Section 58: Power to make rules

Overview

Section 58 of the Code on Wages, 2019, doesn’t directly deal with wage calculation or payment. Instead, it’s about *how* the entire Code will be put into practice. It gives the government the authority to create detailed rules and regulations to ensure the Code’s provisions – covering minimum wages, payment methods, bonuses, and deductions – are effectively implemented and enforced.

Scope and Coverage

• This section applies to all establishments and employees covered under the Code on Wages, 2019. This includes workers in all sectors, organized and unorganized, across India.
• There are no specific thresholds or exclusions relating to the application of Section 58 itself. It empowers rule-making for the entire Code.

Key Obligations and Rights

• Main duty of Employers: Employers are obligated to comply with the rules made under Section 58 once they are notified by the government. This includes maintaining required records, using prescribed forms, and following specified procedures.
• Important rights/protections for Employees: While this section doesn’t directly grant new rights, it ensures the Code’s provisions (like minimum wage and timely payment) are properly implemented through clear rules, ultimately protecting employee rights. Clear rules mean less ambiguity and easier enforcement of rights.

Compliance and Penalties

If employers fail to comply with the rules made under Section 58 (e.g., not maintaining proper records as per the rules), they can face inspections by labour authorities. Violations can lead to penalties, including fines and, in some cases, imprisonment, as specified in other sections of the Code on Wages, 2019. The specific penalties will depend on the nature of the violation and the rules established by the government.

Practical Examples

• Example 1: The Central Government makes a rule specifying a standard form for employers to submit annual wage reports. An employer fails to use this form and submits a report in a different format. This is a violation of the rules made under Section 58 and could result in a penalty.
• Example 2: A State Government creates a rule detailing the specific procedure for filing a complaint regarding delayed wage payment. An employee follows a different, older procedure (from before the Code) and their complaint is initially dismissed. The government rule clarifies the correct procedure, ensuring the employee’s right to file a complaint is protected.