Section 69: Repeal and savings

Finin2min analysis — what the section actually does

Full statutory text — Section 69

69. Repeal and savings.—(1) The Payment of Wages Act, 1936 (4 of 1936), the Minimum Wages
Act, 1948 (11 of 1948), the Payment of Bonus Act, 1965 (21 of 1965) and the Equal Remuneration Act,
1976 (25 of 1976) are hereby repealed.
    (2) Notwithstanding such repeal, anything done or any action taken under the enactments so repealed
including any notification, nomination, appointment, order or direction made there under or any amount
of wages provided in any provision of such enactments for any purpose shall be deemed to have been
done or taken or provided for such purpose under the corresponding provisions of this Code and shall be
in force to the extent they are not contrary to the provisions of this Code till they are repealed under the
corresponding provisions of this Code or by the notification to that effect by the Central Government.
   (3) Without prejudice to the provisions of sub-section (2), the provisions of section 6 of the General
Clauses Act, 1897 (10 of 1897) shall apply to the repeal of such enactments.

                             STATEMENT OF OBJECTS AND REASONS
   The Second National Commission on Labour, which submitted its report in June, 2002, had
recommended that the existing set of labour laws should be broadly amalgamated into the following
groups, namely:—
      (a) industrial relations;
      (b) wages;
      (c) social security;
      (d) safety; and
      (e) welfare and working conditions.
    2. In pursuance of the recommendations of the said Commission and the deliberations made in the
tripartite meeting comprising of the Government, employers' and industry representatives, it has been
decided to bring the proposed legislation. The proposed legislation intends to amalgamate, simplify and
rationalise the relevant provisions of the following four central labour enactments relating to wages,
namely:—
      (a) the Payment of Wages Act, 1936;
      (b) the Minimum Wages Act, 1948;
      (c) the Payment of Bonus Act, 1965; and
      (d) the Equal Remuneration Act, 1976.
    3. The amalgamation of the said laws will facilitate the implementation and also remove the
multiplicity of definitions and authorities without compromising on the basic concepts of welfare and
benefits to workers. The proposed legislation would bring the use of technology in its enforcement. All
these measures would bring transparency and accountability which would lead to more effective
enforcement. Widening the scope of minimum wages to all workers would be a big step for equity. The
facilitation for ease of compliance of labour laws will promote in setting up of more enterprises thus
catalyzing the creation of employment opportunities.
   4. The salient features of the Code on Wages, 2019, inter alia, are as follows:—
      (a) it provides for all essential elements relating to wages, equal remuneration, its payment and
   bonus;
      (b) the provisions relating to wages shall be applicable to all employments covering both organised
   as well as un-organised sectors;
       (c) the power to fix minimum wages continues to be vested in the Central Government as well the
   State Government in their respective sphere;
      (d) it enables the appropriate Government to determine the factors by which the minimum wages
   shall be fixed for different category of employees. The factors shall be determined taking into account
   the skills required, the arduousness of the work assigned, geographical location of the workplace and
   other aspects which the appropriate Government considers necessary;
       (e) the provisions relating to timely payment of wages and authorised deductions from wages,
   which are presently applicable only in respect of employees drawing wages of twenty-four thousand
   rupees per month, shall be made applicable to all employees irrespective of wage ceiling. The
   appropriate Government may extend the coverage of such provisions to the Government
   establishments also;
       (f) it provides that the wages to employees may also be paid by cheque or through digital or
   electronic mode or by crediting it in the bank account of the employee. However, the appropriate
   Government may specify the industrial or other establishment, where the wages are to be paid only by
   cheque or through digital or electronic mode or by crediting the wages in the bank account of the
   employee;

      (g) it provides for floor wage for different geographical areas so as to ensure that no State
   Government fixes the minimum wage below the floor wage notified for that area by the Central
   Government;
      (h) in order to remove the arbitrariness and malpractices in inspection, it empowers the appropriate
   Government to appoint Inspectors-cum-Facilitators in the place of Inspectors, who would supply
   information and advice the employers and workers;
      (i) it empowers the appropriate Government to determine the ceiling of wage limit for the purpose
   of eligibility of bonus and calculation of bonus;
       (j) in the place of number of authorities at multiple levels, it empowers the appropriate Government
   to appoint one or more authorities to hear and decide the claims under the proposed legislation;
      (k) it enables the appropriate Government to establish an appellate authority to hear appeals for
   speedy, cheaper and efficient redressal of grievances and settlement of claims;
      (l) it provides for graded penalty for different types of contraventions of the provisions of the
   proposed legislation;
       (m) it provides that the Inspector-cum-Facilitator shall give an opportunity to the employer before
   initiation of prosecution proceedings in cases of contravention, so as to comply with the provisions of
   the proposed legislation. However, in case of repetition of the contravention within a period of five
   years such opportunity shall not be provided;
      (n) it provides for the appointment of officers not below the rank of Under Secretary to the
   Government of India or an officer of equivalent level in the State Government to dispose of cases
   punishable only with fine up to fifty thousand rupees, so as to reduce the burden on subordinate
   judiciary;
      (o) it provides for compounding of those offences which are not punishable with imprisonment;
      (p) it provides that where a claim has been filed for non-payment of remuneration or bonus or less
   payment of wages or bonus or on account of making deduction not authorised by the proposed
   legislation, the burden shall be on the employer to prove that the said dues have been paid to the
   employee;
      (q) it enables the appropriate Government to constitute Advisory Boards at Central and State level
   to advice the Central Government and the State Governments, respectively, on matters relating to
   wages, women employment, etc.;
       (r) the period of limitation for filing of claims by a worker has been enhanced to three years, as
   against the existing time period varying from six months to two years, to provide a worker more time
   to settle his claims.
   5. The Code on Wages, 2017, on similar lines, was introduced and referred to the Department-related
Parliamentary Standing Committee on Labour, which submitted its forty-third Report on 18th December,
2018. However, before the said Bill could be passed in the said House, it lapsed on dissolution of the
Sixteenth Lok Sabha. Hence, the Code on Wages, 2019.
   6. The Notes on Clauses explain in detail the various provisions contained in the Bill.
   7. The Bill seeks to achieve the above objectives.

                                                                                 SANTOSH GANGWAR.

  NEW DELHI;
The 18th July, 2019.

How to apply this provision

1. Primary statutory test — (2) Notwithstanding such repeal, anything done or any action taken under the enactments so repealed including any notification, nomination, appointment, order or direction made there under or any amount of wages provided in any provision of such enactments for any purpose shall be deemed to have been done or taken or provided for such purpose under the corresponding provisions of this Code and shall be in force…
2. Additional operative limb — (3) Without prejudice to the provisions of sub-section (2), the provisions of section 6 of the General Clauses Act, 1897 (10 of 1897) shall apply to the repeal of such enactments.
3. Numerical or timing control — (e) the provisions relating to timely payment of wages and authorised deductions from wages, which are presently applicable only in respect of employees drawing wages of twenty-four thousand rupees per month, shall be made applicable to all employees irrespective of wage ceiling.
4. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Worker, Appropriate Government, Central Government, State Government.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 69

Source & verification trail