Section 62: Effect of laws and agreements inconsistent with this Code

Overview

Section 62 of the Code on Wages, 2019, is a crucial provision that establishes the supremacy of this Code over any other existing law or agreement related to wages, if there's a conflict. Essentially, it ensures that the rights and obligations defined within the Code on Wages are prioritized. This section doesn’t directly deal with calculating wages, payment methods, or bonuses, but it protects the benefits provided *by* the Code itself.

Scope and Coverage

• Employees Covered: This section applies to all employees covered under the Code on Wages, 2019 – including those in the organized and unorganized sectors, and wage earners generally.
• Establishments Covered: It applies to all establishments where workers are employed for wages.
• Thresholds/Exclusions: There are no specific thresholds or exclusions to the application of Section 62 itself. It applies universally to any law or agreement that conflicts with the Code.

Key Obligations and Rights

• Employer Duty: Employers must ensure that all wage-related practices comply with the Code on Wages, 2019, even if pre-existing agreements or other laws suggest something different. They cannot rely on older, conflicting rules.
• Employee Right: Employees have the right to benefit from the provisions of the Code on Wages, 2019, without being disadvantaged by any conflicting terms in their employment contract or any other law. If a conflict arises, the Code prevails.

Compliance and Penalties

If an employer violates Section 62 by applying a law or agreement that contradicts the Code on Wages, they can face penalties. This could involve inspections by labour authorities, show-cause notices, and ultimately, fines or other legal repercussions as prescribed under the Code. The penalties will be determined based on the specific violation and the severity of the impact on the employee’s rights.

Practical Examples

• Example 1: A company had a standing order stating that bonus payments would be calculated based on a lower percentage than what is mandated by the Code on Wages. Section 62 ensures that the company *must* follow the higher bonus percentage specified in the Code, overriding the older standing order.
• Example 2: An employee’s employment contract states that deductions can be made for reasons not permitted under the Code on Wages (e.g., excessive fines). Section 62 protects the employee, and the employer cannot legally enforce those unlawful deductions. The Code’s provisions on permissible deductions will take precedence.