Section 10: Wages of employee who works for less than normal working day

Overview

This section of the Code on Wages, 2019, deals with the payment of wages to employees who work for a period shorter than what is considered a ‘normal working day’. It ensures fair compensation even when an employee doesn’t complete their usual hours of work.

Scope and Coverage

• Which employees and establishments are covered: This section applies to all employees covered under the Code on Wages, 2019, regardless of the type of work (skilled, unskilled, manual, etc.) and the sector they work in. This includes employees working in both organized and unorganized sectors.
• Any thresholds or exclusions: There are no specific thresholds or exclusions mentioned in Section 10 itself. However, the overall applicability of the Code on Wages depends on the establishment’s registration and the employee’s wage ceiling (as defined elsewhere in the Code).

Key Obligations and Rights

• Main duties of employers: Employers are obligated to pay wages to employees who work for less than a normal working day, calculated proportionally to the time worked. The method of calculation should be fair and transparent.
• Important rights or protections for employees: Employees have the right to receive wages for any time they have worked, even if it’s less than a full day. They are entitled to the same wage rate as they would receive for a full day’s work, pro-rated for the hours actually worked.

Compliance and Penalties

Violations of this provision can lead to inspections by Labour Inspectors. If an employer is found to be underpaying employees for shorter working days, they can face penalties, including fines and potential prosecution. Repeated or serious violations can result in more severe consequences.

Practical Examples

• Example 1 from a typical workplace: A daily wage worker normally works 8 hours a day for ₹500. If they only work for 4 hours on a particular day due to unforeseen circumstances, their wage for that day should be ₹250 (₹500 / 8 hours * 4 hours).
• Example 2 for a borderline scenario: An employee’s normal working day is 9 hours. If they work for 8.5 hours, the employer must calculate their wage based on the proportion of time worked, ensuring they receive fair compensation for the 8.5 hours.