Rule 3 of the Draft Code on Wages (Central) Rules, 2020: An important milestone

Abstract

When Rule 3 of the Draft Code on Wages (Central) Rules, 2020 (hereafter referred to as ‘Draft Rules’) was notified, the shortcomings of Rule 3(1) in the Draft were highlighted by the discussion paper published by the International Labour Organisation and the recommendations made by Oxfam. This paper argues that despite its shortcomings, Rule 3(1) in the Draft Rules is still an important milestone for the progressive realisation of workers’ welfare in India, because it is the first time that the Union Government has shown normative commitment towards ratifying the recommendations of the 15th Indian Labour Conference, 1957. The benefit of calculating the minimum wage as per Rule 3(1) of the Draft Rules, which is in tune with the 15th Indian Labour Conference recommendations, would be that it will ensure that the minimum wages will be set at a quantum higher than usually set by the Committees and Wage Boards appointed by the Union Governments throughout history. Therefore, while it is necessary that the civil society organisations eventually push for a better version of Rule 3(1) in the Draft Rules, it is equally important that they act as watchdogs to ensure full-fledged ratification and implementation of the 15th ILC norms in Rule 3(1) in the Draft Code Rules in the first place.