum wages will be determined based on geography and skills rather than type of employment. The code prohibits gender discrimination in wages and increases penalties for non-compliance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Code On Wages 2019 - Notes

    Uploaded by

    Anand Reddy
    79 views3 pages
    The document summarizes the key changes introduced by the Code on Wages, 2019 in India. Some major changes include expanding the coverage of minimum wage laws to all employees regardless of salary and all employers. It introduces a uniform definition of wages that includes certain allowances. The definitions of employee and employer were also amended to include more categories of workers. Timelines for payment of wages were standardized and electronic maintenance of records is now allowed. Minimum wages will be determined based on geography and skills rather than type of employment. The code prohibits gender discrimination in wages and increases penalties for non-compliance.

    Original Description:

    Code on wages 2019 - summary

    Original Title

    Code on wages 2019 - notes

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the key changes introduced by the Code on Wages, 2019 in India. Some major changes include expanding the coverage of minimum wage laws to all employees regardless of salary and all employers. It introduces a uniform definition of wages that includes certain allowances. The definitions of employee and employer were also amended to include more categories of workers. Timelines for payment of wages were standardized and electronic maintenance of records is now allowed. Minimum wages will be determined based on geography and skills rather than type of employment. The code prohibits gender discrimination in wages and increases penalties for non-compliance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    79 views3 pages

    Code On Wages 2019 - Notes

    Uploaded by

    Anand Reddy
    The document summarizes the key changes introduced by the Code on Wages, 2019 in India. Some major changes include expanding the coverage of minimum wage laws to all employees regardless of salary and all employers. It introduces a uniform definition of wages that includes certain allowances. The definitions of employee and employer were also amended to include more categories of workers. Timelines for payment of wages were standardized and electronic maintenance of records is now allowed. Minimum wages will be determined based on geography and skills rather than type of employment. The code prohibits gender discrimination in wages and increases penalties for non-compliance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Code on wages – 2019:

    1. Code is composed of four major laws:


    a. The Pmt of wages act, 1936
    b. The Pmt of minimum wages act, 1948
    c. The Pmt of bonus act, 1965
    d. The Equal remuneration act, 1976

    Major changes due to new code on wages, 2019:


    1. Coverage and applicability: Whole of India to all employees (ceiling of
    Rs.24000 is done away with) and all employers (unless exempted)
    2. Uniform definition of wages: (Basic + DA + Retaining allowance, the Code
    provides that in the event payments made to employees under other
    components exceed 50% of all remuneration payable as ‘wages’ under
    the Code, such excess amount shall be deemed as remuneration and will
    be considered as ‘wages’)
    3. Definition of employee (The definition of ‘Employee’ has been amended
    to include all category of employees including Managers, Supervisors,
    Administrative, Operational persons.)
    4. Definition of employer (contractor included)
    5. Time of payment of wages: Settlement period for monthly wages has
    been specified as on the 7th day of the succeeding month, as against
    10th day of the succeeding month.
    6. Termination, dismissal, resignation: Payment within 2 working days.
    7. Mode of payment: Wages to be deposited in the bank account of
    employees, electronically or by cheque. Wages can be paid in cash, only
    up to an amount notified by the Central Government.
    8. Registers can be electronically maintained.
    9. Minimum wage fixation has been universalized (for all types of
    employment) – based on geography and skills, not on type of
    employment.
    10.Concept of ‘Floor wage’ (Central govt.)
    11.Prohibits gender discrimination
    12.Overtime pay (not less than twice the normal rate of wages)
    13.Enforcement of labour laws with transparency (web based).
    14.Inspector cum facilitator (includes advisory role).
    15.Limitation period of claims by the employees has been raised to 3 yrs
    16.Offences and penalties:
    a. Paying less than the due wages: Fine upto Rs.50000/-, repeats
    same offence within 5 years: fine upto Rs.100000/- or
    imprisonment upto 3 months or both.
    b. Contravening any provision of the code: Fine upto Rs.20000/-,
    repeats same offence within 5 years: fine upto Rs.40000/- or
    imprisonment upto 3 months or both.
    c. Improper or non-maintenance of records: Rs.10000/-

    Code on wages – 2019: (Complete explanation)


    Chapter 1: Preliminary
    Sec 1: Extends to whole of India [to all employees (ceiling of Rs.24000 is done
    away with) and all employers (unless exempted)]
    Sec 2: Definitions
     Employee - The definition of ‘Employee’ has been amended to include all
    category of employees including Managers, Supervisors, Administrative,
    Operational persons
     Worker - Worker definition includes any person employed in any
    Industry to do any manual, unskilled, skilled, technical, operational,
    clerical or supervisory work for hire or reward.
    It also includes ‘working journalist’ and ‘sales promotion employees’
    Note: There is a distinction made between ‘employee’ and ‘worker’. The
    employee definition includes all employees including managers, supervisors
    and administrative staff whereas the worker definition does not include
    administrative and managerial staff. The supervisors are also excluded from
    the definition of the worker if their monthly wage is more than Rs.15,000 or
    the sum notified by the Central Government. The term ‘worker’ excludes
    managerial and supervisory employees and includes sales promotion
    employees and working journalists.
     Definition of employer (contractor included)
     Uniform definition of wages: (Basic + DA + Retaining allowance, the Code
    provides that in the event payments made to employees under other
    components exceed 50% of all remuneration payable as ‘wages’ under
    the Code, such excess amount shall be deemed as remuneration and will
    be considered as ‘wages’)
    Sec 3: Prohibition of discrimination on ground of gender in wages and in
    conditions of employment.
     No discrimination among employees on the ground of gender in the
    matter of wages for similar work or work of similar nature.

    Chapter II – Minimum wages

    You might also like