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The burden of compliance is huge is the conventional wisdom. The Code on Wages insulates the principal employer from liabilities and shifts accountability, in the case of irregularities, to contractors supplying workers. This is at least what the Bill asserts. Other experts have pointed out loopholes in the bills, which tilt the balance in favour of employers rather than those they are supposedly intended to benefit. The fourth point that must be highlighted is that the new code seeks to achieve a large number of objectives. Instead of a universal national wage standard, the centre has created another complicated structure like the GST. The Directive Principles of the Constitution already encourage the state to work for higher than minimum wages.
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This is a laudatory statement but remains merely an expression. A well-intentioned and brave step but rendered ineffective through multiple, vague, and lofty goals. But Jeet Singh Mann, a labour law expert who teaches at the National Law University, Delhi, argues that employers cannot take advantage of such semantics.
A mandated minimum wage will hopefully reduce these glaring inequities. The new proposed law will consolidate all central laws into four codes-wages, industrial relations, social security, and industrial safety and welfare.
He adds that Section 20 of the Code on Wages Bill, allows an employer to deduct eight days of wages if an employee stays absent without notice for just one day.
It then goes on to do what the extant Central Advisory Council was doing—recommending a fair wage.
1 day ago Asian News International. London. Bob Blackman said that India has a long- established tradition of respecting different faiths and religions. 2 days ago It is widely acknowledged that India has a serious wages problem.
Video: Labour news india Government announces 42% increase in minimum wages to Rs 350 a day
the wage may even go down to a miserable ₹20 a day in times of poor demand. The 15th Indian Labour Conference more than 60 years ago suggested.
In sharp contrast to the preceding discussion on making market-friendly laws, the Bill came out forcefully arguing for actually increasing the cost of doing business by increasing wage costs.
Video: Labour news india PM Modi speaks about Labours Welfare - Indian Labour Conference - Mango News
Apprentices, for example, will no longer be considered employees though they often do the work assigned to contractual or permanent workers. Rather than state governments like Gujarat, Maharashtra, Andhra Pradesh and Karnataka mandating jobs quota for locals, they could actually provide wage support to companies, thus incentivising investment and local hiring, while keeping wage bills low for firms operating in competitive environments.
Instead of giving us a single and low tax rate, it gave way to a complicated set of five different tax rates.
Why minimum wage won’t fix India’s woes
This is where the major problem with compliance will come up, leading to the threat of harassment from labour officials. For instance, 'wages' alone has 11 definitions under different laws.