The Code on Wages
chandigarh · 2019
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1(1) This Act may be called the Code on Wages, 2019
- S. 2Section 2 defines key terms used in the Code on Wages, including "accounting year," "Advisory Board," and "appropriate Government."
- S. 3Section prohibits gender-based wage discrimination and restricts employers from reducing wages or discriminating in recruitment based on sex.
- S. 4Section resolves disputes on whether work is of same or similar nature for minimum wage purposes by a notified authority.
- S. 5No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government
- S. 6Section 6 mandates the appropriate government to set minimum wage rates for employees based on skill level and work conditions.
- S. 7Section 7 outlines the components of minimum wages, including basic wages, cost of living allowances, and cash value of subsidized supplies.
- S. 8Section 8 outlines the process for fixing or revising minimum wages, including committee formation and government review.
- S. 9The section mandates the Central Government to set a minimum living standard floor wage and consult relevant boards and state governments.
- S. 10Section 10 of The Code on Wages regulates wages for employees working less than a full normal working day.
- S. 11Section ensures employees receive minimum wage for each class of work they perform.
- S. 12Section ensures piece rate workers receive at least minimum time rate wages if no minimum piece rate is set.
- S. 13Section 13 allows the appropriate government to set normal working hours, rest days, and overtime pay rates for minimum wage employees.
- S. 14Section 14 mandates employers to pay employees overtime wages at least double the normal rate for hours worked beyond the standard workday.
- S. 15Section 15 mandates payment of wages in current currency, cheque, bank credit, or electronic mode, with exceptions for certain establishments.
- S. 16The employer must set a wage period for employees, not exceeding one month, with different periods allowed for different establishments.
- S. 17Section 17 mandates specific payment schedules for wages and additional timelines for terminated employees.
- S. 18Section 18 prohibits unauthorized deductions from employee wages, allowing only specific authorized deductions as per the Code.
- S. 19Section 19 prohibits fines on employees except for specified acts, with government approval, and sets limits on fine amounts and recovery terms.
- S. 20Section 20 allows wage deductions for employee absence from work, with limits on the proportion of wages deducted based on absence duration.
- S. 21Limits deductions for employee negligence, requires fair procedure, and mandates record-keeping.
- S. 22Section 22 limits deductions from employee wages for housing amenities or services to their actual value, if accepted as employment terms.
- S. 23Section 23 regulates recovery of employee advances, allowing deductions from wages but exempting travel expenses.
- S. 24Section 24 regulates deductions for loan recovery from employees and prescribes limits and interest rates.
- S. 25Section exempts government establishments from Chapter IV provisions unless specified by government notification.
- S. 26Section 26 mandates annual minimum bonus payments to eligible employees, up to a maximum of 20% of their wages.
- S. 27Section reduces minimum bonus for employees who didn't work full accounting year if bonus exceeds 8.33% of their actual workdays' salary.
- S. 28Section 28 deems employees to have worked in an establishment for wage calculation purposes even if they were laid off, on leave, temporarily disabled, or on maternity leave.
- S. 29Section disqualifies employees dismissed for fraud, violent behavior, theft, or sexual harassment from receiving bonuses.
- S. 30The section treats different departments or branches of an establishment as one for bonus computation unless separate financial records are maintained.
- S. 31(1) The bonus shall be paid out of the allocable surplus which shall be an amount equal to sixty per cent
- S. 32Section 32 specifies how gross profits for an employer's establishment are calculated, with different methods for banking companies and others as prescribed by the Central Government.
- S. 33Section 33 defines the available surplus for accounting years after deductions and includes adjustments for previous year's profits and taxes.
- S. 34Section 34 specifies deductions from gross profits as prior charges, including depreciation and direct taxes.
- S. 35Section 35 specifies how to calculate direct tax for employers under the Code on Wages, excluding certain losses, depreciation, and rebates.
- S. 36Section 36 allows excess or deficient bonus amounts to be carried forward up to four years to balance out bonus payments as prescribed by the Central Government.
- S. 37Section 37 allows employers to deduct previously paid bonuses from future bonus amounts due under the Code.
- S. 38Allows employers to deduct financial losses caused by employee misconduct from the employee's bonus.
- S. 39Section 39 mandates timely bonus payments to employees, with potential extensions and dispute resolution timelines.
- S. 40Section 40 applies Code on Wages provisions to public sector establishments competing with private sectors if their income from such competition is 20% or more of their gross income.
- S. 41Section 41 exempts various categories of employees from the application of the Code on Wages.
- S. 42Section 42 establishes Central and State Advisory Boards to advise the government on minimum wage, employment opportunities for women, and related matters.
- S. 43Section 43 mandates employers to pay wages as per the Code, with proprietors liable if employers fail.
- S. 44Section 44 outlines the procedure for payment of undisbursed dues to an employee's nominee or a designated authority if the employee dies.
- S. 45Section 45 establishes authorities to determine wage claims, order compensation, and recover unpaid amounts as land revenue arrears.
- S. 46Section 46 deems certain wage-related disputes to be industrial disputes under the Industrial Disputes Act, 1947.
- S. 47Section 47 presumes audited financial statements of corporations or companies in wage disputes to be accurate unless proven otherwise.
- S. 48Section 48 mandates that audited accounts of non-corporate employers be considered in wage bonus disputes, and directs audits if necessary.
- S. 49Section 49 allows appeals against orders from a wage authority to a higher government officer, with a 90-day limit, and outlines appeal disposal and dues recovery.
- S. 50Section 50 mandates employers to maintain and display wage records and issue wage slips, except for those employing up to five for specific purposes.
- S. 51Section 51 appoints Inspector-cum-Facilitators to enforce the Code on Wages and conduct inspections.
- S. 52Section 52 restricts who can file complaints for Code on Wages offenses and mandates higher courts for trials.
- S. 53Section 53 authorizes the appropriate government to appoint officers to conduct inquiries and impose penalties for violations.
- S. 54Section penalizes employers for underpaying employees, violating other Code provisions, and mandates a warning before prosecution for record-keeping offenses.
- S. 55Section 55 holds company officers liable for wage code offenses committed by the company, unless they prove lack of knowledge or due diligence.
- S. 56Section 56 allows certain wage code offences to be compounded by a specified officer for 50% of the maximum fine, except for repeat offenders.
- S. 57Section 57 prohibits courts from hearing wage-related suits already addressed under the Code on Wages.
- S. 58Section protects government and its officers from legal action for good faith actions under the Code.
- S. 59Section 59 mandates that employers must prove they paid dues if employees claim non-payment or unauthorized deductions.
- S. 60Section 60 nullifies any contract where an employee waives wage or bonus rights under the Code.
- S. 61Section 61 overrides any conflicting laws or agreements in favor of the Code on Wages.
- S. 62The section allows the government to delegate its powers under the Code to specific officers or authorities.
- S. 63Section 63 allows an employer charged with an offence under the Code to have another charged person brought before the court if the employer proves due diligence and lack of knowledge of the offence.
- S. 64Section protects employer's payments related to government contracts from being attached for debts owed to employees.
- S. 65The Central Government can issue directives to the State Government for implementing the Code on Wages.
- S. 66Section 66 ensures the Code on Wages does not override existing employment guarantee and coal fund acts.
- S. 67Section 67 empowers the appropriate government to make rules for implementing the Code on Wages, detailing various wage-related matters.
- S. 68The section allows the Central Government to issue orders to address difficulties in implementing the Code, but only within three years.
- S. 69Repeals four wage-related acts and ensures continuity of existing provisions under the new Code.