UncategorizedHow Uniform Code on Wages will be Useful?

March 26, 20210

The Labour & Employment Sector, for a long time has been looking forward to a better distribution and review mechanism for minimum wages.

Therefore, the introduction of the 4 uniform Labour Codes by the government is a step towards addressing labour welfare and their rights, which will In turn improve implementation of Labour Laws at the ground level.


Reduction in Multiplicity of Litigations

Further, the Uniform Code will help in reducing multiplicity of litigations before different authorities as the Code gives clarity to the concepts that were earlier inconsistent because of varied definitions of a single term. Moreover, the term ‘Wages’ that accounts for the maximum number of litigations under the Labour Dispute; has now been defined in the Code.


Liability on Employer

The Code also enhances the liabilities on the employers by making it graver and more stringent as already discussed  above  under  the  head “Punishment”. Further, the Code also discusses penalty for a subsequent offender.


No Schedule List

Thereafter, unlike the Minimum Wages Act, 1948; the Code does not have a ‘Scheduled List’ that sets minimum wages for different employments. Furthermore, the addition of new employment to the scheduled list was a lengthy process because the same was to be issued by a Notification in the Official Gazette after the deliberation of the Central and the State Government.


Suggestions of Advisory Board

However, under the Code the State Government has been empowered to fix and revise the minimum wages for  any  employment  after  taking  into consideration the suggestions of the Advisory Board.


Inspector -cum-facilitator

Moreover, the term Inspectors has been replaced by the term Inspector-cum-facilitator under the code in order to ensure better compliance, as the role also includes –

  1. Carry out examination of the persons found in the establishment;
  2. Conduct inspection of the premises;
  3. Advise the employers and workers regarding compliance of the Code;
  4. Gather information from any person as required provided, it is in the power of such Inspector-cum-facilitator;
  5. Search, seize or take copies of such register, record of wages or notices or portions of such records, which is considered relevant to prove such offence provided, the Inspector-cum- facilitator has sufficient reason to believe that an employer has committed such an offence.


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