CHAPTER 1. PRELIMINARY
1. The code on wages, 2019 applies to the whole of India
2. Specific definitions apply in respect of following
a. Accounting year
b. Advisory Board
c. Agricultural Income tax law
d. Appropriate Govt
e. Company
f. Contract Labour
g. Cooperative Society
h. Corporation
i. Direct Tax
j. Employee
k. Employer
l. Establishment
m. Factory
n. Govt Establishment
o. Income Tax Act
p. Industrial Dispute
q. Inspector cum facilitator
r. Minimum wages
s. Notification
t. Prescribed
u. Work of similar nature or same work
v. State
w. Tribunal
x. Worker
3. Prohibition of discrimination on the ground of gender
4. Whether the work will be classified as the same or similar nature shall be decided by the officer or authority appointed
CHAPTER 2. MINIMUM WAGES
5. Payment of lesser wages not allowed
6. Central govt or state govt shall decide the minimum wages for time or piece for hour/day/month based on skill, area, both, and condition of work
7. Minimum wages consist of Basic and cost of living or cost of concessional rates of essential products or all of them
8. To fix and revise the minimum wages, govt will make a committee with equal members from the employer side and employee side and 1/3rd of the total as an independent. The revision shall be made in 5 years
9. Central govt will decide on floor wages. And minimum wages will be higher of floor wages and minimum wages decided by appropriate govt
10. If an employee works lesser by his unwillingness to work, his payment may be deducted pro-rata
11. If 2 types of work are done by an employee, minimum wages shall be pro-rata based on work
12. If the piece rate is given, it will not be less than hour rates
13. Govt will fix the hours to be worked, with intervals and day of rest. Wages of a day of work will be double
14. Overtime rate will be double
CHAPTER 3. PAYMENT OF WAGES
15. Wages will be paid in cash/cheques/bank credit
16. Payment period will be daily/weekly/15th day/monthly
17. Time of payment will be: End of shift for daily, Last working day of the week for weekly, 2nd day after a fortnight for bi-monthly, 7th day of next month for monthly. Payment will be made in 2 days if an employee is dismissed
18. Several deductions including PF, TDS, etc can be made, but maximum deduction in a month will be 50% of wages
19. Fines imposed to an employee shall not be more than 3% of wages of the period, no fines can be imposed on a worker below 15 years. And all fines shall be recorded in registers prescribed
20. Deductions for absence from duty may be made as per provisions given
21. Deductions for damage can be made if negligence is proved
22. Deductions on account of the house can be made only if such house is accepted by the employee
23. Advances given may be recovered
24. Loans given can be deducted
25. This chapter will not apply to Govt Establishment
CHAPTER 4. PAYMENT OF BONUS
26. Bonus will be payable if an employee works for minimum 30 days in a year amount higher of 8.33% of wages or Rs 100 out of allocable surplus
27. If an employee has not worked on all working days then bonus in excess of 8.33% will be reduced pro-rata
28. Working days number will be calculated in the manner prescribed
29. Bonus will be disqualified if an employee is guilty of proven fraud, violent behaviour, theft, sexual harassment
30. Departments and branch shall be treated as the establishment
31. Bonus will be paid from allocable surplus, which will be 60% of available surplus in case of banks and 67% for others
32. Gross profit will be computed in the manner prescribed by rules
33. Available surplus = Gross profit – deductions under sec 34
34. Deductible sums will be agricultural tax, income tax, or direct tax
35. Calculations of direct tax is given
36. Set off rules are given
37. Adjustment of interim bonus
38. Deductions can be made from bonus
39. Time limit for payment of bonus
40. Applicability to govt sectors
41. This chapter not applicable to certain establishments
CHAPTER 5. ADVISORY BOARD
42. Constitution and number of members and work of the central advisory board and state advisory board
CHAPTER 6. PAYMENT OF DUES, CLAIMS, AND AUDIT
43. Responsibility to pay deductions made lies with the employer
44. Employee will not be held responsible for sums deducted and not deposited to govt
45. Provisions of claims
46. Reference to disputes
47. Audited financial statements shall be deemed to be true
48. Audit of non-companies can be made by auditors who can audit the companies
49. Appeal provisions
50. Records to maintain, returns to be filled
CHAPTER 7. Inspector cum Facilitator
51. Appointment of inspectors cum facilitator their powers
CHAPTER 8. PENALTIES
52. Courts will not take cognizance without complaints.
53. Proper officer will only impose penalties
54. Penalty for fewer wages will be 50,000 and for the repeated offense, it will be Rs 1,00,000 and or jail of 3 months and settlement will not be allowed. Penalty for other offense will be 20,000 for 1st time, for a subsequent time in 5 years it will be 40,000 and or jail of 1 month. Penalty for non-maintenance of proper records and returns will be Rs 10,000
55. In the case of a company, the company and its officers will be liable
56. Composition can be made by paying 50% of the maximum penalty in case of offense where the jail is not mentioned. Ie for 1st-time offense mentioned in 54.
CHAPTER 9. MISCELLANEOUS
57. Burden of proof of payment lies with the employer. Payment of wages act, bonus act, minimum wage act, equal remuneration acts stands repealed.
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