The salient features and implementation of - PowerPoint Presentation

1. The salient features and implementation of The Code on Wages, 2019 & The Code on Industrial Relations 2020Dr. G. MANJUNATH, KLS, PhDAdditional Labour CommissionerGovernment of KarnatakaEmail id: manju_alc@yahoo.co.inWebsite: http://drmanjunathg.in

2. The code on wagesThe OSH codeThe code ONSOCIAL SECURITYThe code on INDUSTRIAL RELATIONLABOUR CODES7/31/20212

3. THE CODES ON WAGES, 2019An Act of Parliament received the assent of the President on 8th Aug 2019To consolidate & amend laws relating to:Wages; (MW act & PW act)Bonus & Equal remunerationDraft Rules by Govt. of Karnataka 2.03.2021Final Notification awaited.37/31/2021

4. Code on Wages vs. Repealed EnactmentsACTDEFINITIONSSECTIONSSCHEDULESRULESFORMS/NOTIFICATIONSMW ACT(1948)1131137PW ACT(1936)1026-40PB ACT(1965)224045ER ACT(1976)1018-6TOTAL53114588COW (2019)2669-58I to VIA to E Schedules47/31/2021

5. The Code on Wages , 2019Key Actors:Employer : 169Employee: 218Worker : 18Central Govt: 40App. Govt: 104 7/31/20215

6. Important DefinitionsWho is not a Contract Labour?A worker who is regularly employed by the Contractor for any activity of his establishment and his employment is governed by mutually accepted standards of the conditions of employment (including engagement on permanent basis) &Gets periodical increment in the pay, social security coverage and other welfare benefits in accordance with the law for the time being in force in such employment.67/31/2021

7. INTER STATE MIGRANT WORKER ARE CONTRACT LABOURPART-TIME EMPLOYEE ARE CONTRACT LABOUR77/31/2021Contract Labour Includes

8. Who is not a ‘worker’?Defense personnelPolice and Prison serviceManagerial and administrative employeesSupervisory employees drawing wage of more than Rs. 15k per month…-----------------------------------------‘Worker’Also includes:Working journalistsSales promotion employees87/31/2021

9. Criteria for fixation of MW Skill of workers required for working under various categories like unskilled, skilled, semi-skilled & highly skilled or geo’l areaTake into account their arduousness of work…hazardous occupations or processesRule 3 of Karnataka RulesCentral Government to fix National Floor wageScheduled Employment removed/Power of State Govt. to add to schedule is removed. IMPACTProcedure for fixing/revising MWCommittee method (Tripartite Body appointed by SG)Notification method97/31/2021

10. Eligibility and Payment of BonusCeiling limit yet to be notified30 days of work in an accounting yearAnnual minimum bonus 8.33%Annual maximum bonus 20%Can ex-gratia or total bonus payable exceed 20% ?-NO. (S. 26(5)107/31/2021

11. Inspections & ComplianceThe code provides for:Inspection scheme to be notified by the GovtWeb-based InspectionCalling of information electronicallyRandomized selection of inspectionRegulation of InspectionsInspector-cum-facilitator to advice employers and workers relating to compliance Inspections are subject to instructions and guidelines issued by the government117/31/2021

12. Substantial compliance under the CodeEvery Employer SHALL pay all amounts required to be paid under this code to every employee employed by him.NOT to discriminate among employees on the ground of gender with regard to wages in respect of the same work or work of a similar nature NOT to reduce the rate of wages NOT to make any discrimination on the ground of gender while recruiting127/31/2021

13. Substantial compliance under the CodePaying wages less than the minimum rate of wages notified by the appropriate Government.Pay overtime rate which is twice the normal rate of wagesPay wages in:current coincurrency notes cheque crediting the wages in the bank account electronic mode. Pay Wages within two working days of removal, dismissal, retrenchment or resignation of an employee 137/31/2021

14. Substantial compliance under the CodeShall deduct from wages only in accordance with the provisions of the code & only for the purposes mentioned.Shall NOT commit any default after deducting from the wages & not depositing in SS accountShall NOT impose any fine without the previous approval of the App Govt. or of such authority prescribed. (S. 19)147/31/2021

15. Procedural complianceEvery employer to whom this code applies shall maintain:A register containing the details of persons employedMuster rollWages & such other details in the prescribed mannerDisplay notice of the abstract of the code, category-wise wage rates of employees, wage periodday and date time of payment of wagesIssue wage slips The names and addresses of the Inspector-cum Facilitator having jurisdiction157/31/2021

16. Provision for wages for certain categories For those employees who are DismissedRetrenchedResigned Rendered unemployed due to closure of the establishmentThe wages payable to him shall be paid within two working days…Persons who can file ‘claims’ under the Code:Employee concernedTrade union duly registered Inspector-cum facilitator16Time limit for filing claims is 3 yearsAppeal within 90 days of the orders Appeal to be disposed off within 3 months.7/31/2021

17. Who can file cases in the Court of Law?A complaint has to be made by or under the authority of the governmentAn officer so authorized by the GovernmentAn employeeA registered trade unionInspector-cum-facilitator177/31/2021

18. Provisions of Indian Penal Code, 1860 Any person required to produce any Documents /information to I-C-F shall be deemed to be legally bound within the meaning of S. 175 & S. 176 of the IPCS. 175.Omission to produce document or electronic record to pubic servant by person legally bound to produce it.S. 176. Omission to give notice or information to public servant by person legally bound to give it.S. 94 of CRPc, 1973 is applicable u/s 51(8) (Powers of ICUMF)S. 94. Search of place suspected to contain stolen property, forged documents, etc-187/31/2021

19. Penalties for offences under the CodeFor Substantial violations:Punishable with fine up to Rs 50,000; Repeated offence <5 yrs punishable with imprisonment for a term up to 3 months or with fine up to Rs one lakh;Contravenes any provision, rules, order made punishable with fine up to Rs 20,000;Repeated offence <5 yrs punishable with imprisonment for a term up to one month or fine up to Rs 40,000 or with both;For Procedural violations:Non-maintenance or improper records, punishable with fine up to Rs 10,000197/31/2021

20. Compounding of Offence under the CodeAn offence not being an substantial offence- the code provides for compounding of offenceGazetted Officer so appointed will have powers to levy a sum 50% of maximum fine provided for such offenceNo prosecution if an offence is been compounded and any pending procedure before any court, intimation to be given by the Gazetted officer and the employer may be discharged 207/31/2021

21. Burden of ProofWhen a claim is made before any authority against the employer for:Non-payment of equal remuneration Non-payment of bonusLess payment of wagesLess payment of bonusMaking un-authorized deductions from the wages of an employeeThen the burden of prove that the said dues have been paid shall be on the Employer.217/31/2021

22. Exemption of employer from liability When an employer is charged with an offence under this Code:He is entitled under this code to make a complaint before the court against any other person whom he charges to be the actual offender.Employer then has to prove to the satisfaction of the court that-Due diligence was used by him to execute the codeThe other person committed the offence without his knowledge, consent or connivanceHowever, employer will be examined on oath, examination of evidence and witnesses and cross-examination procedures shall be followedThereafter, the employer shall be discharged from any liability under this code.227/31/2021

23. MiscellaneousFixation of MW to be kept at the minimum Disqualification for Bonus- Conviction for Sexual HarassmentChapter on Bonus applicable to establishments employing 20 or more personsCAB/SAB to advise on providing increasing employment opportunities for womenDiscretionary powers to levy compensation up to10 times in addition to the claims determined. IMPACTClaims can be filed by the concerned employee ;TU; ICF within three years time period.Disputes pertaining Bonus is considered an ID237/31/2021

24. THE I R Codes vs. Repealed EnactmentsACTDEFINITIONSSECTIONSSCHEDULESRULESFORMS/NOTIFICATIONST U A, 1926835I -III3/21A - FIE(S0) A, 1946920Two Schedules2/11I - IIII D A, 1947408459/93A-QBTOTAL571391014/125IR CODE, 20204410435/59Forms 34247/31/2021

25. Definitions:S 2(l) ‘employee’ – introduced for the first timeS 2(m) ‘employer’ – Definition is enlarged & includes:Contractor;Legal reps of a deceased employer.S 2(o) ‘Fixed term employment’ –important 3 provisos are provided. (Working & service conditions, statutory benefits & gratuity) IMPACTS 2(p) ‘industry’ – elaborate & given effect in the code which was pending since 1982.Inclusion (a) & (b) removedExclusion out of 9 items in the original ID act only 3 finds its place, most important exclusion is domestic service, however CG has powers to exclude any other activity.257/31/2021

26. Definitions:S 2(zq) ‘wages’, same as in code on wages, newer interpretation, 11 items are excluded. IMPACTS 2(zr) ‘worker’ – defined for the first time, instead of workman. (excludes apprentices as defined under AA) & includes: working journalists;sales promotion employees; workers who are terminated; supervisory workers drawing more than 18 k are excluded267/31/2021

27. Grievance Redressal CommitteeSetting up of GRMVery significant changes & differences u/s 9-C of ID act (2010)11 sub-sections No of members is now 10, earlier 6.Aggrieved Worker with individual grievance may file an application before GRC within one year from the date of cause of action of such disputeGRC to conduct its proceedings within 30 daysDecision making process is explained in detail. (R.7)Worker can seek an appeal if not satisfied with the decision of the GRC, within 60 days & file an application before the conciliation officer through the Trade Union.A worker can also directly approach Tribunal for adjudication of the dispute after the expiry of 45 days from the date he has made an application to the conciliation officer.IMPACT: Worker can seek Redressal of his individual dispute FIRST at GRC THEN to CO, Tribunal277/31/2021

28. GRC and WC28Functions:Resolution of disputes arising out of individual grievances.Empowered to raise the dispute before GRC, Conciliation officer, or directly to Tribunal.Institutional mechanism to resolve individual disputes within the industry.(Similar to ICC under POSH Act, 2013)Functions:To promote measures for securing and preserving amity and good relations b/n employer & workersTo comment upon matters of their common interest/concernEndeavour to compose any material difference of opinion in respect of such matters7/31/2021

29. Trade Unions what is new?A declaration to be made by an affidavit while Applying for registrationCopy of the resolution of members of each TUs agreeing to constitute a federation Deemed registration under the code (9(4) & provisoAppeal is with the TribunalObjects of general and separate funds now delegated to appropriate Govt. Adjudication of disputes of Trade Unions (22) to TribunalsNo mention of council of ministers or office of profit becoming executive OR office-bearers of TA297/31/2021

30. Negotiating union or negotiating councilVery significant changesMatters for negotiation (Draft Central & State Rules)If only one TU is registered then the employer shall recognize such TU as a sole negotiating unionMore than one TU…51% or more workers supporting to be verified More than one TU…but less than 51%, employer to constitute a NC consisting of reps from registered TUs having not less than 20% of support from workers…Statutory responsibility is on the employers.3 years of recognition, but extendable up to 5 years if mutually decided. Facilities to be extended by the employer to the NU or NC. IMPACT307/31/2021

31. STANDING ORDERSSubstantial changesCode applies this chapter to 300 or more workers IMPACTProviso providing power to the app. Govt. to reduce the number of workers is withdrawn.Sub-section (2) added for exclusions under the codeDraft Model standing orders notified by the Central Govt. for: (S.29)Service sector on 31.12.2020Manufacturing sector on 31.12.2020Mines on 31.12.2020First Schedule –Matters specified 317/31/2021

32. Procedure for certificationSubstantial changesEmployer to consult TUs or recognized NU or member of the NC. Reps of workmen removed. IMPACTElectronic submission allowed Model standing shall be deemed to be certified & employer shall forward this to the CO.(30(3)CO to issue notice not forwarding the copy.CO to seek comments, not objections.Time frame fixed for certification process, ie 2 months, otherwise it will be deemed certified.Joint submission of standing orders allowed.If the existing SO is consistent with codes/rules, it is deemed certified u/s 8. (S.30(11).327/31/2021

33. Time-limit for completing disciplinary proceedings & liability to pay subsistence allowanceSubstantial changesTime-frame fixed at 90 days to complete investigation or enquiry from the date of suspension IMPACTDisputes regarding subsistence allowance removedNotice of Change (9-A vs. 40)Substantial changesNo notice is required under two additional proviso:emergent situation which requires change of shift or shift working,…in consultation with GRCIn accordance with the orders of the app. Govt. or in pursuance of any settlement or awardPower of App. Govt. to exempt the provisions of section 40 is retained.337/31/2021

34. Conciliation and adjudication of disputeSubstantial changesUnder the code no notice of strike/lockout under PUSTime limit to file an industrial dispute is two years.Failure report to be sent to the Govt. as well as to the parties concerned. (Ref by Govt removed) IMPACTReport to be sent within 45 days, earlier 14 days removed.Proviso for sending report under sec. 62 is 14 days.53(6) is new inclusionEither parties can approach the Tribunal directly within 90 days on receiving the report on matters not settled. IMPACT347/31/2021

35. Industrial TribunalSubstantial changesSchedules removed under the code IMPACTOne person is replaced now by two members one Judicial and Administrative Member.Cases to be decided by IT by both the members are provided under sub-section (7)(i) to (e). Other cases to be decided by either JM or AM.Decision of Tribunal shall be by consensus of the members…differences in any point/points shall be referred to Govt, who shall appoint a JM to decide on the basis of majority. (S. 47) IMPACT357/31/2021

36. Form of award, its communication & commencementSubstantial changesAward may be signed electronically.No dissent possible under the code.Publication not required.Award to be sent to concerned parties & the app. Govt directly by Tribunal.Award enforceable from expiry of 30 days of communication to the parties.367/31/2021

37. Commencement and conclusion of proceedingsSubstantial changesCommencement of conciliation proceedings under the code is on the date of the first meeting held by the conciliation officer.Conclusion of conciliation proceedings is on the date of failure of conciliation recorded by the CO deviation from the Act.377/31/2021

38. Prohibition of strikes and lockoutsSubstantial changesPublic Utility Services deleted IMPACTSix weeks notice replaced by 60 days before striking or lockout.Within 14 days of giving such noticeSub-sections (e), (f) & (g) added 387/31/2021

39. SPECIAL PROVISIONS RELATING TO LAY-OFF, RETRENCHMENT & CLOSURE IN CERTAIN ESTABLISHMENTSSubstantial changesNumber of workers increased from 100 to 300 under the code.App. Govt may notify such higher numbers of workers than 300.Unfair Labour Practices (Schedule V vs. II)On the part of the workers and Trade Unions of workers. (Explanation included)“go-slow” shall mean an occasion when more than one worker on an establishment conjointly work ore slowly and with less effort than usual to try to persuade the employer of the establishment to agree to higher pay or better service condition or such other demand.“usual’ mean-Where the standard has been specified for a worker for his work either daily, weekly ore monthly basis &…or such rate of work which is the average of work for the previous three months397/31/2021

40. Cognizance of Offence and Composition of offencesAbatement of such offence has been left out (S.87)Composition of offences included (S.89)Power to exempt (S. 36-B (1984) vs.96)Exemptions may be provided for new industrial establishments or new undertakings or class of new industrial establishments IMPACTJurisdiction of civil courts barred and no injunctions possible.407/31/2021

41. Dr. G. MANJUNATH, KLS, PhDAdditional Labour CommissionerGovernment of KarnatakaEmail id: manju_alc@yahoo.co.inWebsite: http://drmanjunathg.in/

42. This Presentation was designed by IT partner Sanna Innovations – A Creative and an innovative IT company. 427/31/2021