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The Code Of wages Act 2019

Labour laws in India played a vital role in creating balance and eradicating discrimination in the pay scale or wages to an employee. One of the key features of every labour law is the assurance of timely payment of wages to every worker. The Code of Wages Act 2019 is the compilation of labour laws or codes specifying all aspects including code on social security, wages, safety, health, working environment and industrial relations of an employee. The Code of wages act came into existence on 8th august 2019 with 9 chapters and 69 sections.

One of the appreciable clause of the act is stated in section 3 that prohibits discrimination on payment of wages on basis of gender for the same work done. Chapter 2 of the act deals with the minimum wages of work fixing normal working hours, minimum time rate for the wages and wages for overtime work and work done less than the normal working time with genuine reason. In accordance to chapter 2 an employer is not allowed to pay wages less than the prescribed minimum wages to an employee. Chapter three deals with the mode of payment of wages including payment through cash or currency or through bank account and the time of payment. This chapters also specifies the deductions of wages on various circumstances including deductions from absence of duty, deduction for loss or damage, deductions for recovery of loan and deduction for recovery of advances in the wages. Section 25 is an exception clause for Government establishments where provisions of Chapter three is not applicable unless and until through notification by the appropriate Government for such Government establishments.

Chapter 4 enumerates the provision for Bonus payment and computation of bonus payment. Section 29 of the Act states the disqualification grounds for the nonpayment of any bonus.

Chapter 5 of the act deals with the advisory board and the disputes arising out under the code and the appeal provisions for the disputes subject to the provisions of the code and existing laws.

Chapter 8 is one of the most important chapters enumerating penalties for the cognizances under the Act. Chapter 9 deals with the bar of suits, faith clause providing protection where any act done on utmost good faith by any Government official subject to the provisions of this act. Power of central government to give directions and power of appropriate Government to make rules are provided in section 65 and section 67.

The Code Of wages act has replaced four existing labour codes in to an act with unique features of appointment of Inspectors cum Facilitators by the appropriate Government to carry out inspections and there by promoting compliance between the employer and employee. The floor wages or compulsory minimum wages, gender equality for the payment of the same work done and assimilation of codes under a single Act promotes a well-balanced employer and employee relationship. Apart from these features through the implementation of the act the rules and regulations are applicable to employees of both organized and unorganized sectors undoubtedly.

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