The Code on Wages, 2019 was enacted to consolidate and rationalize India’s wage-related labour laws by subsuming the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act into a single unified framework, with the objective of ensuring uniform wage standards, timely payment of wages and elimination of wage discrimination. In line with the central legislation, the Government of Gujarat notified the Code on Wages (Gujarat) Rules, 2021, which lay down the procedural and administrative mechanisms for implementing the Code within the state, replacing earlier wage-related rules and streamlining employer compliance.
Applicability
Compliance Requirements under the Rules in Accordance with the Code
1.Deposit of the undisbursed dues to Labour Welfare/Asst. Commissioner (Code on Wages (Gujarat) Rules, 2021 – Section 44(1 (b), Rule 38)
Where any amount payable to an employee under this Code remains undisbursed because either no nomination has been made by such employee or for any other reason, such amounts could not be paid to the nominee of employee until the expiry of six months from the date the amount had become payable, all such amounts shall be deposited by the employer with the Labour Welfare Commissioner/ Assistant Commissioner of Labour having jurisdiction before the expiry of the fifteenth day after the last day of the said period of six months
2. Deposit of unpaid amount due under the Code in case of death of employee/whereabouts being unknown (Code on Wages (Gujarat) Rules, 2021 – Section 44(1)(a), Rule 37)
Where amount payable to an employee under the Code is due after his death/whereabouts being unknown and amount could not be paid to nominee of employee until expiry of 3 months from date amount had become payable, then such amount shall be deposited by employer with jurisdictional Labour Welfare Commissioner / Assistant Commissioner of Labour
3. Form I: Register of Wages, Overtime, Fine, Deduction for damage and Loss in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Section 19(8), 21(3), 50(1), Rule 42(1),(2),(3), 17)
Every employer of an establishment to which this Code applies shall maintain a register in Form I viz. Register of Wages, Overtime, Fine, Deduction for damage and Loss.
Sec 50(1):Every employer of an establishment to which this Code applies shall maintain a register containing the details with regard to persons employed, muster roll, wages and such other details in such manner as may be prescribed.
Sec 19(8): All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority
Sec 21(3): All deductions and all realizations referred to in sub-section (3) of section 21 shall be recorded in a register to be kept by the employer in Form- I appended to these rules, electronically or otherwise.
The provisions of Section 50(1) is not applicable to employers who employs not more than 5 persons for agriculture or domestic purpose.
4. Revision of dearness allowance payable to employee on minimum wages (Code on Wages (Gujarat) Rules, 2021 – Rule 5)
Revision of Dearness allowance payable to employee on minimum wages twice a year, once before 1st April and once before 1st October.
The Code on Wages, 2019 consolidates and simplifies four central labour laws relating to wages and remuneration. It subsumes the Payment of Wages Act, 1936 (ensuring timely and full payment of wages without unauthorized deductions), the Minimum Wages Act, 1948 (providing for fixation of minimum wages across all employments, now extended universally), the Payment of Bonus Act, 1965 (relating to statutory bonus payable to eligible employees based on profits and productivity, though its provisions continue separately until notified under the Code), and the Equal Remuneration Act, 1976 (ensuring equal pay and non-discrimination for men and women workers). Together, the Code seeks to establish a uniform definition of wages, streamline compliance, and provide a single framework for wage-related matters across sectors and establishments.
5. Provide rest day to employee whose work shift has extended beyond midnight in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Rule 8)
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.
6. Display of abstract and other information as required under Code on Wages in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Section 50(2))
Every employer shall display a notice on notice board at a prominent place of establishment containing abstract of Code On Wages, 2019, category-wise wage rates of employees, wage period, day/date and time of payment of wages and name and address of the Inspector-cum-Facilitator having jurisdiction
7. Form IV: Employee Register in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Section 50(1), Rule 42(3))
Every employer of an establishment to which the Code applies shall maintain a register under sub-section (1) of section 50 in Form I and Form IV, electronically or otherwise.
8. Form V: Wage Slip in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Section 50(3), Rule 43)
Every employer shall issue wage slips electronically or otherwise in Form V within 5 working days of making payment of wages.
9. Timely payment of wages w.r.t. contract employees to contractor in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Rule 45)
Where the employees are employed in an establishment through contractor, then, the company or firm or association or any other person who is the proprietor of the establishment shall pay to the contractor the amount payable to him or it, as the case may be, before the date of payment of wages so that payment of wages to the employees shall be made positively in accordance with the provisions of Section 17.
10. Principal Employer to ensure payment of minimum bonus by contractor to its employees in Gujarat (Code on Wages (Gujarat) Rules, 2021 – Rule 46)
Where in an establishment, the employees are employed through contractor and the contractor fails to pay minimum bonus to them under section 26, then, the company or firm or association or other person as referred to in the proviso to section 43 shall, on the written information of such failure, given by the employees or any registered trade union or unions of which the employees are members and on confirming such failure, pay such minimum bonus to the employees.
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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