Section 59: Power to issue directions

Overview

Section 59 of the Code on Wages, 2019, deals with the Central Government’s authority to ensure the Code is properly implemented across all states. It doesn’t directly relate to wage calculation, payment, or bonuses, but rather focuses on the *how* of making sure wage-related laws are followed consistently nationwide.

Scope and Coverage

• This section applies to all State Governments. It’s about the Central Government’s power *over* the states regarding this Code.
• It covers the implementation of the entire Code on Wages, 2019, meaning all provisions related to minimum wages, payment of wages, bonuses, deductions, etc.
• There are no specific thresholds or exclusions regarding which establishments or employees are covered by this section itself; it’s about the overarching implementation process.

Key Obligations and Rights

• Obligation of State Governments: State Governments are obligated to act upon directions issued by the Central Government to effectively implement the Code. This means they must take necessary steps to enforce the provisions of the Code within their jurisdiction.
• Right of Workers (Indirect): While not a direct right, this section strengthens workers’ rights by ensuring the Code is consistently applied across India. A uniform implementation means workers in all states are entitled to the same minimum standards.
• Obligation of Central Government: The Central Government has a duty to issue directions only for the *effective* implementation of the Code. This implies directions must be reasonable and related to achieving the Code’s objectives.

Compliance and Penalties

This section doesn’t directly impose penalties on employers or employees. However, if a State Government fails to comply with directions issued by the Central Government under Section 59, it could face scrutiny and potentially loss of central funding related to labor welfare schemes. Employers will still be subject to penalties under other sections of the Code if they violate specific wage-related provisions, and the State Government is responsible for enforcing those penalties.

Practical Examples

• Example 1: The Central Government notices that several states are not regularly updating their minimum wage rates as required by the Code. Under Section 59, it can issue directions to those states to revise their minimum wages within a specified timeframe.
• Example 2: A new type of work arrangement (e.g., gig work) emerges, and there’s ambiguity on how the Code applies. The Central Government can issue directions to all State Governments clarifying how the Code should be interpreted and implemented for such arrangements, ensuring consistent treatment of workers.