Ensuring Pay Equality: The Equal Remuneration Act of 1976

INTRODUCTION

Men have historically held a dominant position over women in society. This inequality was evident even at the time of Independence, prompting the constitutional framers to address it, particularly as they opted for a democratic republic as the governing system. Over the years, there has been a gradual increase in the employment of women, accompanied by significant shifts in gender-specific roles. Traditionally, women were often viewed as less productive than men, with a prevailing belief that their dedication to family and household duties superseded their commitment to work. Economic dependence has been a primary factor contributing to women's limited bargaining power, often leading employers to undervalue their contributions and maintain unequal wage rates.

To address these issues, various legislative measures have been enacted, including the Workmen's Compensation Act, Payment of Wages Act, Factories Act, Minimum Wages Act, Equal Remuneration Act, Maternity Benefits Act, and ESI Act. These laws are designed to ensure fair and equal wages for all workers, regardless of gender, thereby striving to eliminate gender bias in the workplace.

State of A.P V. Sreenivasa Rao

Ensuring equal pay for equal work doesn't imply that every member of a particular cadre should receive identical pay, regardless of factors such as seniority, recruitment source, or educational qualifications. Granting higher pay to junior employees would appear arbitrary on the surface, but the principle of equality cannot be invoked if there is a justifiable reason for differential treatment.

In pursuit of realizing the objective of equal pay for equal work as outlined in the Indian constitution, the President of India enacted the Equal Remuneration Ordinance in 1975 to facilitate the implementation of directive principles.

The object of the Act

1. Equal Remuneration Act, of 1976 provides for the payment of equal remuneration to men and women workers and

2. For prevention of discrimination, on the basis of sex, against women in the matter of employment and for matters connected therewith or incidental thereto.

Features of the Act

1. The Act safeguards against discriminatory practices in the recruitment and promotion of both men and women.

2. Ensures equal remuneration for work of equal value or similar nature, regardless of gender.

3. Prohibits discrimination based on sex.

4. Recruitment of women must be free from discrimination.

5. Establishes an advisory committee aimed at enhancing employment opportunities for women.

6. Designation of officers to address complaints.

7. Appoints inspectors to investigate and enforce the provisions of the Act. The primary aim of the legislation is to promote gender equality, and through various rulings, the Supreme Court has broadened its scope to encompass the principles enshrined in Articles 14 and 16 of the Indian Constitution.

Definitions

Sec 2 (g)“Remuneration” means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in-kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled;

Sec2 (h) “same work or work of a similar nature” means work in respect of which the skill, effort, and responsibility required are the same when performed under similar working conditions, by a man or a woman, and the differences, if any, between the skill, effort and responsibility required of a man and those required of a woman are not of practical importance in relation to the terms and conditions of employment;

M.P. Rural Agricultural Extension Officers Association V. State of M.P. and Another

Extension officers in rural agriculture, who held only matriculation qualifications, lodged a complaint regarding their unequal pay compared to graduates as per the regulations. The Supreme Court noted that the state had adopted a policy specifying that the position of Extension Officers should be exclusively filled by graduates. The state had implemented a distinct pay scale for non-graduates to prevent discrimination among both new recruits and current employees who held graduate qualifications. Additionally, the state had provided a higher pay scale for existing degree holders. The Court determined that the state's actions in granting this differential pay were not unlawful.

The duties of the employer under the Act

Section 4: The duty of the employer to pay equal remuneration to both men and women workers for the same work or work of a similar nature

1)No employer shall pay to any worker, employed by him in an establishment or employment, remuneration, cash or in kind at rates less favorable than those at which he pays remuneration to the workers of the opposite sex for performing the same work or work of a similar nature.

2)The rate of remuneration of any worker will not be reduced to avoid complying with Section 4(1).

3)In respect of any establishment, the rates of remuneration payable before the commencement of the Act for men and women for same or similar nature work is different only on the ground of sex, then the highest of the rates will be payable after the commencement of the Act.

Section 5: No discrimination to be made while recruiting men and women workers

The employer is prohibited from discriminating against women in any aspect of employment, including recruitment, promotions, training, or transfers, for tasks of the same or similar nature. However, this prohibition does not apply in cases where the employment of women in such tasks is prohibited or restricted by existing laws.

Section 8: Maintaining a Registrar

Rule 6 read with Section 8 provides that: The employer has to maintain proper registers and relevant documents of all the employees and workers as prescribed by law in Form D. The Form needs to have:

1)category of workers

2)Description of work

3)No, if men employed

4)Number of women employed

5)Rate of remuneration

6)Components of remuneration.

Inder Singh & Others v. Vyas Muni Mishra & Others 1987

The court ruled that if two groups of individuals hold the same or similar positions and perform identical tasks, whether within the same department or across different departments, they must receive equal pay. This principle aims to eliminate unjust discrimination and ensure that similarly situated groups are treated equally.

Advisory Committee

According to Section 6(1) of the Act, the appropriate Government is required to establish an Advisory Committee aimed at enhancing employment opportunities. The government is actively endeavoring to reform the remuneration policies of employers in India. This committee must comprise a minimum of ten members, appointed by the appropriate government. To ensure the formulation of policies involving genuine stakeholders, at least half of the committee members must be women.