Article
Code on Wages, 2017 – An Analysis
Considering the pressing need to replace the labour law related legislations with laws which reflect India’s real story today, the government in its annual budget presentation this year announced merging of 44 labour laws into 4 codes on (i) wages; (ii) industrial relations; (iii) social security and welfare; and (iv) safety and working conditions. Objective of the Wage Code is to consolidate 4 existing labour laws relating to wages – (i) the Minimum Wages Act, 1948; (ii) the Payment of Wages Act, 1936; (iii) the Payment of Bonus Act, 1965; and (iii) the Equal Remuneration Act, 1976 – into one integrated code. Highlighting the provisions of proposed Wages Code, the author lists out various reasons why the industry and trade unions are not happy with the Code. According to the author, it is likely that issues relating to misalignment between the current legislations and the Code may be resolved, though it is unlikely that issues like easing the hiring fears of industries or addressing the issue of universal minimum wage mismatch with India’s diverse topography, etc., will find a mention…
Bills, Notifications and Circulars
- Companies Amendment Bill, 2017 as passed by Lok Sabha – Certain highlights
- Consolidated FDI Policy issued on 28th August – Major changes
- Reserve Bank Commercial Paper Directions, 2017 notified to ease eligibility norms, while enhancing disclosure norms to ensure accountability of the issuers
- Companies (Incorporation) Second Amendment Rules, 2017 notified
- IRDA (Other Forms of Capital) Regulations, 2015 clarified
- SEBI (Substantial Acquisition of Shares and Takeovers), Regulations 2011 amended to extend the exemption from the obligation of making an open offer to certain additional kinds of acquisitions
- IBBI (Insolvency Resolution Process for Corporate Persons) Regulations and IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations amended to recognize claims of creditors who do not qualify as ‘Financial Creditor’ or ‘Operational Creditor’ under the Code
Ratio decidendi
- Listed companies suspected of being shell companies – Securities Appellate Tribunal stays SEBI’s Order imposing trade restrictions
- Committed/Assured Returns amount to ‘financial debt’ under IBC – NCLAT
- Admission of insolvency petition under Insolvency and Bankruptcy Code - NCLT
