Section 43: Powers and functions of Advisory Boards

Overview

Section 43 of the Code on Wages, 2019, deals with the crucial role of Advisory Boards – both at the Central and State levels – in ensuring fair wages. These boards advise the government on setting and updating minimum wages, and on other important issues related to wage determination and worker welfare. Essentially, they are a key part of the process for protecting workers’ rights to a fair day’s pay.

Scope and Coverage

• This section applies to the functioning of the Central Advisory Board and all State Advisory Boards established under the Code on Wages, 2019.
• It covers all establishments and employees affected by the Code, meaning most workers in organized and unorganized sectors. There are no specific exclusions relating to the *operation* of the boards themselves, but the Code’s overall applicability determines which workers benefit from the boards’ advice.

Key Obligations and Rights

• Duties of the Boards: The Central and State Advisory Boards must advise the government on matters like fixing and revising minimum wages, methods of payment, and any other issues related to the Code. They can also conduct research and collect data to inform their recommendations.
• Rights of Workers: While this section doesn’t directly grant rights to workers, it strengthens their protection by ensuring their concerns are considered when wages are determined. The boards are expected to represent the interests of both employers and employees.
• Employer’s Role: Employers are indirectly affected as they must comply with the minimum wages and other wage-related provisions advised upon by the boards and implemented by the government.

Compliance and Penalties

This section itself doesn’t outline penalties. However, if employers fail to comply with minimum wage laws or other provisions based on the Advisory Boards’ recommendations and the government’s subsequent orders, they can face inspections by Labour Inspectors, fines, and potentially other legal consequences as outlined in other sections of the Code on Wages, 2019.

Practical Examples

• Example 1: A State Advisory Board reviews the minimum wage for garment workers. After considering cost of living, inflation, and worker representation, they advise the State Government to increase the minimum wage by 10%. The government implements this increase, ensuring garment workers receive a higher minimum wage.
• Example 2: A Central Advisory Board identifies inconsistencies in minimum wage definitions across different states for similar occupations. They advise the Central Government to work towards greater uniformity in minimum wage standards nationwide, leading to a more equitable system for workers migrating between states.