Wages Law for Labour in India: Your Right to Fair Pay

Wages are the foundation of a worker’s livelihood. In India, the government has established robust wage laws to ensure that workers, particularly those in unorganised or low-paying jobs, receive fair and timely compensation. These laws protect workers from exploitation and promote social justice and economic equality.

In this blog, we’ll explore the key provisions of Wage law in India, focusing on the Code on Wages, 2019, and what every employer and employee should know.

What is Wage Law?

Wage law in India refers to the rules and regulations that govern:

• Minimum wages
• Payment of wages
• Equal pay for equal work
• Timely and full payment to workers

The aim is to ensure that every worker is paid fairly and on time, regardless of the nature of work or industry.

Introduction to the Code on Wages, 2019

The Code on Wages, 2019, is one of the four new labour codes introduced by the Indian government to simplify and unify complex labour laws. It consolidates four previous laws:

1. The Payment of Wages Act, 1936
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976

Key Provisions of the Code on Wages

1. Minimum Wages for All Workers

• The law ensures a minimum wage for all employees, whether in the organised or unorganised sector.
• Earlier, minimum wage laws applied only to scheduled employment. Now, it applies universally.

2. National Floor Wage

• The central government will fix a national floor wage.
• States cannot set minimum wages lower than this benchmark.

3. Equal Remuneration

• The code ensures equal pay for equal work for men and women.
• It prohibits gender-based wage discrimination.

4. Timely Payment of Wages

Employers must pay wages:

• Before the 7th of the following month (for monthly wage earners)
• Before the 10th day (for weekly wage earners)
• On the last working day (for daily wage earners)

5. Mode of Payment

• Wages must be paid in cash, currency notes, by bank transfer, or electronically.
• Cash payments are allowed only in special cases.

6. Deductions

• Only authorised deductions (like PF, taxes, fines, or loan repayments) are allowed.
• Total deductions should not exceed 50% of total wages.

Who is Covered?

The Code on Wages applies to:

• All employees in the public and private sectors
• Gig workers, platform workers, and contractual labour
• Workers across industries, from factories to shops and startups

Importance of Wage Law for Labourers

• Protects from exploitation by ensuring fair pay
• Reduces inequality between formal and informal sector workers
• Improves the quality of life for low-income workers
• Promotes industrial peace by resolving wage-related disputes

Penalties for Non-Compliance

Employers who fail to comply with wage law provisions can face:

• Fines
• Penalties
• Imprisonment in cases of severe violations

Challenges in Implementation

• Lack of awareness among workers about their wage rights
• Informal sector employers often bypass wage laws
• Inconsistent enforcement by local authorities
• Delays in rolling out the new wage code across states

Conclusion

India’s wage laws are designed to protect the dignity and rights of every worker. With the Code on Wages, 2019, the government has taken a big step toward simplifying wage regulation and promoting fairness. However, effective implementation and awareness among workers are key to making these laws truly impactful.

Air India – Labor Fragmentation and Frequent Strikes

Air India – Labor Fragmentation and Frequent Strikes

Air India presents a complex case of industrial relations, marked by frequent strikes, multiple trade unions, and unresolved grievances over wage structures and promotion policies—especially post its merger with Indian Airlines. The multiplicity of unions—including pilots’, engineers’, and cabin crew associations—has fragmented representation and complicated collective bargaining.

The airline has been plagued with industrial disputes stemming from pay parity, work conditions, and operational restructuring, often leading to strikes and delays. The management has been accused of bypassing proper union negotiations and violating principles of natural justice under employment law. Disputes often land at the labour court or industrial tribunal, straining institutional capacities.

Many of these disputes involve demands for regularization of temporary staff, pay revision arrears, and working hour regulations—issues governed under the Industrial Disputes Act and relevant civil aviation standing orders. The lack of timely conciliation and arbitration by authorities has exacerbated tensions.

The company’s industrial relations machinery lacks a unified grievance redressal system. Disciplinary actions often attract charges of unfair labor practices, a violation under the Fifth Schedule of the Industrial Disputes Act. Additionally, public sector norms and government control hinder flexible HR policies that private airlines enjoy.

Air India’s case demonstrates the challenges of collective bargaining in complex, bureaucratic setups and the urgent need for industrial relations reform in India’s public sector enterprises. 

Corporate law – A Model for Peaceful Industrial Relations

Tata Steel, headquartered in Jamshedpur, is widely regarded as a pioneer in fostering strong industrial relations in India. The company’s partnership with the Tata Workers' Union (TWU) dates back several decades and has been marked by trust, mutual respect, and a proactive approach to labor welfare. Both parties have consistently engaged in collective bargaining to address wage issues, working conditions, and employee welfare schemes without significant disruptions.

Tata Steel emphasizes transparent communication, regular consultations, and institutionalized grievance redressal mechanisms. These efforts have been embedded into their Standing Orders, ensuring compliance with the Industrial Employment Act, 1946. The company also promotes participatory management practices, allowing workers a voice in decision-making forums, especially around productivity and workplace safety.

Unlike many companies that face frequent strikes or lockouts, Tata Steel has maintained industrial peace through voluntary wage settlements and long-term collective agreements. These are often reached without third-party intervention, demonstrating a mature labor-management relationship. The strong presence of a recognized trade union and the company's commitment to social dialogue have helped preempt industrial disputes.

Employment law principles such as fair wages, equitable treatment, and non-discriminatory practices are upheld through continuous dialogue. Provisions from the Industrial Disputes Act, 1947—particularly concerning layoffs, retrenchment, and unfair labor practices—are rarely invoked due to proactive dispute avoidance strategies.

Tata Steel’s case is a model for Indian companies aiming to balance business growth and employee satisfaction. It demonstrates that investment in structured labor relations, combined with effective use of collective bargaining and welfare policies, leads to sustainable industrial harmony.

Women employment law - Key Legal Provisions for Women in the Workforce.

There has been a growing recognition of the need to create inclusive and safe work environments for women in recent years. While societal attitudes play a crucial role, legal frameworks are the backbone that ensure fairness, protection, and empowerment for women in the workforce. In India and many parts of the world, several legal provisions exist to safeguard women’s rights at the workplace. Here's a comprehensive look at the key legal provisions that every working woman—and employer—should be aware of.

1. The Equal Remuneration Act, 1976

This act mandates that men and women receive equal pay for equal work and prohibits discrimination based on gender in matters of wages and recruitment. Employers are legally bound to ensure parity in salaries and are prohibited from reducing a woman’s pay to match a lower salary paid to a man in a similar role.

2. The Maternity Benefit Act, 1961 (Amended in 2017)

The Maternity Benefit Act provides for maternity leave and benefits to women employees. As per the latest amendment:

• Women are entitled to 26 weeks of paid maternity leave for the first two children.
• For subsequent children, 12 weeks of leave is granted.
• Women adopting a child below 3 months of age or commissioning mothers are entitled to 12 weeks of leave.
• Employers with more than 50 employees are mandated to provide crèche facilities.

3. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Commonly known as the POSH Act, this legislation is crucial in ensuring a safe work environment. Key features include:

• Mandates every employer to constitute an Internal Complaints Committee (ICC) at the workplace.
• Defines sexual harassment and lays down the process for complaints and inquiries.
• Requires companies to conduct awareness programs and include POSH compliance in their annual reports.

4. Factories Act, 1948

The Factories Act includes several provisions for the welfare and safety of female workers in factories. Key provisions include:

• Restrictions on night shifts (between 7 PM and 6 AM) unless proper safety measures and consent are in place.
• Mandatory provisions for separate restrooms, canteens, and childcare facilities.
• Ensures health, safety, and hygiene in work environments where women are employed.

5. Employees’ State Insurance Act, 1948

Under this act, insured women workers are entitled to maternity benefits, medical care, and sickness benefits during pregnancy. This applies to workers in the organized sector earning below a certain threshold.

6. The Code on Social Security, 2020

This comprehensive code consolidates various social security laws, including maternity benefits, provident funds, and employee compensation. It aims to provide universal social security coverage to workers across sectors, including gig and platform workers, thereby extending certain protections to women in unorganized employment.

7. The Indian Penal Code (IPC) – Sections 354 & 509

These sections offer legal recourse against acts of outraging the modesty of a woman (Section 354) and insulting the modesty of a woman through words or gestures (Section 509). These laws apply to workplace harassment and act as a deterrent against offensive behavior.

8. Reservation and Representation Laws

Government initiatives such as 33% reservation for women in government jobs in some states, and gender quotas on company boards under the Companies Act, 2013, aim to enhance female representation in leadership and decision-making roles.

Conclusion

Legal provisions play a pivotal role in building a gender-equal workforce. However, laws alone are not enough—awareness, implementation, and cultural change are equally vital. Employers must actively promote diversity and inclusivity while ensuring that the legal rights of women employees are upheld. For women, knowing these rights is the first step toward asserting them.

Women in the Workforce: Strengthening Legal Protections and HR Policies

Despite significant progress in gender inclusivity, women in India’s workforce continue to face challenges such as wage disparity, workplace harassment, and limited opportunities for leadership roles. While labor laws provide certain protections, gaps in enforcement and corporate policies often hinder true workplace equality. Strengthening legal frameworks and HR policies is crucial for fostering an inclusive, safe, and empowering work environment for women.

Key Legal Provisions for Women in the Workforce

India has several labor laws to ensure women’s rights in the workplace. These include:

• The Maternity Benefit Act, 1961, provides 26 weeks of paid maternity leave and safeguards against dismissal during pregnancy.

• The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013: Mandates Internal Complaints Committees (ICCs) for redressal of harassment cases.

• Equal Remuneration Act, 1976: Ensures equal pay for men and women performing the same work.

• Factories Act, 1948 (Amended): Includes provisions for workplace safety, restrooms, and creche facilities for women employees.

While these laws set a foundation, many women still face systemic challenges due to a lack of awareness, poor implementation, and workplace bias.

Challenges Women Face at Work

• Wage Gap and Career Progression Barriers: Women often receive lower pay for the same work and are underrepresented in leadership roles.

• Workplace Safety and Harassment: Many companies fail to establish effective grievance redressal mechanisms.

• Lack of Family-Friendly Policies: Many workplaces lack creches, parental leave options for fathers, or flexible working arrangements.

• Gender Bias in Hiring and Promotions: Unconscious biases lead to fewer women being considered for senior positions.

How HR Policies Can Bridge the Gap

HR departments can drive change by introducing progressive policies that go beyond legal requirements:

1. Equal Pay Audits: Conducting regular salary audits to ensure fair pay across genders.

2. Gender-Neutral Hiring Practices: Implementing structured, bias-free hiring and promotion processes.

3. Flexible Work Policies: Encouraging hybrid work, part-time options, and parental leave for both genders.

4. Stronger Anti-Harassment Measures: Training employees on workplace safety, ensuring ICCs function effectively, and offering anonymous reporting mechanisms.

5. Leadership Development Programs: Offering mentorship, upskilling, and leadership training tailored for women.

Case Studies: Companies Setting an Example

Several organizations in India have proactively strengthened their HR policies for women:

• Tata Group: The Group offers extended maternity benefits and flexible work options.

• Infosys: Implements mentorship programs for women in leadership roles.

• Mahindra & Mahindra: Provides creche facilities and structured return-to-work programs for mothers.

The Future of Women in the Workforce

Creating a truly inclusive workforce requires continuous efforts from both the government and the corporate sector. Strengthening legal protections and proactive HR strategies can pave the way for a more equitable work environment where women can thrive.

By prioritizing gender diversity and inclusion, companies will foster a positive workplace culture and enhance overall productivity, innovation, and business success.

Beyond Labor Laws: Can HR Policies Bridge the Gap Between Legislation and Employee Well-Being?

 

Labor law in India

While labor laws establish minimum workplace standards, they often fall short in addressing the full spectrum of employee well-being. Legal mandates such as working hour limits and the Right to Sit law provide necessary safeguards, but enforcement gaps and corporate culture challenges mean that many employees continue to struggle with high-stress environments. Can HR policies step in to bridge this gap and create a more employee-centric work culture?

The Limitations of Labor Laws

Indian labor laws, including the Factories Act, 1948, and the Occupational Safety, Health, and Working Conditions Code, 2020, provide foundational protections. However, challenges remain:

• Lack of enforcement: Many organizations fail to comply due to weak regulatory oversight.

• Cultural resistance: ‘Hustle culture’ normalizes overwork, even when it contradicts legal protections.

• One-size-fits-all approach: Labor laws set broad guidelines but don’t always account for industry-specific challenges.

How HR Policies Can Bridge the Gap

HR policies must go beyond compliance and actively promote employee well-being. This includes:

1. Flexible Work Arrangements: Hybrid work models, compressed workweeks, and remote options can reduce burnout.

2. Ergonomic Workplace Design: Beyond providing seating per the Right to Sit law, HR should invest in ergonomic workspaces to prevent chronic health issues.

3. Mental Health Initiatives: Offering Employee Assistance Programs (EAPs), therapy support, and stress management workshops.

4. Transparent Workload Management: Implementing project-tracking systems to ensure fair distribution of work and prevent excessive overtime.

5. Encouraging Open Feedback: Regular employee surveys and anonymous feedback channels to gauge workplace well-being concerns.

Case Studies: Companies Leading the Way

Some organizations have successfully gone beyond labor law compliance to create employee-friendly environments:

• Wipro: Offers dedicated wellness coaches and flexible work policies to support mental health.

• Tata Consultancy Services (TCS): Implements structured workload management tools to prevent excessive overtime.

• Future Group (Retail Sector): Future complies with the Right to Sit law and optimizes shift schedules for employee comfort.

The Future of Workplace Well-Being

For Indian workplaces to truly support employee well-being, a combination of strong legal frameworks and proactive HR policies is necessary. While labor laws provide the foundation, HR must cultivate a culture prioritizes health, work-life balance, and sustainable productivity.

Businesses that integrate well-being into their HR strategies will stay compliant and gain a competitive edge through increased employee satisfaction, retention, and productivity.

Right to Sit: A Small Policy Change with Big Labor Law Implications.

In many Indian workplaces, particularly in retail, manufacturing, and service sectors, employees are required to stand for long hours with little to no access to seating. This seemingly small workplace issue has significant health consequences, including chronic pain, varicose veins, and musculoskeletal disorders. In response, some Indian states, including Kerala and Tamil Nadu, have introduced the Right to Sit Laws, mandating that employers provide seating arrangements for their workers. This legal shift underscores the importance of aligning HR policies with labor rights to ensure worker well-being.

The Legal Framework of the Right-to-Sit Law

After years of advocacy by labor rights organizations, the Right to Sit Law was first implemented in Kerala and Tamil Nadu. The key provisions of these laws include:

• Employers must provide adequate seating arrangements for workers.

• Employees should be able to sit when their job does not require standing.

• Non-compliance can lead to penalties and legal action against employers.

These laws aim to address exploitative working conditions, particularly in sectors like retail, textiles, and hospitality, where workers often spend their entire shifts standing.

Why This Matters: The Health and Productivity Angle

Research has shown that prolonged standing can have severe health impacts, including:

• Increased risk of cardiovascular diseases.

• Chronic joint and back pain.

• Decreased productivity due to physical strain and fatigue.

From an HR perspective, implementing seating policies not only ensures legal compliance but also boosts productivity and employee morale. Comfortable employees are likely to perform better, take fewer sick leaves, and remain engaged at work.

Global Best Practices and Comparisons

Countries like Germany and Canada already have strict occupational safety laws that regulate work conditions, including mandatory seating where applicable. India’s move towards similar protections aligns with international labor standards set by organizations like the International Labour Organization (ILO).

Role of HR in Enforcing the Right to Sit Law

HR leaders play a critical role in ensuring compliance with the Right to Sit law by:

1. Conducting Workplace Assessments: Identifying job roles that require prolonged standing and providing seating options where feasible.

2. Training Managers and Supervisors: Educating leadership on the importance of seating policies and their impact on worker health.

3. Updating Workplace Infrastructure: Investing in ergonomic seating and workstations tailored to employee needs.

4. Establishing Employee Feedback Mechanisms: Allowing workers to report non-compliance and request accommodations without fear of retaliation.

Case Studies: Companies Leading the Change

Several Indian companies have started implementing seating-friendly policies even before legal mandates:

• Titan (retail sector) has redesigned its stores to include seating options for staff, improving employee satisfaction.

• Shoppers Stop has adjusted shift policies to incorporate more frequent breaks and seating arrangements.

• Large textile manufacturers in Tamil Nadu have adopted seating policies to comply with state labor laws, reducing worker fatigue and absenteeism.

Conclusion

The Right to Sit law is a significant step toward improving working conditions in India, particularly for retail and service workers. While Kerala and Tamil Nadu have taken the lead, it is time for other states and industries to follow suit. HR leaders must proactively integrate seating policies into their workplace strategies, ensuring both legal compliance and enhanced employee well-being. A simple seat can make a big difference—not just in comfort, but in overall productivity and job satisfaction.