THE CODE ON WAGES, 2019
HIGHLIGHTS OF THE CHANGES MADE
- HRA – No more part of minimum wages
- Geographical Areas classified as metropolitan, non metropolitan and rural areas (Rule 4)
- The employees employed in supervisory or Managerial position are also eligible for Minimum Wages
- Statutory force given for national floor level wages
PAYMENT OF BONUS
- The Code is silent about the applicability of bonus chapter if the threshold limit falls below subsequently
- Wages ceiling for eligibility for Bonus: To be fixed by the Appropriate Governments
- Wages ceiling for calculation of Bonus : To be fixed by the Appropriate Governments
- Mode of payment of bonus – Only by giving bank credit
- Disqualification for bonus: ‘conviction for sexual harassment added
- In case of non-payment of minimum bonus to the contract worker, company should pay the same. But no specification about recovery from contractor
PAYMENT OF WAGES
- Contractor’s payment shall be ensured by Company before the contractor makes the payment of wages to his employees
- Payment of Wages Act – Ceiling of Rs 24000/- removed now – the Act applies to all
- In case of separation, including resignation, the settlement is to be made within the next two working days
- Daily wage shall be paid by the end of the day
- Weekly wage shall be paid on the last working day of the week
- Fortnightly wage shall be paid within 2days after the end of the period
- Monthly wages shall be paid within 7 days after the month
- Total amount of deduction in any wage period from the wages of employed person shall not exceed 50% (Currently in case of co-operative Society – 75 %)
- Recovery of advance can be done without any stipulated time but with one condition i.e. Recovery can’t go more than 50% on any wage period
- Now all gender can claim equal remuneration
1 Period of limitation is 3years for a claim.
2 In case non-payment of MW, Bonus & Equal remuneration – in addition to the amount payable, 10 times of such amount can be recovered from the employer
3 Introduction of Web-based inspection Scheme
4 The role of the inspector is modified as Inspector cum facilitator
5 In case of a complaint, the Court can take cognizance directly from the employee and the Registered Trade
6 Burden of Proof – lies with the employer
7 Common definition for ‘wages’ for all the four existing laws
8 Certain allowances, excluded for Minimum Wages and Bonus but included for Payment of Wages and Equal Remuneration (Convey, HRA, Remuneration under Settlement & Award and OT)
9 A cap – 50 % -fixed for ‘excluded Components’.
10 The employee does not include the contract laborers.
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