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Code of Wages 2019 - Whether Minimum Wages as notified by the Government amenable to splitting by authorities, or segregation by employers

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 Opinion regarding Minimum Wages – While the definition of Wages, inclusive and exclusive components have been crafted uniform across  all the Labour Codes, the Industry is gripped with confusion and also concerned about the sustainability. The core reason being clear cut codification of what consist of Minimum Wages and also the 50% cap of allowances. The Hon'ble Supreme Court in its path-breaking judgements in Airfreight and Hindustan Satanitary Ware cases, has made crystal clear, as to whether Minimum Wages as notified are amenable to splitting into components by the Authorities and the limited prerogative of the Employers for segregation. Let us review the brief definitions of the relvant law viz. Minimum Wages Act, 1948 and the Code of Wages, 2019 (effective 21st November, 2025). A) Definitions under the Minimum Wages Act, 1948  2 (h) “wages” means all remuneration, capable of being expressed in terms of money which would if the terms of the contract of employment ...
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Corporate Governance - Compehensive Analysis under PoSH, BNS and Companies Act.

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 Corporate Governance  - Compehensive Analysis under  PoSH, BNS and Companies Act. 1.1 Gender Diversity and a safe workplace for women are essential attributes of Good Corporate Governance. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, shortly known as the PoSH Act was enacted to provide protection to all working women from organised and unorganised sectors alike, regardless of hierarchy.  1.2 The Genesis: The Supreme Court, while voicing its serious concerns on the sexual harassment faced by working women   in the case of Vishaka & Ors. V. State of Rajasthan & Ors. [1997(7) SCC 323] reaffirmed that sexual harassment at workplace is a form of discrimination against women and provided a set of guidelines (known as VISHAKA Guidelines), to address this issue, pending enactment of suitable legislation.  2.0 The PoSH Act. 2.1 The PoSH Act (Act) mandates provision of safe, secure and enabling environme...
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PoSH: Prevention of Sexual Harassment – pre-requisite for any organization, be it a corporate or MSME – Organized OR Unorganized Sectors

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  Prevention of Sexual Harassment – pre-requisite for any organization, be it a corporate or MSME – Organized OR   unorganized sectors   a Pocket Guide  This article focusses on the understanding the essence of compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH Act) and Ensuring Governance  I have endeavoured to cover the important definitions, basis key principles as enunciated by the Hon’ble Supreme Court and the High Courts, to understand the objectives and the spirit of the PoSH Act, with a better perspective.  For the sake of brevity only key excerpts are reproduced and the readers may review the relevant judgments, available on web. Few judgements are covered on this blog and for other judgements, web-search, or write to me.  FAQ: (1)   Common understanding is that only the employer of the Respondent can conduct the enquiry. How would an aggrieved woman be comfor...
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Contract Labour & Labour Codes - Whether permissible or not permisible - what are Core Activities

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 Contract Labour – Distinction between the Core & non-core Activity CLRA /OSH Code A) OSH Code A blanket prohibition has been imposed by section 57 of the Occupational Safety. Health and Working Conditions Code,2020 ("OSH Code", hereinafter) on the engagement of contract labour in the core activities of the establishment of the principal employer.  • The Code, under section 2(1)(p) defines a "core activity" as any activity for which the establishment is set up.  Core Activities • This would further include any activity which is essential or necessary to any activity for which the establishment of the principal employer is set up.  • The definition of core activity is very wide and sweeping in its ambit. However,  even if certain activities are essential or necessary to the establishment of the principal employer, they would not be considered as core activities.        Non-Core Activities • Illustrations:  (i) sanitation w...
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Labour Codes - Key update on Worker & Supervisor - Code of Wages & IR Code

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 The Code on Wages earlier prescribed a ceiling of Rs.15000 p.m. as wage, for a person working as supervisor also to be considered  as worker and excluded persons earning above Rs.15000/- pm.  However, the Industrial Relations Code prescribed a higher ceiling of Rs.18,000 p.m., for the above threshold creating a disparity between two codes. The Central Government, now pursuant to the powers vested in them under the Code(s) has notified (Notification No.S.O.454(E) dated 30th January, 2026). that the Ceiling under the Code of Wages also as Rs.18,000, thereby rectifying the disparity. Accordingly  the Section 2(z) "Worker" will stand modified as below. "worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961 (52 of 1961)) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied...
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Benefits of Social Security Code - Ministry of Labour, Central

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 1 Benefits of The Code On Social Security, 2020  The Code on Social Security, 2020 is a legislation having been passed by both the  Houses of Parliament, received the assent of President on 28th September, 2020 that  consolidates and amends 9 existing social security laws to extend benefits to all  workers, including those in the unorganized, organized, gig and platform  workers. It aims to provide comprehensive social security schemes for life and  disability insurance, health, and maternity benefits, and provident fund, while also  introducing digitized processes and inspector-cum-facilitator roles to improve  compliance and support for employers.   Pro Workers Provisions 1.Gratuity to Fixed term employees (Section 53): Normally Fixed Termed Employees (FTE) are engaged for a short period like one  year or two years or so. As a result, many of them cannot become eligible for gratuity for not fulfilling statutory five years continu...
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Labour Codes: Code of Social Security 2020 and consequent changes for ESIC Compliance

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Consequent upon the notification of the Labour Codes - specific provisions, mainly the definition of the "Wages" across all Codes, the impact on ESIC Compliance - Coverage  & Contributions would be as follows" As per section 2 (88) of Code on Social Security, 2020 (CoSS) “Wages” means all remuneration, by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, expressed or implied were fulfilled, be payable to a person employed in respect of his employment or work done in such employment and includes,- (a)                Basic pay; (b)                Dearness allowances; (c)                 Retaining allowances; if any, But does not include any other components which are listed in sub clause (a) to (k). (a) Any bonus payable under any law for time being in force (b) Th...
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