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ARTICLE · 21 JANUARY 2020

The Code On Wages Act, 2019

Labour laws in India have traditionally been governed by multifarious and fragmented legislations, both at the central and state level.

IndiaEmployment and HR

Labour laws in India have traditionally been governed by multifarious and fragmented legislations, both at the central and state level. With a view to harmonising and consolidating the various legislations pertaining to wages, the Ministry of Labour and Employment ("Ministry") first introduced the Code on Wages Act in Lok Sabha on August 10, 2017, which lapsed. The Code on Wages Act, 2019 was reintroduced in the Lok Sabha on July 23, 2019 and gained presidential assent on August 08, 2019 after getting passed in both houses of the Parliament.

The Code on Wages Act, 2019 ("Code") has unified and subsumed four different acts, namely the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976.  The implementation of the Code is expected to have wide ranging implications for a majority of industries and it is therefore crucial to understand the key aspects of the Code and how they differ from the

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