Draft Gujarat Code on Wages Rules, 2021

Apr 07, 2021 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Ministry of Labour and Employment on March 31, 2021 has issued draft Code on Wages (Gujarat) Rules, The Objective of the rule is to regulate the provisions for minimum wages and to ensure a well-timed payment of minimum wages for all workers.   The draft rules are in supersession of following rules:

• The Payment of Wages (Procedure) Rules, 1937;

• The Gujarat Payment of Wages Rules 1963;

• The Gujarat Payment of Wages (unclaimed Amounts) Rules 1963; 

• The Gujarat Payment of Wages Deductions for National Defence Fund & Defence Savings Scheme) Rules, 1964:

• The Payment of Wages (Manner of recover of excess deductions) Rules, 1967;

• The Gujarat Minimum of Wages Rules, 1961;

• The Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017

The provisions made under the rule are as follows: - 

• Definition of Unskilled, Semi-skilled, Skilled & Highly Skilled Workers.

(i)  Unskilled: An unskilled employee is one who does operations that involve the performance of simple duties, which require the experience of little of no independent judgment or previous experience although familiarity with the occupational environment is necessary. His work may thus require in addition to physical exertion familiarity with variety of articles or goods.

(ii)  Semi-skilled: A semiskilled worker is one who does work generally of defined routine nature wherein the major requirement is not so much of the judgment, skill and but for proper discharge of duties assigned to him or relatively narrow job and where important decisions made by others. His work is thus limited to the performance of routine operations of limited scope.

(iii) Skilled: A skilled employee is one who is capable of working efficiently of exercising considerable independent judgement and of discharging his duties with responsibility. He must posses a thorough and comprehensive knowledge of the trade, craft or industry in which he is employed.

(iv) Highly Skilled: A highly skilled worker is one who is capable of working efficiently and supervises efficiently the work of skilled employees.

• Wages per month are calculated as 4.33 times if a weekly wage is defined. It is calculated as 4.33 times the standard hours per week if an hourly wage is given.

• Manner of calculating the minimum rate of wages in which wages shall be fixed on the day basis with the prescribed criteria. 

• Number of hours of work which shall constitute a normal working day.

• Weekly day of rest, which shall ordinarily be Sunday, but the employer may fix any other day of the week as the rest day for any employee or class of employees.

• Time interval for revision of dearness allowance, number of Hours of work which shall constitute a normal working day, intimation of deduction 

• Provisions relating to equal remuneration now prescribe that no discrimination is permitted based on the gender of said employees. This is slightly wider than the earlier provision which specified no discrimination based on “Men” and “Women”.

• Government to appoint Inspectors-cum-Facilitators (in the place of Inspectors), to carry out inspections. Such Inspectors-cum-Facilitators may advise employers and employees for better compliance. This has been done with the objective of removing the arbitrariness and malpractices in inspection. The quantum of penalties specified under the code is also significantly high which varies depending on the nature of the offence. The maximum penalty being imprisonment for three months and/ or with a fine of up to INR 100,000.

All persons likely to be affected thereby and notice is, hereby given that the said draft rules shall be taken into considerations after the expiry of Forty-five days from the date on which the copies of the published notification shall be made available in the Official Gazette. Objections and suggestions if any shall be addressed to Deputy Secretary, Government of Gujarat, Labour and Employment Department, Block No.5, 6th Floor, New Sachivalaya, Gandhinagar or by email [email protected] 

[Notification no. KHR/2021/29/LVD/10/2020/555709/M(2)]



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