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.
© 2021 Khaitan & Co. All rights reserved.
Mumbai
One Forbes
3rd & 4th Floors, No. 1
Dr. V. B. Gandhi Marg
Fort, Mumbai 400 001
Chennai
119/65, First Floor
Dr Radhakrishnan Salai
Mylapore
Chennai 600 004,
India
Noida
Max Towers
7th & 8th Floors
Sector 16B, Noida
Gautam Buddh Nagar
201 301 India
Singapore
Ocean Financial Centre
#37-02 10 Collyer
37th Floor Quay
Raffles Place 049315,
Singapore