Chapter 6 Wage Committee
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Chapter 6
Wage Committee
Section 78. There shall be a Wages Committee consisting of the Permanent Secretary of the Ministry of Labour and Social Welfare as chairperson, four government representatives, five representatives each from both Employer and Employee appointed by the Cabinet as members, and an official of the Ministry of Labour and Social Welfare appointed by the Ministry as the secretary.
Rules and procedures for obtaining the list of the representatives of Employers and Employees under paragraph one shall be in accordance with the rules prescribed by the Minister.
Section 79. The Wage Committee shall have powers and duties as follows:
(1) to propose opinions and to give advices on policy and development regarding wages and incomes to the Cabinet;
(2) to set guidance for Employers in determining the wage adjustment in accordance with the social and economic conditions;
(3) to fix the Basic Minimum Wage Rate;
(4) to fix the Wage Rates by Skill Standards;
(5) to give technical advice and guidance on the harmonisation of interests among Government agencies, private sectors and general members of the public;
(6) to perform other task as prescribed by law or as assigned by the Cabinet or the Minister.
In proposing the opinions to the Cabinet, the Wage Committee may make an observation on the development of national income system.
Section 80. A member of the Wage Committee appointed by the Cabinet shall hold office for a term of two years. A member who has vacated office maybe re-appointed.
Whereas a member of the Wage Committee appointed by the Cabinet vacates office prior to the expiration of his or her term of office, the Cabinet shall appoint a member of the same party to fill the vacancy, and the appointed member shall hold office for the remaining period of the replaced member. Except when the remaining period of the term is less than one hundred and eighty days, the appointment may not be required.
Whereas a member of the Wage Committee appointed by the Cabinet retires at the expiration of his or her term of office and a new member has not been appointed, such member shall continue in office until the new member has been appointed to assume office The appointment be completed within ninety days from date of the former member vacating office.
Section 81. In addition to the vacation of office upon the expiration of a term under section 80, a member of the Wages Committee appointed by the Cabinet shall vacate office upon:
(1) death;
(2) resignation;
(3) dismissed by the Cabinet on account of absence from meetings on three consecutive occasions without reasonable cause;
(4) being a declared bankrupt;
(5) being an incompetent or quasi-incompetent person; or
(6) being imprisoned by a final judgment, except for offenses arising out of negligent acts or for petty offenses.
Section 82. A meeting of the Wage Committee attended by members of not less than a half of the total members, of whom at least one member from each of an Employer party and an Employee party shall constitute a quorum.
In a meeting to determine the Minimum Wage Rate or the Wage Rates by skill Standards under Section 79, the attendance of not less than two-thirds of the total members, of whom at less two members from each of the Employer party and the Employee party shall constitute a quorum. The resolution of the meeting shall be adopted by at least two-thirds of the members who attend the meeting.
In any meeting to determine the Minimum Wage Rate or the Wage Rates by Skill Standards where the quorum has not been constituted as prescribed in paragraph two, a meeting shall be held again within fifteen days from the date of the appointment for the previous meeting. In the subsequent meeting, even without the attendance of member from the Employer party or the Employee party, a quorum shall be constituted if members of not less than two-thirds of the total members of the Committee are attending. The resolution of the meeting shall be adopted by at least two-thirds of the members who attend the meeting.
Section 83. In a meeting where the Chairperson of the Committee is not present or unable to perform his or her duty, the members present shall elect one among themselves to be the Chairperson of the meeting.
A decision of the meeting shall be by majority vote. Each member shall have one vote. In the case of a tie, the Chairperson of the meeting shall have an additional vote as a casting vote.
Section 84. The Wage Committee shall have power to appoint subcommittees to consider or perform any duty as assigned by the Wage Committee.
The Wage Committee shall determine the quorum requirements and work procedures of each sub-committee as appropriate.
Section 84/1 The Wage Committee shall have power to appoint proficient person of not more than 5 persons as advisor to the Wage Committee, of whom must be the qualified person at least in a field of labour, salary and wage management, economy, industry or law.
Section 80 and Section 81 shall apply mutatis mutandis to a term of office and vacation of office of the advisor appointed by the Wage Committee under paragraph one.
Section 85. In the performance of their duties, the Wages Committee, sub-committees, or a person assigned by the Wages Committees or sub-committee shall have powers as follows:
(1) to summon in writing any person to give statements or submit documents or any objects for consideration as necessary;
(2) to require any agencies or persons to cooperate in conducting surveys of any undertaking which may affect the economy; and
(3) to enter a place of business or an office of an Employer during working hours for the purposes of study, survey, research, examination or inquiry of facts in order to obtain information to be used in any consideration under Section 79 For this purpose, the Employer or concerned persons shall render facilities, submit or present documents, or provide facts and refrain from obstructing the performance of duty by such persons.
Section 86. In the performance of their duties under Section 85, the Wage Committee, sub-committees, or a person assigned by the Wage committee or sub-committee shall produce their assigned identity card or letter of authorisation, as the case may be, to any concerned persons.
The credentials of the Wage Committee or sub-committees under paragraph one shall be in accordance with the forms prescribed by the Minister.
Section 87.In determining the Minimum Wage Rate, the Wage Committee shall study and consider the facts regarding prevailing wage rates having been received by Employees together with other relevant facts by taking cost of living index, inflation rate, standard of living, cost of production, prices of goods and services, capabilities of business, labour productivity, gross domestic product, and social and economic conditions into account.
The Minimum Wage Rate as prescribed may apply to some certain types of business, work or branch of occupation in any extension or any locality.
For the purpose of the promotion of the employment and the labour protection of some certain groups or types of employees, the Wage Committee may determine the Minimum Wage Rate differently from what determined in paragraph two to apply to such groups or types of employees in business, work or branch of occupation in any extension or any locality; determined that it shall not be less than the Minimum Wage Rate fixed by the Wage Committee in paragraph two.
In determining the Wage Rates by Skill Standards which shall not be less than the Minimum Wage Rate fixed by the Wage Committee, the Wage Committee shall study and consider the facts regarding prevailing wage rates having been received by Employees in each career in according to skill standards by evaluating skill, knowledge and capability.
Section 88. After having studied and considered the facts as prescribed under Section87, the Wage Committee shall prescribe the Minimum Wage Rate or the Wage Rate by skill Standard and propose it to the Cabinet for publishing in the Government Gazette.
Section 89. The Notifications prescribing the Minimum Wage Rate or the Wage Rates by Skill Standards under Section 88 shall apply to all Employers and Employees within discrimination.
Section 90. Once the Notification prescribing the Minimum Wage Rate or the Wage Rates by Skill Standards has come into force, an Employer is prohibited to pay Wages to an Employee less than the Minimum Wage Rate or the Wage Rates by Skill Standards as prescribed.
Labour Inspectors shall send the Notification prescribing the Minimum Wage Rate or the Wage Rates by Skill Standards to Employers who are under the scope of enforcement. The Employers shall post the Notification in a prominent position in a workplace of Employees in order to be acknowledged by the Employees throughout the period of enforcement of the Notification.
Section 91. There shall be a Wage Committee Office under the Ministry of Labour and it shall have duties and powers as follows:
(1) to prepare the national wage and income system development plans for proposing to the Wage Committee;
(2) to prepare project plans for proposing to the Wage Committee and the sub- committees;
(3) to coordinate plans and operation of the Wage Committee and the sub- committees;
(4) to compile, study, research, analyse and assess situations on economy, Labour, living conditions, expansion of the labour market, labour productivity, investment, migration, and related information for preparing the national wage and income system development plans and in supporting the consideration of the Wage Committee and the sub - committees;
(5) to recommend the results of study, selected technical information and other supplementary measures to the Ministry of Labour and concerned agencies for the benefit in developing wage and income systems;
(6) to follow up and to assess the national wage and income system development plans and the performance in accordance with decision of the Wage Committee; and
(7) to perform any other tasks as assigned by the Wage Committee or the sub- committees.
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