Section 60: Power to remove difficulties

Overview

Section 60 of the Code on Wages, 2019, is a crucial provision that allows the Central Government to address any practical problems that may arise when putting the rules of this Code into action. It’s essentially a ‘problem-solving’ clause, ensuring the smooth implementation of the new wage regulations. It doesn’t directly deal with wage calculation, payment, or bonuses, but ensures the entire system functions effectively.

Scope and Coverage

• This section applies to the entire Code on Wages, 2019, and therefore covers all employees and establishments affected by the Code. This includes workers in all sectors, both organized and unorganized, and all types of establishments.
• There are no specific thresholds or exclusions related to this section itself. It applies universally to the implementation of the entire Code.

Key Obligations and Rights

• Employer Obligations: Employers don’t have direct obligations *under* Section 60. However, they may be affected by rules or orders issued by the government *under* this section to clarify or resolve implementation issues. They must comply with any such directives.
• Employee Rights: Employees benefit indirectly from this section. It ensures that if any unforeseen difficulties arise in implementing the Code, the government can step in to resolve them, protecting the rights and benefits intended by the Code. This prevents delays or loopholes that could harm workers.

Compliance and Penalties

Section 60 itself doesn’t create any direct penalties for employers or employees. However, if the government issues orders under this section, and an employer fails to comply with those orders, they could face penalties as prescribed under other sections of the Code on Wages, 2019, related to non-compliance with specific provisions (like minimum wage or payment of wages). Inspections will focus on overall compliance with the Code, and any government orders issued under Section 60 will be part of that assessment.

Practical Examples

• Example 1: Imagine a new minimum wage rate is announced, but there’s confusion about how it applies to workers paid on a piece-rate basis. The Central Government could use Section 60 to issue a clarification order specifying how the minimum wage should be calculated for piece-rate workers, ensuring fair wages.
• Example 2: A small establishment struggles to implement the new digital payment methods required by the Code due to lack of internet access. The government could use Section 60 to temporarily allow alternative payment methods for such establishments, preventing disruption and ensuring workers still receive their wages.