Section 61: Repeal and savings

Overview

Section 61 of the Code on Wages, 2019, deals with the cancellation (repeal) of several older laws related to wages, bonuses, and equal pay. It essentially consolidates these laws under the new Code. Importantly, it also ensures that actions already taken under the old laws remain valid (savings).

Scope and Coverage

• This section applies to all employees and establishments across India, as it concerns the legal framework itself, not specific employment terms.
• There are no thresholds or exclusions regarding which employers or employees this section affects – it’s a broad legal change.

Key Obligations and Rights

• Employer Obligation: Employers must understand that the rules governing wages, bonuses, and equal remuneration are now primarily found within the Code on Wages, 2019, and related rules. They need to update their policies and practices accordingly.
• Employee Right: Employees retain the benefits and rights they accrued under the repealed Acts. For example, if an employee had a pending claim under the Payment of Wages Act, 1936, that claim isn’t lost; it will be handled under the ‘savings’ provision.

Compliance and Penalties

This section doesn’t directly impose new penalties. However, failing to comply with the new provisions of the Code on Wages, 2019 (which replace the repealed Acts) will attract penalties as outlined within the Code itself. Inspections will focus on compliance with the Code, not the old laws. Continuing to operate under the repealed Acts could lead to non-compliance with the Code and subsequent penalties.

Practical Examples

• Example 1: A factory worker previously covered by the Minimum Wages Act, 1948, continues to be entitled to a minimum wage, but now the minimum wage is determined and enforced under the Code on Wages, 2019.
• Example 2: A company was sued under the Payment of Wages Act, 1936, before the Code on Wages came into effect. The lawsuit will continue, but it will be adjudicated based on the principles of the Code and the ‘savings’ provision, ensuring the employee’s rights are protected.