Code on Wages: Absence of written contract makes enforcement difficult

The Code on Wages, which was introduced in the Lok Sabha in August 2017, consolidates four laws related to minimum wages, payment of wages and bonus and equal remuneration

At present there are around 40 state and central laws regulating different aspects of labour, such as resolution of industrial disputes, working conditions in factories and wage and bonus payments. The Code on Wages was introduced in the Lok Sabha in August 2017. The Code consolidates four laws related to minimum wages, payment of wages and bonus and equal remuneration. The Code is currently being examined by the Parliamentary Standing Committee on Labour. Vinayak Krishnan, analyst with PRS Legislative Research, explains the Code, in light of the recent demand by some labour unions to raise the minimum wages. Edited excerpts: