Chandigarh: Employers and workers in Chandigarh are set to see significant changes in wage regulation with the Chandigarh administration likely to notify rules under the Code on Wages, 2019, in early Aug. The move will bring all wage-related provisions under a single legal framework and extend minimum wage protection to every worker, irrespective of sector.The labour department Thursday outlined the key features of the new regime, which replaces four existing laws — the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act — with a consolidated legislation aimed at simplifying compliance and strengthening workers’ rights.One of the most significant changes is the extension of minimum wage entitlement to all workers. The code also introduces the concept of a national floor wage to be fixed by the Centre, below which states and Union Territories cannot notify wages.Officials said employers found paying less than the prescribed wages could face penalties of up to Rs 50,000, while repeat violations may attract imprisonment of up to three months, a fine of up to Rs 1 lakh, or both.The code introduces a uniform definition of “wages” across all labour provisions, a measure aimed at preventing the artificial splitting of salaries to reduce statutory benefits and liabilities.It also expands safeguards against gender-based discrimination in wages and recruitment, strengthening provisions previously covered under the Equal Remuneration Act. Violations will attract monetary penalties, with repeat offences carrying the possibility of imprisonment.The framework prescribes uniform timelines for payment of wages to workers employed on daily, weekly, fortnightly and monthly wages, while also laying down deadlines for final settlement of dues after an employee leaves service. In addition, deductions from wages cannot exceed 50% of total earnings.For employers, compliance is expected to become easier through a single system of records and returns, replacing multiple registers maintained under different labour laws. The code also creates a unified mechanism for wage-related claims and dispute resolution.The labour department said the legislation strengthens accountability by enabling prosecution of companies as well as directors, managers and other responsible officers for violations. Employers have been advised to familiarise themselves with the new provisions ahead of the notification of the rules.What Changes For Workers?Minimum wages for all workersNational floor wage to set minimum benchmarkUniform definition of wagesProtection against gender discrimination in pay and hiringFixed timelines for wage payments and final settlementsWage deductions capped at 50%Easier mechanism for wage-related complaints and disputes
