Section 4: Decision as to disputes with regard to same or similar nature of work

Overview

This section of the Code on Wages, 2019, deals with resolving disagreements about whether different jobs are considered the ‘same’ or ‘similar’ for the purpose of minimum wage calculations. This is crucial because minimum wage rates often apply to specific categories of work. If there’s a dispute, this section outlines how it will be settled.

Scope and Coverage

• This section applies to all employees covered under the Code on Wages, 2019, regardless of their wage level or type of employment (skilled, unskilled, etc.).
• It covers all establishments covered by the Code, including factories, shops, and other commercial establishments.
• There are no specific thresholds or exclusions related to the application of this section itself; it applies whenever a dispute arises regarding the nature of work.

Key Obligations and Rights

• Employer Obligation: Employers must cooperate with the designated authority when a dispute is raised regarding the nature of work.
• Employee Right: Employees have the right to raise a dispute if they believe their work is being incorrectly categorized, potentially leading to a lower wage than they are entitled to.
• Government Role: The appropriate Government (Central or State) is obligated to notify the authority that will decide these disputes. This ensures a fair and consistent process.

Compliance and Penalties

This section doesn’t directly impose penalties on employers. However, if an employer is found to be deliberately misclassifying work to avoid paying the correct minimum wage after a dispute is resolved, they could face penalties under other sections of the Code on Wages, 2019, related to wage violations. Inspections can be conducted by Labour Inspectors to investigate potential misclassifications.

Practical Examples

• Example 1: A factory has workers assembling electronic components and workers packaging the finished products. A worker in the packaging department believes their work is ‘similar’ to the assembly work, which pays a higher minimum wage. They raise a dispute. The designated authority will decide if the skills, effort, and responsibility levels are comparable enough to classify the work as ‘similar’.
• Example 2: A construction company employs both bricklayers and helpers who carry bricks. The helpers argue their work is ‘similar’ to bricklaying. The authority would consider whether the helper’s work requires a comparable level of skill and responsibility to bricklaying. If not, the dispute would likely be resolved against the helpers.