Introduction:

In Bangalore, a vibrant hub of technology and innovation, ensuring compliance with labor laws, including the Equal Remuneration Act, is crucial for fostering a fair and inclusive work environment. The Equal Remuneration Act, 1976, mandates equal pay for equal work for men and women, aiming to eliminate gender-based wage discrimination in both the organized and unorganized sectors. Despite legal provisions, achieving full compliance remains a challenge, requiring concerted efforts from employers, employees, and regulatory authorities.

 

Effects of equal remuneration act:

The act provides for equal remuneration for both men and women workers and prevents any discrimination in the payment of remuneration on the grounds of sex.

This discrimination can get measured based on: -

1. Promotion and rise in salary.
   
2. Welfare schemes: bonus, provident fund, gratuity, pension, and annual increment.
   
3. Benefits: weekly holiday, earned leave, casual leave, maternity leave, medical leave, insurance against accident.
   

It came in force on 8th March 1976 intending to prevent discrimination against women in employment where men are comparatively paid more than women at the same level of employment or for the same work.

Although the E.R. Act got repealed by introducing the code on wages 2019 on 8th august 2019.

The effects of the Equal remuneration act 1976 get laid down as follows: -

1. Improved the quality of women’s conditions in an employment
   
2. Empowered Women in the employment sector
   
3. Created awareness among the women about their rights and duties
   
4. Awareness among men and women about the application of act and prevention of discrimination
   

Challenges to Compliance:

1. Gender Bias and Stereotypes: Deep-seated gender biases and stereotypes often influence remuneration decisions, leading to disparities in pay for men and women performing similar roles. Addressing these biases requires cultural shifts and awareness campaigns within organizations.

2. Lack of Transparent Remuneration Policies: Many companies lack transparent remuneration policies, making it difficult to assess whether pay discrepancies exist. Establishing clear and standardized policies for determining salaries based on skill, experience, and performance can enhance transparency and accountability.

3. Wage Secrecy Norms: The prevalence of wage secrecy norms discourages employees from discussing their salaries, further perpetuating disparities. Encouraging open discussions about compensation and promoting salary transparency can help identify and address inequities.

4. Compliance Monitoring: Limited resources and enforcement mechanisms pose challenges to monitoring compliance with the Equal Remuneration Act. Strengthening regulatory bodies and conducting regular audits can enhance oversight and ensure adherence to legal provisions.

 

Strategies for Compliance:

1. Awareness and Training: Educating employers and employees about their rights and obligations under the Equal Remuneration Act is essential for promoting compliance. Conducting regular training sessions and workshops can enhance awareness and foster a culture of equality in the workplace.
   
2. Implementing Gender-Neutral Policies: Adopting gender-neutral policies for recruitment, promotion, and compensation can help mitigate biases and promote fairness. Performance-based evaluations and transparent salary structures can ensure that remuneration is based on merit rather than gender.
   
3. Establishing Grievance Redressal Mechanisms: Creating accessible grievance redressal mechanisms enables employees to report instances of discrimination or unequal treatment. Promptly addressing complaints and taking appropriate action sends a strong message that discriminatory practices will not be tolerated.
   
4. Collaboration and Advocacy: Collaborating with industry associations, advocacy groups, and government agencies can amplify efforts to promote gender equality in remuneration. Sharing best practices, advocating for policy reforms, and participating in collective initiatives can drive systemic change.
   
5. Leveraging Technology: Leveraging technology, such as software tools for analyzing pay disparities and conducting gender pay audits, can facilitate compliance monitoring and decision-making. Automated systems for salary review and benchmarking can help identify and rectify inequities proactively.
   

 

Penalties of Equal Remuneration Act:

The penalties under this act get laid down under section 10.

Sub-section (1) of section 10 covers omissions or failures on the part of the employers to comply with the act’s provisions. While sub-section (2) covers both acts and omissions on the part of the employer

As per section 10 (1) of the equal remuneration act 1976, if an employer,

1. Omits or fails to manage any register or other document concerning workers employed by him.
   
2. Omits or fails to maintain the register, muster roll or other documents concerning the employment of workers employed by him.
   
3. Refused to produce evidence or prevent his agent, servant, or person in charge of the establishment to do so as required.
   
4. Refused to give any information as per requisitions.
   

Then that employer will get punished with imprisonment of up to one month or with a fine extending up to one thousand rupees.

As per section 10(2) of the E.R. Act, if an employer,

1. Makes any recruitment in the manner contravening the provisions of this act.
   
2. Pays any remuneration at an unequal rate to men and women workers for the same work or work similar in nature
   
3. Discriminate men and women workers in the contravention of provisions of this act
   
4. Omits or fails to comply with any direction given the appropriate government under sub-section (5) of section 6.
   

Conclusion:

Achieving compliance with the Equal Remuneration Act in Bangalore requires a multifaceted approach that addresses deep-rooted biases, fosters transparency, and strengthens enforcement mechanisms. By promoting awareness, implementing gender-neutral policies, establishing grievance redressal mechanisms, fostering collaboration, and leveraging technology, organizations can create fair and inclusive workplaces where all employees are valued and remunerated equitably. Embracing diversity and equality not only fulfills legal obligations but also enhances organizational performance, innovation, and employee satisfaction in the dynamic landscape of Bangalore's workforce.

 

 Created & Posted by Himanshu Shakya