Ushering In A New Framework For Wages: President Gives Assent To The Code On Wages 2019

INTRODUCTION

A significant development in its own right, the Code on Wages, 2019 ("Wages Code") is an attempt by the Government of India to consolidate and simplify the existing multitude of labour laws in the country. The Wages Code will subsume and replace the following 4 labour statutes:

1. Payment of Wages Act, 1936 ("PW Act");
2. Minimum Wages Act, 1948 ("MW Act");
3. Payment of Bonus Act, 1965 ("Bonus Act"); and
4. Equal Remuneration Act, 1976 ("ER Act").

A consolidated code was first introduced in the Lok Sabha on 10 August 2017 ("Wages Bill 2017"). Thereafter, the same was referred to the Standing Committee on Labour 2018-19 ("Standing Committee") for examination, pursuant to which the Standing Committee released a report with its recommendations in December 2018. However, due to dissolution of the Parliament, the Wages Bill, 2017 lapsed. Our analysis of the Wages Bill, 2017 can be accessed here. We had previously also discussed the