Worker working in factory
Worker working in factory
Kateryna Babaieva

Indian Industry on Thursday sought clarity from the government on the proposed definition of wages and total remuneration under the Labour Code on Wages. It has asked the government to explain rules being changed for wages, industrial relations, social security, safety and working conditions under four new labour codes.

“The term total remuneration should be clearly defined so as to avoid any confusion and ensure simplicity and smooth implementation,” the Confederation of Indian Industry (CII) said.

CII, in a meeting with labour minister Santosh Gangwar, wanted to know whether wages will include contractual bonus and productivity-linked bonus. In the draft rules, wages exclude bonus.

Besides CII, there were representatives of trade unions as well in the meeting.

CII in its submission asked, "Given that only bonus payable under the law is excluded from the definition of wages, it is unclear how contractual bonus, performance linked bonus, joining bonus, employee referrals, non-commission- based incentives / rewards etc. would be treated and whether they will form a part of ‘wages’,"

It further sought clarity on the rules that are silent on treating benefits like medical allowance and rent-free accommodation as part of wages.

Suggesting of setting up worker skilling fund, CII said that retrenched workers should be issued skill vouchers by the employers. These can be encashed or redeemed by the workers at any government authorised technical training institute.

The rules on industrial relations also say that the government can review its order granting permission or rejecting permission for retrenchment etc. CII suggested that in case of deemed approval after a period of 60 days, there should not be any option for the government to review on its own accord and this should be explicitly mentioned in the rules.

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