Geographic limits lifted on labour inspectors

In a bid to break the corruption-laden nexus between inspectors & employers, the government has removed geographic limits on labour inspectors and introduced the option of web-based electronic inspection. Under the reformed Wage Code Act, an employer will now deal with a single inspector for compliance instead of one under each labour law. A randomised selection process could be employed now to designate a territory to an inspector. The code also allows the government to conduct inspections and seek information electronically.

Last week, Parliament passed the Code on Wages Bill, 2019. This allows the Centre to set a minimum statutory wage and could benefit 500 million workers. This is the first in a series of four codes under the government’s labour reform initiative.