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    Code on wages act 2019 for CLAT - Practice Questions & MCQ

    Edited By admin | Updated on Sep 25, 2023 25:47 PM | #CLAT

    Quick Facts

    • 9 Questions around this concept.

    Solve by difficulty

    Read the passage and answer the question that follow.

    In the recent past, lawmakers have made efforts in order to simplify the numerous existing legislation pertaining to Labor Law in India. One such legislation that has been assented by the Parliament is the Code on Wages, 2019. Since there is a shortage of employment in rural areas, such workers migrate to cities. Due to their casual nature of work, this sector is often kept outside the ambit of labour laws. Minimum Wage is one such prominent aspect wherein the labour sector is witnessed to be in a disadvantageous position. To begin with, the International Labor Office defines the term “Minimum Wage” as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, and which cannot be reduced by collective agreement or an individual contract.
    In order to take up this issue and rebut the contentions, the objects and positions of the labour rights and laws, as it is placed in the constitution, need first to be made clear. This piece, for various other reasons, is only concerned with the “unenforceable labour rights” contained under the Constitution of India; and makes arguments in favour of the court that how they have, over the years, endeavoured to give these provisions teeth to encroach upon the state’s arbitrariness and in turn to make them follow the constitutional mandate of social welfare. So, the question of whether India should adopt – in its substance – inter alia, the right to work, the right to a living wage, and the right to equal pay for equal work should be regarded as a question of law for the reason that it is a mandate addressed to the ‘State’ under relevant provisions of the Constitution of India. Besides, Articles 38, 39, 41, 42 and 43 have a noteworthy role in labour rights and laws, deriving their origin and philosophy from the Magna Carta of international industrial jurisprudence.

    Question - Which among the following has been incorporated by the Code on Wages, 2019, which was lacking in the earlier labour laws?

     

    Read the passage and answer the question that follow.

    In the recent past, lawmakers have made efforts in order to simplify the numerous existing legislation pertaining to Labor Law in India. One such legislation that has been assented by the Parliament is the Code on Wages, 2019. Since there is a shortage of employment in rural areas, such workers migrate to cities. Due to their casual nature of work, this sector is often kept outside the ambit of labour laws. Minimum Wage is one such prominent aspect wherein the labour sector is witnessed to be in a disadvantageous position. To begin with, the International Labor Office defines the term “Minimum Wage” as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, and which cannot be reduced by collective agreement or an individual contract.
    In order to take up this issue and rebut the contentions, the objects and positions of the labour rights and laws, as it is placed in the constitution, need first to be made clear. This piece, for various other reasons, is only concerned with the “unenforceable labour rights” contained under the Constitution of India; and makes arguments in favour of the court that how they have, over the years, endeavoured to give these provisions teeth to encroach upon the state’s arbitrariness and in turn to make them follow the constitutional mandate of social welfare. So, the question of whether India should adopt – in its substance – inter alia, the right to work, the right to a living wage, and the right to equal pay for equal work should be regarded as a question of law for the reason that it is a mandate addressed to the ‘State’ under relevant provisions of the Constitution of India. Besides, Articles 38, 39, 41, 42 and 43 have a noteworthy role in labour rights and laws, deriving their origin and philosophy from the Magna Carta of international industrial jurisprudence.

    Question - From the following, determine the specific labor law statute which has been enacted for the purpose of safeguarding the rights and interests of the workers.
    (1) To rectify the inequality of bargaining power between workers and employers through trade unions.
    (2) To encourage collective bargaining from a position of relative equality.

     

    Q3) Principle 1: According to Article 14 of the Indian Constitution, every citizen has a right to equality before the law and equal protection under the law.

    Principle 2: According to the Code on Wages Act of 2019, there cannot be any salary discrimination based on a person's gender.

    Facts: Both male and female engineers are employed by DEF Tech, a well-known tech company in Bengaluru. Despite having the same credentials and job duties as their male colleagues, female engineers are paid 20% less on average than their male counterparts, according to an internal audit. The CEO argues that this wage structure has always existed at the company, which explains the gap.

    Concepts Covered - 1

    Code on Wages Act 2019

    Background and Purpose of the Code on Wages Act:

    • The Code on Wages Act, 2019, is a significant labor legislation in India that was enacted to consolidate and simplify the various labor laws related to wages and bonus payments.
    • It seeks to provide a standardized framework for wage-related matters across sectors and promote the welfare of workers. 

    Provisions of the Code on Wages Act:

    • Universal Applicability: The Act applies to all employees across sectors and aims to simplify and standardize wage-related regulations. It replaces multiple wage-related laws, unifying wage laws into a single code.
    • Components of Wages: The Act defines various components of wages, such as basic pay, allowances, and bonuses. This definition ensures transparency in wage calculations and prevents the misclassification of components.
    • Payment of Wages: It mandates that wages should be paid at regular intervals, which may be daily, weekly, bi-weekly, or monthly, as specified by the appropriate government. This provision ensures timely payment of wages to workers.
    • Overtime: The Act prescribes rules for overtime work, specifying the maximum number of hours of overtime that can be worked and the rates at which overtime wages are to be paid.
    • Equal Remuneration: It prohibits discrimination in wages based on gender and mandates equal remuneration for equal work. This provision promotes gender equality in the workplace.
    • Payment of Bonus: The Act outlines guidelines for the payment of bonuses, including the calculation method and eligibility criteria. It aims to ensure that workers receive their fair share of profits.
    • Deductions: It specifies the permissible deductions from wages and prohibits unauthorized deductions. This protects workers from unfair wage deductions.

    Indian Constitution and the Code on Wages Act:

    The Code on Wages Act aligns with constitutional principles:

    • Directive Principles of State Policy (DPSP): The Act reflects the DPSP's commitment to securing just and humane conditions of work and ensuring fair wages for all workers. Article 43 of the DPSP emphasizes the importance of living wages and improving workers' living conditions.
    • Fundamental Rights: The Act is consistent with Article 39(d) and (e) of the Constitution, which emphasize equal pay for equal work and the protection of workers' rights.

    Case Law Example: Indian Bank Association v. Union of India (2020)

    • The case was filed by the Indian Bank Association, a body representing all commercial banks in India, challenging the delay in the disposal of cheque bounce cases.
    • The Supreme Court agreed with the Association and issued a set of guidelines to be followed by all courts in the country.
    • The guidelines include:
      • Immediate cognizance by the magistrate of complaints filed under Section 138 of the NI Act.
      • Issuance of summons to the accused by post and email.
      • Encouragement of compounding of offences at the first hearing.
      • Quick trial and disposal of cases within three months.
      • Option for the court to accept affidavits of witnesses, instead of examining them in court.
      • The Supreme Court's judgment in the Indian Bank Association case has been widely welcomed by the banking industry and has helped to improve the speed and efficiency of cheque bounce cases.
    • Here are some additional details about the key pointers:
      • Immediate cognizance by the magistrate of complaints filed under Section 138 of the NI Act. This means that the magistrate should take up the complaint and start the process of issuing summons to the accused as soon as it is filed. This will help to prevent delays in the case.
      • Issuance of summons to the accused by post and email. This will help to ensure that the accused is aware of the case and is able to appear in court.
      • Encouragement of compounding of offences at the first hearing. This means that the accused and the complainant can agree to settle the case without going to trial. This can help to speed up the disposal of cases.
      • Quick trial and disposal of cases within three months. This is a target that the courts should aim to achieve in order to dispose of cheque bounce cases expeditiously.
      • Option for the court to accept affidavits of witnesses, instead of examining them in court. This can help to save time and resources, as the court will not have to arrange for the witnesses to appear in court.

    Practical Example:

    Consider a manufacturing company with both male and female employees. The Code on Wages Act ensures:

    • The company calculates wages transparently, incorporating basic pay, allowances, and bonuses, with no discrimination based on gender.
    • Wages are paid at regular intervals as specified by the appropriate government.
    • Overtime work is compensated according to the Act's guidelines, ensuring that employees are fairly rewarded for additional work.
    • Deductions from wages are made only as per the Act's provisions, safeguarding workers' rights.

     

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