Yet Again: Union Cabinet approves the code on Wages Bill Union Cabinet approved the Code on Wages Bill 2019
On 3 July 2019, the Union Cabinet approved the Code on Wages Bill 2019 (Wages Bill). While an official press release in this regard is awaited, the Union Minister for Information and Broadcasting, Mr Prakash Javadekar, informed the media that the Wages Bill was approved in a meeting held on 3 July 2019.
This is for the second time that the Wages Bill is approved by the Union Cabinet. On 25 July 2017, the erstwhile Union Cabinet approved the consolidated code for the first time subsuming the 4 extant labour laws viz. the Payment of Wages Act 1936, the Minimum Wages Act 1948, the Payment of Bonus Act 1965 and the Equal Remuneration Act 1976, following which the same was introduced in the Lok Sabha on 10 August 2017. The then proposed Code on Wages Bill 2017 (Wages Bill 2017) did not see the light of day as it lapsed upon dissolution of the Lok Sabha. Our analysis of the Wages Bill 2017 can be accessed here.
It is imperative to mention that the Wages Bill 2017 was referred to the Standing Committee on Labour – 2018-19 (Committee) for examination, pursuant to which the Committee released a report in December 2018 with its recommendations. Some of the key recommendations are listed below:
Given the absence of any official release as regards the Wages Bill, it may be difficult at this stage to ascertain and draw a comparison between the provisions of Wages Bill 2017 and the recently approved Wages Bill. Another interesting aspect to look out for would be whether the recommendations of the Committee have been taken into consideration by the Cabinet whilst approving the Wages Bill.
A long and gruelling process is yet to follow before the Wages Bill ultimately turns into the law and gets implemented. To ensure smooth passing of the Wages Bill into a statute, without much agitation from the relevant stakeholders including trade unions, it is likely that few of the recommendations of the Committee may have been considered by the Cabinet whilst approving the Wages Bill. Pursuant to an official release / statement / clarification in this regard, an update will be prepared and shared by us.
Having said that, the approval of the Wages Bill clearly demonstrates the intention of the government to consolidate the law on wages at the earliest. Considering the government’s persuasive aim of improving India’s ranking as regards the ease of doing business, the Wages Bill appears to be positive step.
- Anshul Prakash (Partner), Abhinav Rastogi (Principal Associate) and Deeksha Malik (Associate)
For any queries please contact: editors@khaitanco.com
We have updated our Privacy Policy, which provides details of how we process your personal data and apply security measures. We will continue to communicate with you based on the information available with us. You may choose to unsubscribe from our communications at any time by clicking here.
For private circulation only
The contents of this email are for informational purposes only and for the reader’s personal non-commercial use. The views expressed are not the professional views of Khaitan & Co and do not constitute legal advice. The contents are intended, but not guaranteed, to be correct, complete, or up to date. Khaitan & Co disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident or any other cause.
© 2024 Khaitan & Co. All rights reserved.
Mumbai
One World Centre
10th, 13th & 14th Floor, Tower 1C
841 Senapati Bapat Marg
Mumbai 400 013, India
Mumbai
One Forbes
3rd & 4th Floors, No. 1
Dr. V. B. Gandhi Marg
Fort, Mumbai 400 001
Delhi NCR (New Delhi)
Ashoka Estate
11th Floor, 1105 & 1106,
24 Barakhamba Road,
New Delhi 110 001, India
Kolkata
Emerald House
1B Old Post Office Street
Kolkata 700 001, India
Bengaluru
Embassy Quest
3rd Floor
45/1 Magrath Road
Bengaluru 560 025, India
Delhi NCR (Noida)
Max Towers,
7th & 8th Floors,
Sector 16B, Noida
Uttar Pradesh 201 301, India
Chennai
8th Floor,
Briley One No.30
Ethiraj Salai
Egmore
Chennai 600 008, India
Singapore
Singapore Land Tower
50 Raffles Place, #34-02A
Singapore 048623
Pune
Raheja Woods
03-108-111, 3 Floor
8, Central Avenue, Kalyani Nagar
Pune - 411 006, India
Gurugram (Satellite Office)
Suite No. 660
Level 6, Wing B,
Two Horizon Center
Golf Course Road, DLF 5
Sector 43, Gurugram
Haryana 122 002, India
Ahmedabad
1506 - 1508, B-Blockr
Navratna Corporate Parkr
Iscon Ambli Road, Ahmedabadr
Gujarat - 380058