Definition of ‘Wages’ – Confusion worse confounded
By Noorul Hassan
The article in this issue of Corporate Amicus raises many issues which may arise if the definition of ‘wages’ as envisaged in the Wage Code, 2019 is implemented. It traces the history of the changes as recommended in the report of the National Commission on Labour submitted in 2002, report of the Working Group on ‘Labour Laws & Other Regulations’, Code on Wages Bill, 2017 and the report of the Standing Committee on Labour (2018-19). The author raises a very pertinent question as to whether ‘wages’ includes ‘remuneration’? Further, observing that the Explanation to the definition stresses that ‘remuneration in kind’, not exceeding 15% of the total wages, shall be deemed to form part of the wages, the author states that it is not clear whether the said remuneration in kind, up to 15%, is to be added back after ensuring 50% of remuneration (thereby bringing the wages up to 65%). The article concludes by stating that it would be appropriate for the Government to provide suitable clarifications or amendments, to enable smoother transitioning and implementation of the Codes...
Notifications and Circulars
- FDI ceiling in insurance sector to be raised to 79 per cent – Insurance (Amendment) Act 2021
- Companies accounts – Recording audit trail of transactions to be mandatory from 1 April 2022
- Penalty provisions in Sections 124 and 247 revised – Sections 23 and 45 of Companies (Amendment) Act, 2020 effective from 24 March 2021
- Guidelines on regulation of payment aggregators and payment gateways
Ratio decidendi
- A person ineligible to submit a resolution plan under IBC is also barred from proposing a scheme of compromise and arrangement under Companies Act – Supreme Court
- Commercial wisdom of CoC not to be interfered with, except for the limited scope provided under IBC – Supreme Court
- Arbitration – Period of limitation for filing objections to be from the date on which signed copy of award is made available to parties – Supreme Court
- Adjudicating Authority cannot modify the resolution plan approved by CoC, though has authority to disapprove – Supreme Court
News Nuggets
- Consolidation of CIRP process with CIRPs of subsidiaries permissible even in absence of common financial creditors
- Arbitration – Limitation for application for appointment of arbitrator – Necessary for Parliament to amend Section 11
- Insolvency proceedings against corporate guarantor when principal borrower not a corporate person
- Initiation of insolvency proceedings – Section 14 of Limitation Act applicable ‘as far as may be’
- Extension of loan moratorium period introduced due to COVID-19 ended
- Supreme Court upholds removal of Cyrus Mistry as Chairman of Tata Sons, reverses decision of NCLAT
- Finance Act 2021 – LIC Act and Securities Contracts (Regulation) Act amended
- Vehicle Scrappage Policy announced to reduce population of old and defective vehicles and to formalize informal vehicle scrapping industry
