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Budget 2018: 1st labour code on wages likely to be passed in Budget session

At present, the provisions of Minimum Wages Act and Payment of Wages Act do not cover substantial number of workers

Press Trust of India  |  New Delhi 

labour, worker, wage, workers wage

Looking to bring a wave of labour reforms this year, the will push its first labour code — Code Bill — in the forthcoming session which would enable it to set benchmark for different regions.

"Code Bill will be the first labour code which would be pushed for passage in the session. Labour ministry is expecting Parliament's select committee to table the bill in the session beginning by the end of this month," a source said.

The draft Code on Wages Bill 2017 was introduced in the in August 2017. Thereafter, it was referred to the select committee for scrutiny.

The bill seeks to combine Payment of Wages Act, 1936, the Minimum Wages Act, 1949, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976 into one code.

The and Employment aims to combine over 44 labour laws into four broad codes in wages, industrial relations, social security, and occupational safety, health and working conditions.

"The other three codes are at different levels of consultations with the stakeholders. These bills would also be pushed for passage in the by the labour ministry this year," the source added.

The codification of labour laws will remove the multiplicity of definitions and authorities, leading to ease of compliance without compromising security and social security to workers.

At present, the provisions of the and the Payment of Wages Act do not cover substantial number of workers, as the applicability of both these Acts is restricted to scheduled employments/establishments.

However, the new Code on Wages will ensure minimum wages to all and timely payment to employees irrespective of the sector without any ceiling.

The bill proposes a concept of statutory National for different geographical areas. It will ensure that no state fixes the below the benchmark decided by the Centre for that particular area.

It also provides for an appellate authority between the claim authority and the judicial forum which will lead to speedy, cheaper and efficient redressal of grievances and settlement of claims.

It also provides for rationalisation of penalties for different types of violations.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, January 14 2018. 15:58 IST
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