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CS Professional · Labour Laws and Practice · Law of Wages

Bharat Engineering Ltd finds that its women technicians earn less than men doing similar work. To comply with the Code on Wages, 2019, the HR head proposes to reduce the wages of the male technicians to match the women's wages. What is the legal position?

The proposal is not allowed. Under the Code on Wages, 2019, an employer cannot reduce any employee's wage rate in order to comply with the gender non-discrimination rule. Equalisation must be achieved by raising the lower wages, not by lowering the higher ones.

  1. AAllowed if the reduction is done gradually over two years
  2. BAllowed if the male technicians are paid a separate allowance
  3. CAllowed if the Board of Directors approves the reduction
  4. DNot allowed, as an employer cannot reduce the rate of wages of any employee to comply with the non-discrimination provisionCorrect

Explanation

Section 3(2)(i) says no employer shall, for the purpose of complying with sub-section (1), reduce the rate of wages of any employee. So equalisation must be by raising the lower wage; gradual implementation or board approval does not cure the reduction.

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