The Ministry of Labour and Employment has aissued detailed FAQs on the Labour Codes including Code on Wages, Industrial Relation Code and Occupational Safety, Health and Working Conditions Code

The Ministry of Labour and Employment has issued detailed FAQs on the Labour Codes including –

1. FAQ on Consolidated Labour Code
2. FAQ on Code on Wages, 2019
3. FAQ on Industrial Relation Code, 2020
4. FAQ on Occupational Safety, Health and Working Conditions Code, 2020

Key Clarifications:

I. Under the FAQ on Consolidated Labour Code –

1. Wages are defined as all such remuneration whether by way of salaries, allowances or otherwise payable to a person employed. This includes basic pay, dearness allowance, retaining allowance, if any, and if the payments/allowances other than basic pay, dearness allowance and retaining allowance exceed 50% or such percentage as notified of all remuneration, then amount exceeding 50% or such percentage as notified shall be added in the “Wages”. This single definition of wages applies across all four Labour Codes, and the same definition applies uniformly for statutory calculations. It covers the following:

a) All remuneration whether by way of salary, allowances or otherwise. These include basic pay, dearness allowance and retaining allowance, if any.

b) If the allowances (except gratuity and retrenchment compensation) exceeds 50% of all remuneration, the excess amount shall be added back to wages.

c) Performance based incentives, Employee Stock Option Plans (ESOPs), variable part of the component or reimbursement-based payments to the employee should not be part of the wages.

2. Gratuity should be payable on following events, namely, on termination, on superannuation (retirement due to age), on resignation, on death or disablement due to accident or disease, on expiration of a fixed-term employment contract, or on any other event notified by the Central Government. Also, completion of five years of continuous service is not necessary in case of, Death (paid to nominee or legal heirs), Disablement, Expiration of fixed-term employment or other events notified by the Central Government. If the nominee or heir is a minor, the share must be deposited with a competent authority and invested in bank/financial institution for the benefit of such minor until majority.

II. FAQ on Code on Wages, 2019:

1. The Data Entry Operators and employees in similar categories are included under the minimum wage provisions of the Code on Wages, 2019 and covers all employees, including full-time, part-time, temporary, casual and contractual workers.

2. Bonus is payable to every employee who has worked for at least thirty days in an accounting year as per the wage ceiling prescribed by the appropriate government.

3. The floor wage acts as a baseline, and States cannot reduce existing minimum wages if they are already higher than the floor wage.

4. Flexibility in working hours will not reduce minimum wages, and overtime work must be paid at least twice the normal wage rate.

5. Employers should not discriminate on the basis of gender, including transgender persons, in wages, recruitment, or conditions of employment for the same or similar work.

III. FAQ on Industrial Relation Code, 2020:

1. The Industrial Relations Code, 2020 does not ban strikes, but requires a mandatory 14-day notice before going on strike.

2. Mandatory one-month notice and retrenchment compensation remains, with prior government permission required for retrenchment in establishments with 300 or more workers, thereby protecting the worker’s rights and job security and regulating lay-off/retrenchment/closure.

3. Fixed-term employees will receive all benefits like permanent workers, including EPF, ESI, flexible hours, minimum wages, and gratuity after one year, reducing contractualisation, boosting pride, and improving skills and employability.

4. The Code safeguards workers’ interests through unions/councils, works and grievance committees, retrenchment and closure safeguards, and effective dispute resolution.

5. Sales promotion employees and working journalists are now legally recognized as ‘workers’ under the Code.

IV. FAQ on Occupational Safety, Health and Working Conditions Code, 2020:

1. Workers’ rights to health, safety, and welfare are safeguarded under the Code for all establishments with 10 or more employees, and while the threshold for licensing has been increased to make administration easier, it does not reduce or compromise the protections and entitlements of workers.

2. The Code allows women to work in any establishment, including night shifts, with mandatory safety, transport, and security measures, and requires their consent, promoting gender equality with safeguards.

3. The Code mandates a toll-free helpline for Inter-State Migrant Workers, allowing them to contact the government for help with any difficulties.

4. The Code covers all employees, including fixed-term employment workers, motor-transport workers and contract workers and they will get all benefits like appointment letters, annual health check-ups etc.

5. The Code recognizes transgender workers and mandates separate bathing, toilet, and restroom facilities to ensure their dignity, privacy, and equal access at the workplace.

The FAQs are attached herewith, for your further ease of reference.

Source: Ministry of Labour and Employment