Law on assured minimum wage for workers faces delay as govt re-issues draft

Minimal changes in previous draft made public in November 2019; minimum working hours norm reversed

Almost a year after the Code on Wages Act became a law, the Union government is still inviting public comments on the draft rules, pushing its effective date of implementation by at least two months.

The Union labour and employment ministry invited comments on the draft Code on Wages (Central) Rules, 2020, on Tuesday for a second time in eight months with minimal changes to the previous draft that was made public in November 2019. The government has, however, reversed a controversial clause that had sought to increase the minimum number of daily hours for workers to qualify for minimum wages and other provisions of the law from eight to nine hours.

The ministry had given public 45 days to comment on the draft rules in November 2019. “But after the changes in the draft, which were made based on public comments, were sent to the law ministry for approval, it pointed out that the labour ministry erred by putting up the draft on its website, instead of seeking views through an official gazette,” a senior labour ministry official, who is not authorised to speak to the press, said.

“Hence, we are inviting the comments all over again,” the official said. 

The Code on Wages Act became a law in August 2019, enabling all workers in India to receive minimum wages. At present, about 60 per cent of the workers in India are entitled to receive minimum wages.

The second draft is identical to the previous one issued in November, except for minor changes. “The ministry had received most of the comments — almost 600 — on the clause related to working hours which has been rectified now,” the ministry official said.

According to the previous draft, workers who have worked for nine hours in a day will be eligible for minimum wages, as against eight hours in the existing law. The government has decided to stick to eight hours in the latest draft.

The government has also relaxed the terms of responsibility for the principal employers in case the contractors (who arrange workers for the former) fail to pay minimum bonus to workers stipulated under the law. In the previous draft, principal employers were held liable in case contractors failed to pay bonus to workers. Now, only if the principal employers get “written information of such failure” from employees or registered trade unions will they become liable towards this sum.

For the first time, the ministry has made a set of rules prescribing the way in which it will fix the minimum wages and will cover the cost of workers’ family on children’s education, medical requirements and recreation, in a bid to remove arbitariness.