A Study on “Labour Code on Wages 2019” and Its Impact on Employee’s Wage Structure

Authors

  • S. Divya
  • B. Shobha Rani

Abstract

India is a labour surplus country where demand and supply is mismatching.The available labourforce is not skilled enough to fulfill the demands.Modern organizations lack proper manpower planning and inadequate management of resources.The compliance of a large number of labour laws is a difficult task.

                Labour reforms establish the concept of the welfare state by providing social justice.The ease of doing business is possible when the labour reforms are liberalized and regularized as per new business requirements.So, the Government of India took the challenging and much needed task of liberalizing the labour laws and codifty them newly . The new code of labour laws will ensure minimum working standards on working conditions,minimum wages,personal progress,skill development for labour and make them do dignified and respectful job.

                The protection of labour force increases their productivity and overall growth of the country as a whole.Regarding Wages,compliance can be made with the “national floor-level  minimum wage”  which ensures minimum living standards for labour.

                The government of India initiated a major labour reforms in the year 2019 to enhance  the ease of doing business.Most of the labour laws were enacted in pre-independence era  which may not be applicable in modern business scenario.As the mode of doing business and living standards of people have changed completely,there is a need for modern labour reforms.In this regard  Government of India proposed to subsume all  the 44 central laws and codify them into FOUR  codes i.e Code on wages bill, Code of occupational,safety,Health and Working conditions,Code on Industrial Relations,Code on Social Security.

                Among all the four codes ,the code on wage bill is the primary bill which was successfully passed in both houses of parliament and got presidential assent on 8th August 2019.

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Published

2020-03-18

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Section

Articles