Labour and Industrial Laws II
Dr. Bhimrao Ambedkar Law University, Jaipur · LL.B. Semester 2 · 2.5
Unit I — THE CODE ON WAGES, 2019 — DEFINITIONS, MINIMUM WAGES AND EQUAL REMUNERATION
1.1 Object, Scope and Application of the Code on Wages, 2019 (No. 29 of 2019); Statutes Consolidated: Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act, 1976; Key definitions: 'wages', 'employee', 'worker', 'employer', 'establishment', 'contractor', 'contract labour'; Exclusions from the definition of wages (bonus, HRA, conveyance allowance, gratuity, overtime allowance, etc.) · 1.2 Minimum Wages: Fixation and Revision — Obligation of the appropriate Government under Section 6; Components of minimum wages (basic rate, cost of living allowance, all-inclusive rate) under Section 7; Procedure for fixation and revision — Committee method and notification method — under Section 8; Review of minimum wages at intervals not exceeding five years · 1.3 Floor Wage — Power of the Central Government to fix floor wage under Section 9; Different floor wages for different geographical areas; Primacy of floor wage over State-fixed minimum wages; Hours of Work — Fixing normal working day, weekly rest and overtime under Section 13; Entitlement to wages for incomplete working day (Section 10); Payment at not less than twice the normal rate for overtime (Section 14); Wages for two or more classes of work (Section 11); Minimum time-rate wages for piece work (Section 12) · 1.4 Prohibition of Gender Discrimination in Wages — Equal wages for same work or work of similar nature under Section 3; Definition of 'same work or work of similar nature' (Section 2(v)); Prohibition on reducing wages or discriminating in recruitment; Dispute resolution mechanism (Section 4) · 1.5 Advisory Boards — Constitution and composition of the Central Advisory Board and State Advisory Boards under Section 42; Mandatory one-third representation of women; Advisory functions: fixation/revision of minimum wages, employment of women, and other matters; Power of the Central Government to issue directions to State Governments on the Board's advice
Unit II — THE CODE ON WAGES, 2019 — PAYMENT OF WAGES, DEDUCTIONS, BONUS AND ENFORCEMENT
2.1 Mode, Period and Time of Payment of Wages — Mode of payment by currency, cheque, bank credit or electronic mode (Section 15); Fixation of wage periods — daily, weekly, fortnightly, monthly (Section 16); Time limits for payment of wages (Section 17); Payment of wages on removal, dismissal, retrenchment or resignation within two working days; Responsibility of employer for payment of dues (Section 43) · 2.2 Deductions from Wages — Exhaustive list of permissible deductions under Section 18(2): absence, fines, house accommodation, advances, income tax, provident fund contributions, trade union fees; Ceiling of fifty per cent of wages on total deductions (Section 18(3)); Restrictions on imposition of fines (Section 19); Deductions for absence from duty (Section 20); Deductions for damage or loss (Section 21) · 2.3 Payment of Bonus — Eligibility: minimum thirty days of work in accounting year (Section 26); Minimum bonus of 8.33% and maximum of 20% of wages; Allocable surplus (Section 31); Available surplus (Section 33); Computation of gross profits (Section 32); Deductions from gross profits as prior charges (Section 34); Set on and set off of allocable surplus (Section 36); Disqualification: fraud, violence, theft, misappropriation, or conviction for sexual harassment (Section 29); Time limit for payment of bonus — eight months from close of accounting year (Section 39) · 2.4 Claims and Dispute Resolution — Authority for claims under Section 45; Compensation up to ten times the claim amount; Limitation period of three years; Single application on behalf of multiple employees; Reference of bonus disputes as industrial disputes (Section 46); Appellate authority and procedure (Section 49); Burden of proof on employer (Section 59); Bar of suits (Section 57); Contracting out rendered void (Section 60) · 2.5 Enforcement — Inspector-cum-Facilitator: appointment, jurisdiction, advisory role, and powers of inspection, examination and seizure (Section 51); Maintenance of registers, notice boards and wage slips (Section 50); Offences and Penalties: underpayment (fine up to Rs. 50,000), contraventions, repeat offences carrying imprisonment (Section 54); Offences by companies and vicarious liability of directors and officers (Section 55); Composition of offences (Section 56); Cognizance of offences — complaint before Metropolitan Magistrate or Judicial Magistrate, First Class (Section 52)
Unit III — THE CODE ON SOCIAL SECURITY, 2020 — EPF, ESI, GRATUITY AND MATERNITY BENEFIT
3.1 Object, Scope and Application of the Code on Social Security, 2020 (No. 36 of 2020); Statutes Consolidated — including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952; Employees' State Insurance Act, 1948; Maternity Benefit Act, 1961; Payment of Gratuity Act, 1972; Employees' Compensation Act, 1923; Key definitions: 'employee', 'wages', 'employer', 'establishment', 'gig worker', 'platform worker', 'aggregator', 'unorganised worker', 'social security'; Threshold applicability of different schemes · 3.2 Employees' Provident Fund, Pension and Insurance — Provident Fund Scheme (Chapter III): employer and employee contribution rates; Employees' Pension Scheme; Employees' Deposit Linked Insurance Scheme; Central Board of Trustees — constitution, powers and functions; Recovery of dues; Exempted establishments and conditions of exemption; Investment of Provident Fund; International workers and portability of benefits · 3.3 Employees' State Insurance — ESI Scheme (Chapter IV); Employees' State Insurance Corporation — constitution, management and powers; Employer and employee contribution obligations; ESI Fund — administration and investment; Benefits: medical, sickness, maternity, disablement, dependants', unemployment, and rehabilitation benefits; ESI hospitals and medical facilities; Adjudication of disputes and claims before ESI Courts; Penalties for non-payment of contributions · 3.4 Gratuity — Chapter V; Eligibility: five years of continuous service; Formula for computation: fifteen days' wages for every completed year of service; Enhanced gratuity for employees engaged in hazardous or arduous occupations; Payment on death or disablement without the five-year condition; Forfeiture of gratuity for misconduct; Nomination; Controlling authority and appellate authority; Ceiling on gratuity amount · 3.5 Maternity Benefit — Chapter VI; Eligibility: eighty days of work in twelve months preceding expected delivery; Period of maternity leave: twenty-six weeks for first two children, twelve weeks for third child and beyond; Extended leave for illness arising from delivery; Leave for commissioning mothers and adopting mothers; Prohibition of dismissal during absence on maternity benefit; Medical bonus; Crèche facilities for establishments employing fifty or more women employees; Nursing breaks; Powers and duties of Inspectors
Unit IV — THE CODE ON SOCIAL SECURITY, 2020 — UNORGANISED WORKERS, GIG & PLATFORM WORKERS, COMPENSATION AND ENFORCEMENT
4.1 Social Security for Unorganised Workers (Chapter IX) — National Social Security Board: constitution and functions; Formulation of schemes covering life and disability, health, maternity, old age, education, and housing; Building and other construction workers: Welfare Boards, registration of workers and levy on construction cost; Registration of unorganised workers on the national portal; Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) and other welfare schemes. · 4.2 Social Security for Gig Workers and Platform Workers (Chapter X) — Definitions of 'gig worker', 'platform worker' and 'aggregator'; Formulation of schemes: life and disability coverage, accident insurance, health and maternity benefits, old age protection; Contribution by aggregators: one to two per cent of annual turnover subject to a ceiling of five per cent of the amount payable to gig and platform workers; National Social Security Board for gig and platform workers; Registration of gig and platform workers. · 4.3 Employment Injury Compensation (Chapter VII) — Employer's liability for compensation in case of accident arising out of and in the course of employment; Scheduled occupational diseases; Computation of compensation for death, permanent total disablement, permanent partial disablement, and temporary disablement; Commutation of compensation; Medical examination; Compensation Commissioner — appointment, powers and procedure; Distribution of compensation; Priority of compensation dues; Special provisions for seamen and master craftsmen. · 4.4 EPFO and ESIC: Governance and Financial Management — Accounts and audit of Provident Fund and ESI Fund; Annual reports to Parliament; Power to recover arrears; Attachment and auction of property; Priority of provident fund dues in insolvency or winding up; Provident Fund Appellate Tribunal: jurisdiction and procedure; Coordination between EPFO and ESIC in administration of schemes. · 4.5 Enforcement and Penalties — Social Security Organisations: inspection scheme (web-based), appointment and powers of Inspector-cum-Facilitators; Search, seizure and examination; Penalties for non-payment of contributions, false statements and obstruction; Offences by companies and directing-mind liability of directors and officers; Compounding of offences; Adjudicating authority and appeals; Claims procedure and limitation.