Compliances for the Minimum Wages under the Code on Wages (Uttar Pradesh) Rules, 2021

Background

The minimum wage provisions under the Code on Wages (Uttar Pradesh) Rules, 2021 are rooted in the Code on Wages, 2019, which consolidated and replaced earlier wage laws, including the Minimum Wages Act, 1948. The Code aims to ensure uniform wage definitions, simplify compliance, and extend minimum wage protection to all employees. A key feature is the introduction of a national floor wage to be fixed by the Central Government, below which States cannot prescribe minimum wages, while allowing flexibility to address local conditions. Since labour is a concurrent subject, Uttar Pradesh framed the Code on Wages Rules, 2021 to implement the central framework at the State level.

 

Applicability

Establishment covered under Code on Wages (Uttar Pradesh) Rules, 2021

Compliance Requirements under the Rules in Accordance with the Code

 

  1. Prohibition of discrimination on ground of gender in recruitment and payment of wages in U.P. (Section 3)
    This provision is not applicable where the employment of women in such work is prohibited or restricted by or under any law for the time being in force.
    Worker does not include Apprentice engaged under Apprentices Act, 1961 but includes working journalists and sales promotion employees. Worker also does not includes a person employed in managerial or administrative capacity or in a supervisory capacity drawing wages exceeding fifteen thousand rupees per month or such other notified amount
    Employer includes a) Occupier / manager in relation to a factory and b) in relation to any other establishment includes person who has control over the affairs of the est. if entrusted to Manager/MD, c) Contractor and d) legal representative of deceased employer
  1. Payment of Minimum Wages in UP (Section 5, 7; Rule 3, 4)

No employer shall pay to any employee wages less than the minimum rate of wages as as per rule 3 of Uttar Pradesh Code on Wages Rules, 2021

Minimum rate of wages shall be fixed as per Rule 3, wherein following criteria to be considered: (a) Standard working-class family which includes a spouse and 2 children apart from the earning worker; an equivalent of 3 adult consumption units (b) A net intake of 2700 calories per day per consumption unit (c) 66 meters cloth p.a. per standard working class family (d) Housing rent expenditure to constitute 10% of food and clothing expenditure (e) Fuel, electricity and other miscellaneous items of expenditure to constitute 20% of minimum wage (f) Expenditure for children education, medical requirement, recreation & expenditure on contingencies to constitute 25% of minimum wage

  1. Payment of wages to employee who works for less than normal working day in U.P. (Section 10)

Employee whose minimum rate of wages has been fixed under this Code by the day works on any day on which he was employed for a period of less than the requisite number of hours constituting a normal working day, he shall be entitled to receive wages in respect of work done on that day.

Exception to Section 10: Employee shall not be entitled to receive wages for a full normal working day: (i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work; (ii) in such other cases and circumstances, as may be prescribed.

  1. Payment of wages to employee involved in two or more classes of work in U.P. (Section 11)

If employee does two or more classes of work and there are different rates of minimum wage for each class, then minimum wages shall be calculated on the basis of work done in each class of work.

Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.

  1. Payment of minimum wages as per time rate to employee involved in piece work in U.P. (Section 12)

Where a person is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Code, the employer shall pay to such person wages at not less than the minimum time rate.

  1. Payment of wages for overtime work at twice the normal rate of wages in U.P. (Section 14; Rule 11)

Where an employee whose minimum rate of wages has been fixed under this Code by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess, at the overtime rate which shall not be less than twice the normal rate of wages.

  1. Mode of payment of wages in U.P. (Section 15)

All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee or by the electronic mode.

Provided that the appropriate Government may, by notification, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account

8. Hours of work for normal working day in U.P. (Section 13; Rule 7)

Nothing in this rule shall be deemed to affect the provisions of the Factories Act, 1948 or as the case may be the Code on Occupation, Safety and Health and Uttar Pradesh Shops and Commercial Establishments Act, 1962
The provisions in case of agricultural employment, be subject to such modifications as determined by State Government.
The provisions will apply subject to the condition that in case of specified class of employees as given in section 13(2), the actual hours of work excluding the intervals of rest and the periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attendance shall not exceed 9 hours in any day and the spread over of the hours of work of the employee shall not exceed 16 hours in any day.

9. Number of rest day in a week in U.P. (Section 13; Rule 8)

    1. An employee shall be entitled to rest day only if he has worked under the same employer for a continuous period of not less than six days
    2. Employee shall be informed of the day fixed as the rest day and of any subsequent change in the rest day at least 48 hours before the change is effected, by notice electronically or manually and display of a notice to that effect on the notice board as designated by the employer.
    3. The provisions will apply subject to the condition that in case of specified class of employees as given in section 13(2), the actual hours of work excluding the intervals of rest and the periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attendance shall not exceed 9 hours in any day and the spread over of the hours of work of the employee shall not exceed 16 hours in any day.
  1. Substituted rest day in UP (Rule 7(2))
    1. However no substitution shall be made which will result in the employee working for more than ten days consecutively without a rest day for a whole day
    2. Where in accordance with the foregoing provisions of this rule, any employee works on a rest day and has been given a substituted rest day on any one of the five days before or after the rest day, the rest day shall, for the purpose of calculating the weekly hours of work, be included in the week in which the substituted rest day occurs.
  1. Provide rest day to employee whose work shift has extended beyond midnight in U.P. (ule 9)

Where an employee in an employment works on a shift which extends beyond midnight, then –

(a) a rest day for the whole day for the purposes of rule 7 shall, in this case means a period of twenty four consecutive hours beginning from the time when his shift ends; and

(b) the following day in such a case shall be deemed to be the period of twenty-four hours beginning from the time when such shift ends, and the hours after midnight during which such employee was engaged in work shall be counted towards the previous day.

  1. Longer wage period in UP (Rule 11)

Longer wage period for the purposes of minimum rate of wages under section 14 shall be by the month.

Penalty & Punishment

U/s 54: Contravenes any other provision of this Code or any rule made or order made or issued thereunder shall be punishable with fine which may extend to Rs.20000.

If again found guilty of similar offence under this clause, within 5 years from the date of the commission of the first or subsequent offence, he shall, on the second and the subsequent commission of the offence under this clause, be punishable with imprisonment for a term which may extend to one month or with fine which may extend to Rs.40000/-, or with both

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