The Equal Remuneration Act 1976 is an Indian labour law and an important piece of legislation to promote gender equality at the workplace. This Act forms a basis for ensuring equal rates to men and women for the same or similar work, thereby upholding the right to no discrimination treatment on the grounds of sex in employment matters. This Act further upholds Article 39 of the Constitution, in particular, Section 39d of the Indian Constitution, which enjoins equal pay for equal work for both men and women.
Let us take an insight into the historical aspect of this Act and its functioning in order to safeguard employee rights in India.
History of Equal Remuneration Act
- The origins of this Act can be traced back to the Constitutional Directive Principles, especially in Article 39 of the Constitution that calls upon the State to ensure that men and women receive equal remuneration for equal work. It addresses the issue of the discrimination of payment of women for exactly the same work as men that have become institutionalized for decades.
- The Act was ushered in during a period of labour reforms in the 1970s, apparently from a political viewpoint permitting key measures such as the Payment of Gratuity Act 1972, to follow suit. The Equal Remuneration Act became correlated with international standards initiated by ILO thereafter.
- After 2019, portions of this 1976 Act have been taken into the Code on Wages Act 2019, which is the framework for the new labour code reforms. The essence of the Act to ensure equal rates to men and women has been preserved.
Duty of Employer and Employee
Employer's Duties:
- Every employer will thus have the duty under Section 5 of the Act to pay equal remuneration to man and woman workers for the same or similar nature of work without any bias on the part of the employer. Such a decision may not be made by any employer under this section for discrimination recruitment or at any other time during the course of employment except where special conditions have been made available for women, like maternity leave.
- Under Section 6, it shall be the duty of the employer to maintain registers and records which would provide evidence of compliance with the provisions of this section. Such records may be subjected to scrutiny by inspectors appointed under the Act to preserve the right of such persons from employers' unfair practices.
- Employers must be aware that any agreement that tries to undermine the spirit of the no discrimination rule concerning wages based on gender will be null and void under the Indian Contract Act of 1872.
- The issues faced by employers and employees arise mostly because of shortcomings in awareness or the proper implementation of these laws. However, these issues fall entirely on the other side of the coin, and there is no space for deviation in the law.
Employee's Responsibilities:
- On their part, employees must report any suspected discrimination or bias in pay. Under Section 3 of the Act, they have the right to proceed otherwise by making such complaints to the appropriate authorities. Additionally, they must refrain from misusing the provisions of the Act to falsely accuse or demand.
- Thus, in a wider sense, all employees have that civic duty towards gender equality in the workplace and encouragement for the unfairly treated.
Punishment if You Violate the Equal Remuneration Act
- The punishment for the violation of the Equal Remuneration Act is harsh. Section 10 sets forth a penalty of not fewer than 1 month and not more than 3 months of imprisonment or a fine of an amount not exceeding subsidized ₹10,000 or both upon being found guilty of having violated the Act. Without taking into consideration the previous violation of the Act, the recurring violation may incur any additional financial burden on the employer.
- The Apex Court has continuously defended the rationale of the Act. In the landmark case of Mackinnon Mackenzie & Co. Ltd. v. Audrey D’Costa, the Supreme Court permitted equal pay for work done by woman stenographers in contrast to their male counterparts who were paid much higher salaries for the same work. This ruling reinforced the idea of no discrimination and laid down the framework for subsequent litigations.
- It is worth pointing out that employers who breach this law might also contravene other Indian labour laws, which include the Code of Wages Act 2019, and therefore be penalized under these acts as well.
- Naturally, an employer-employee agreement that purports to deviate from any provisions of the Equal Remuneration Act would be null, since it violates the Indian Contract Act of 1872, which requires that courts do not enforce contracts that contravene public policy.
Miscellaneous
- Under the miscellaneous sections of the Act empowers both the Central government and the State governments to set up advisory committees to enhance the participation of women in different employment sectors. These committees are given the responsibility to examine the issues faced by employers and employees in these sectors, especially where the under representation of women is experienced, and suggest measures to mitigate the challenges.
- Integration of the Act is into the new labour code, which does not compromise its relevance but instead modernizes its application against the changing norms of work culture, technological advancement, and the global integration of the gender equality paradigm.
- In holistic compliance, employers would do well to consider aligning the Equal Remuneration Act to other workplace laws like the Payment of Gratuity Act of 1972 and legislation on sexual harassment. Not only do these segments protect employees’ rights, but they also promote an amicable and equitable work culture.
In conclusion, the Equal Remuneration Act plays a pivotal role in protecting the rights of employees, particularly women, by ensuring equal rates to men and women, eliminating discrimination, and promoting a fair working environment. It holds both employers and employees accountable under clear legal provisions such as section 3, section 5, and section 6, and supports the constitutional vision laid out in article 39d of the Indian constitution. With evolving frameworks like the Code of Wages Act 2019 and the new labour code, the legacy and objectives of the Act continue to live on, reinforcing justice and gender equality in all employment matters.
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