Section 42: Central Advisory Board and State Advisory Boards

Overview

Section 42 of the Code on Wages, 2019, deals with the creation of advisory bodies – the Central Advisory Board and State Advisory Boards. These boards are designed to provide expert advice to the Central and State Governments on how to effectively implement and administer the Code, ensuring fair wages and working conditions for all workers.

Scope and Coverage

• Employees Covered: This section impacts all employees covered under the Code on Wages, including those receiving wages through various methods (daily, monthly, piece rate, etc.). It applies to workers in all sectors, organized and unorganized.
• Establishments Covered: All establishments covered under the Code – factories, shops, establishments employing a certain number of workers (thresholds vary based on state rules) – are indirectly affected as the Boards advise on policies impacting them.
• Thresholds or Exclusions: There are no direct thresholds or exclusions related to the *existence* of the Boards. However, the specific advice and regulations stemming from the Boards will apply based on the thresholds and coverage defined elsewhere in the Code for specific wage-related provisions (like minimum wage).

Key Obligations and Rights

• Main duties of Employers: Employers don’t have *direct* obligations under Section 42. However, they are indirectly impacted as the Boards’ advice shapes the rules they must follow regarding wage payment, minimum wages, bonuses, and deductions. Employers are expected to comply with the regulations formulated based on the Boards’ recommendations.
• Important rights or protections for Employees: Employees benefit from the existence of these Boards as they ensure a platform for expert advice to the government. This leads to better wage policies, fair implementation of wage laws, and ultimately, stronger protection of their wage-related rights. The Boards can consider worker perspectives when advising the government.

Compliance and Penalties

Section 42 itself doesn’t carry direct penalties for non-compliance. However, if employers violate regulations *based on* the advice of the Advisory Boards (e.g., paying less than the recommended minimum wage), they will be subject to the penalties outlined in other sections of the Code on Wages. These penalties can include fines, imprisonment, or both, and may be enforced through inspections by Labour Inspectors.

Practical Examples

• Example 1: A State Advisory Board recommends increasing the minimum wage for garment workers in a particular region. Employers in that region are legally obligated to pay at least the newly recommended minimum wage. Failure to do so will result in penalties.
• Example 2: A Central Advisory Board advises the government on simplifying the process for claiming bonus payments. The government implements these recommendations, making it easier for workers to receive their legally entitled bonuses.