What is the Equal Remuneration Act?
Equal Remuneration Act is a law that ensures fair and equal payment of wages to both men and women workers. It was enacted in 1976 to stop discrimination against women in the workplace.
By ensuring equality in pay, this Act promoted the participation of women in the economy. It remains an important act till today, giving women the power to fight for fair pay and equal treatment in employment.
Main Provisions of the Equal Remuneration Act
For employers
- Employers are legally required to pay the same wage to male and female workers doing the same work.
- When recruiting new employees, employers are not allowed to discriminate on the basis of gender; except for cases where the employment of women in work which is prohibited or restricted by law.
- Ensuring equal pay for men and women takes precedence over any conflicting contracts, laws, agreements or awards.
- Employers are also responsible for maintaining a register to record details like employee’s name, gender, position, nature of work, and wages or salary paid.
For the Indian government
- The government can identify specific industries or sectors to regulate the employment of women.
- These sectors or industries shall be informed via official notification.
- The government will create an advisory committee of ten people; consisting of at least 5 women for this.
Objectives of the Equal Remuneration Act
The equal remuneration act was enacted to fulfil the following objectives:
- To ensure equal wages to men and women performing the same work
- To promote the participation of women in the workforce.
- To remove all discrimination against women in the workforce
- To eliminate inequality of treatment in the workplace
- To protect anyone from being unfairly dismissed due to their gender
- To create an equitable, diverse and fair work environment
Why is equal remuneration important?
Ensuring equal remuneration is beneficial for both employer and employee. Here are some reasons why.
Compliance of the law
If an employer is found guilty of gender based discrimination, or even failing to provide the register when asked, everyone responsible for the conduct of the company may be held responsible and found guilty.
This includes directors, managers or secretaries. Of course, if a director or manager is able to prove that it was done without their knowledge, they may be exempted from punishment. Punishment ranges from a fine of up to Rs 20,000 to imprisonment.
Attract top talent
Employers that pay employees solely on the basis of merit and performance, and not on gender, create a reputation for fairness.
A workplace that is known for being inclusive and diverse will attract the smartest and most talented people; talent is undoubtedly any business’s biggest asset.
Improve employee morale
Equal pay fosters trust and loyalty, as employees feel valued and respected. When employees are rewarded for performance and merit, they are likely to continue to work hard and contribute positively to the organisation.
Equal Remuneration Act Implementation Across India
Here is a list of state-level laws related to the Equal Remuneration Act, 1976.
These laws were enacted to complement the central Equal Remuneration Act of 1976 but may have been enacted to address specific local labour issues or precede the national legislation.
Andhra Pradesh – Acts related to labour rights include Act No. 20 of 1963, Act No. 24 of 1965, and Act No. 17 of 1966. These acts may have addressed regional labour needs, influencing equal pay standards before the national legislation
Arunachal Pradesh – Enacted the Arunachal Pradesh Equal Remuneration Act, 2002. Also references Act No. 2 of 1961, which may relate to employment regulations in this region.
Assam – The Assam Equal Remuneration Act, 1993 (Act No. 25 of 1962) reflects Assam’s specific approach to equal remuneration and labour equality, adapted to local workforce requirements.
Bihar – The Bihar Equal Remuneration Act, 1962 shows early steps toward labour protection and wage equality, preceding the central act.
Chhattisgarh – Enacted the Chhattisgarh Equal Remuneration Act, 2003 to enforce fair pay principles locally, with additional mentions of Act No. 4 of 1963 for labour rights.
Delhi – Delhi Equal Remuneration Act, 1956 was one of the earliest regional acts addressing labour equality, likely influencing the 1976 central act.
Goa – The Goa Equal Remuneration Act, 1999 addresses local labour concerns in a state known for its tourism-driven economy.
Gujarat – The Gujarat Equal Remuneration Act, 1991 (Act No. 15 of 1967) highlights Gujarat’s commitment to fair wages within its industrial and manufacturing sectors.
Haryana – The Haryana Equal Remuneration Act, 1975 directly precedes the national legislation, reflecting early regional commitment to pay equality.
Himachal Pradesh – The Himachal Pradesh Equal Remuneration Act, 1994 (Act No. 10 of 1961) was enacted to cater to the state’s specific labour demographics and issues.
Jammu & Kashmir – The Jammu & Kashmir Equal Remuneration Act, 2001 reflects the region’s labour protection efforts, particularly relevant given its unique political and social structure.
Jharkhand – The Jharkhand Equal Remuneration Act, 2003 and references to Act No. 10 of 1961 indicate regional legislation aligned with broader national labour standards.
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FAQs
- What is equality of remuneration?
Equality of remuneration is ensuring that everyone doing the same task is paid the same wage, regardless of gender. It is an important step in ensuring an equitable, fair and diverse workplace.
- What is article 39 of equal pay for equal work?
Article 39 of the Indian constitution stipulates that men and women have an equal right to earn a livelihood. It specifies – “there is equal pay for equal work for both men and women”, directly supporting the Equal Remuneration Act.
- What is a landmark case for equal pay?
The case of Air India vs Nargesh Meerza was a landmark case that reinforced the Equal Remuneration Act. This case centred on a regulation that required female flight attendants to retire upon reaching the age of 35, getting married (if they married within four years of service), or on their first pregnancy. Nargesh Meerza, a female flight attendant, challenged this regulation and won – the Supreme Court ruled that it was indeed unconstitutional to restrict married or pregnant women from working in any industry.
- What is remuneration?
Remuneration is the total amount earned by an employee for work done, including all cash and non-cash benefits.
