SESSION 2020-2021

PROJECT WORK OF

LABOUR LAW-II

ON THE TOPIC:

“A CRITICAL ANALYSIS OF EQUAL REMUNERATION ACT, 1976”

SUBMITTED TO: SUBMITTED BY:

MS. AREENA ANSARI REETESH SAHU

(ASSISTANT PROFESSOR OF LAW) BAL/077/18

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 ACKNOWLEGDEMENT

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is due to such supervision and assistance and I would not forget to
thank them.”

Firstly, I am extremely obliged to Dharmashastra National Law University to provide me such

an opportunity to do this project.

I respect and thank to Our Respected Vice-Chancellor Prof. (Dr.) V. Nagaraj, Dean Of
Academics Mr. Manwendra Kumar Tiwari and owe my deep gratitude to my project guide Ms.
Areena Ansari (Assistant Professor of Law) she guided me “all along, till the completion of my
project work by providing all the necessary information for developing a good system.”

At last, I would like to thank my family & friends.

REETESH SAHU

BAL/077/18

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 TABLE OF CONTENTS

1. INTRODUCTION………………………………..……..4

2. HISTORY OF LEGISLATIONS RELATED TO EQUAL PAY FOR

EQUAL WORK ………………………………………..5-7
3. FACTORS AFFECTING EQUAL PAY AND ITS PRESENT SCENARIO
IN INDIA…………………………………………….....8-9
4. ECONOMIC, SOCIAL AND PHYSICAL IMPACTS OF EQUAL PAY
AND EQUAL WORK AND WAYS TO ATTAIN
IT………………………………...……………………10-11
5. CONCLUSION…………………………………………12

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 INTRODUCTION

Humans in the society try to earn their living by making optimum use of the available skills,
knowledge and resources. They carry out different economic activities to satisfy their day to day
needs. In return, for performing such activities, they get paid. The payment is either monetary,
materialistic or in the form of services. But varieties of problems arise when there is difference in
the payment granted to the individuals, who perform same or similar tasks. The phrase Equal Pay
and Equal work comes into light when such disparities arise.
The factor of equality is an important aspect and needs to be taken care of to a greater extent.
This is to ensure that there remains no discrimination among individuals and members from each
tier of society, which would result in the holistic development of everyone and would lead to the
welfare of the society at large. There are legislations at the national and international level which
mention the same and are working for the betterment of the present scenario. It has become a
must for the contemporary and dynamic society to nullify such differences and enhance the
ailing situation. In India, it is not expressly declared in the constitution as a fundamental or even
constitutional right. It can be interpreted by varieties of articles of the constitution. Article 14-18
which talk about the establishment of equality among the individual by removing existing
economic or social hurdles plays a great role in preventing discrimination and promoting the
sense of inclusiveness in public employment. Article 15 and 16 also talks about the positive
discriminations for the promotion and welfare of the backward classes of the society.
The condition of India regarding the philosophy of equal pay and equal work is in deep water.
Despite of several laws such as the Equal Remuneration Act, 1976, Code of Wages Act, 2019,
Equality Act 2010 and various case laws upholding the right of equal pay for equal work by the
Supreme Court and the High Court, the ground reality remains untouched and the physical,
social, ethnical and the religious stereotypes emerge out as the basic hindrances. Gender based
discrimination is the most prevalent one in the Indian society. But certain plausible decisions are
also being taken in order to minimize the discrimination. The decision of the Supreme Court to
grant the permanent commission to the female army personnel was one among the many. Such
decisions and steps not only benefit a group of individuals but also pave new ways for the
advancement of the philosophy of equal pay for equal work in the time when there is a dire need
of such revolutionary upbringing and changes.

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HISTORY OF LEGISLATIONS RELATED TO EQUAL PAY FOR EQUAL
WORK

The terms equality and discrimination go hand in hand. It is well recognized that an analogy
exists between equality and discrimination. In order to understand this nexus, however, the
meaning of equality and the characteristics that make it a progressive, universal, moral and legal
principles must be explored.1 Social scientists and philosophers have done a tremendous job to
minimize the disparities that existed in the society. From the primordial era, division in the
standard of payment was deep rooted in every tier and class of the society. Various basis such as
caste, gender, hierarchy and religion acted as a plethora of sheer economic discrimination. After
the initial stages of the formation of a civilized society, individuals started to utilize the available
means and resources for their welfare and the welfare of the society. In the course of performing
such economic activities, individuals, either individually or through an organizational setup,
started providing specific work to other individuals to achieve a common goal. In return of
performing such economic activities, individuals were rendered with certain valuable goods and
services. But the goods and the services thus offered were not the same for each one of them and
varied according to various physical and social stigmas and stereotypes. These differences and
disparities became so common and deep rooted in the society that they started getting unnoticed
and hence became a part and parcel of normal life. For example, in an Indian society a male was
given more priority and was rendered better consideration for the similar task done by his female
counterpart.
From the royal family to the lives of any normal men, the condition was nowhere different. The
roles performed by the female members of the society were not given the appropriate
appreciation and worth that they were entitled to. Not only the male-female disparities but many
other forms also existed. Circumstances where pay inequalities exist in case of persons of the
same gender have also been a major matter of concern and has been a topic that requires certain
attention to be paid. Even the present-day condition isn’t admirable. The differences in the
payment of daily wage laborer's and regular laborer’s is a prime example of it. With the rise of

1
Equalrightstrust.org (2022), https://www.equalrightstrust.org/ertdocumentbank/LocatingEquality.pdf (last visited
May 7, 2022).

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awareness, changes in literacy and broadening of knowledge and mindset, the contemporary
condition has somewhat changed from what it was a few decades or centuries ago.
Various legal and obligatory measures have been taken time and again in the history for the
betterment of the society and for the attainment of the notion of equality and equity. The drafters
of the constitution had the conscience about the importance of equal pay for equal work and thus
included it through the ‘Right to Work’ through Article 39(d) and 41. These articles, being
included in the directive principles of state policies act as guidelines which are to be looked for
while framing the plans and policies of the state. Efforts are employed even on legislative fronts
- Equal Remuneration Act, 1976 being the prime one amongst them. The Act by means of
Section 4 not only emphasizes on equal pay for equal work but even bars the employer from
reversing the pay scales in order to attain equilibrium. The Equal Remuneration Act,1976 has
been repealed by the Code on Wages Act,2019 in order to fill the voids left by the previous act.
The enactment of Code on Wages Act has hasted the process of reducing the pay gap in the
Indian society. The principle of Equal Pay for Equal Work was first considered in Kishori
Mohanlal Bakshi v. Union of India in the year 1962 where the Supreme Court declared it
incapable of being enforced in the court of law. However, it received derecognition only in 1987
through Mackinnon Mackenzie’s case. Here the issue of concern was a claim for equal
remuneration for Lady Stenographers and Male Stenographers. This was ruled in favor of lady
stenographers as the Court was in favor of equal pay. 2 Some of the other acts that looks forward
to the philosophy of equal pay and equal works in India are listed below-

 Workmen’s Compensation Act, 1923- This act aims at providing protection to the
workmen and his/her defendants in case of injuries and allows monetary restitution from
the employers.
 Factories Act, 1948- This is act was introduced to regulate the working conditions of
employees in the factories.
 Minimum Wages Act, 1948- This act was introduced for the statutory fixation of
minimum wages in India so that the condition of the employees could be improved.

2
(2022),https://paycheck.in/career-tips/workandpay/equal-pay-for equalwork#:~:text=The%20principle%20of
%20Equal%20Pay,through%20Mackinnon%20Mackenzi (last visited May 6, 2022).

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  Contract Labor (Regulation and Abolition Act), 1970- This act was of great
significance as it fixed working hours for women and brought in a new change in the
society.
 Code on Wages Act, 2019- This act recognized and presented due importance to the
need for equal pay for every individual. It increased the arenas of benefit of the law to
other oppressed genders including the transgenders. The act also allowed the government
to declare the differences in the wages of employers, but the bases should not be on the
grounds of sex.The Code also makes progress by eliminating Section 16 of the Equal
Remuneration Act, 1976, which allowed the government to declare that the factor of pay
difference shall be other than sex in any establishment or job. Section 16 essentially gave
the government the power to declare the unequal to be equal, without any explanations.

India has always been striving forward to priorities the welfare of the economically weaker
section of the society. The demand to have a national minimum wage policy is not a new thing
that strikes our senses. Despite being a policy few, the national minimum wage policy has still
not been able to attain a statutory status. Has the time ripened for change and is the country
prepared for such a situation? This has been a hard to swallow kind of situation for the policy
makers. Changes in the society and surge in awareness among the ordinary citizens of the state
have been creating a situation of unrest among the policy makers. The national trade unions have
also recently mounted a campaign for a statutory national minimum floor wage at a higher
threshold than the current non-statutory national minimum wage.

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FACTORS AFFECTING EQUAL PAY AND ITS PRESENT SCENARIO IN
INDIA

Despite of such tremendous legal and social developments and the advancement in the mindset
and set of traditions followed by individuals, the extent to which the application of this principle
is followed is still a question that arises in the mind of a virtuous individual. The rational
thinking and certain factors affecting quality of life among the individuals of the society has seen
a serious hike in terms of quality in the past few years which has resulted in the reduction of the
gap in wage differences. Still, a huge part of the stone has been left unturned and needs to be
dealt at the earliest. Some of the factors impacting the principle of equal pay and equal work are
listed below-
 Lack of proper education and skill-based training- The Indian society is more or less
of patriarchal nature and all the decision-making process majorly rests on the males of the
society. This is why majority of the practices are male friendly and as per there
convenience due to which female receive less exposure to opportunities and training.
This the reason why females can’t gain the required skillset.
 Social stereotypes and taboos- Our society is filled with innumerable individuals who
carry primordial mindset and think that women are something that are ought to be kept
inside the house and getting them out would be subject to dignity of the family in the
society and among the near ones. There are many such filthy beliefs that bar the holistic
development of a female.
 Discrimination- Discrimination on the basis of gender, caste, religion and language
affects the notion of equal pay. The biasness from the side of employers affects the wages
received by the employees. The discrimination between the wages provided to a labor
belonging to a higher ethnic group in comparison to one belonging to a lower caste in
states like Bihar is one of the prime examples. The discrimination also occurs on the basis
of place of birth. In states like Maharashtra, the people coming from states like Uttar
Pradesh and Bihar are never paid as per their skills and labor.
 Cultural and Religious hazards- India is a multi-religious and multi-cultural country.
With innumerable culture comes innumerable sets of tradition. These sets of traditions

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 give rise to certain obligations and beliefs. In continuance of following these beliefs and
carrying out the tradition, the notion of equal pay is to an extent, spoiled. Some of the
religious beliefs disallow women to exit the doorsteps of house and thus disdain them
from the opportunities of self-development and the chance to attain economic prosperity.
 Favoritism and Nepotism- Favoritism refers to providing more resources and
opportunities to individuals closer to self rather than providing on the basis of merit and
performance. This is the reason why majority of the deserving individuals don’t get the
recognition and wages they are entitled to.
 Undermining the potential of certain group- There is a misconception that people
coming from some specific states like Bihar aren’t good enough to do jobs that requires
higher academic qualification and fluency in English language. Thus, the potential of
such people is undermined and they are deprived of the jobs that are ought to be given to
them according to the skill sets they possess.
Until and unless the above-mentioned hazards are dealt with and correct restorative measures are
adopted, the gap would remain more or less the same. India ranked 149th in economic
participation and opportunity and 117th in wage equality for similar work in the report published
by World Economic Forum in 2019 in which 153 countries participated. Also, the report stated
that the wide Gender Gap in India is due to Religious and Historical Societal linkages. The
process is much slower as compared to other countries because of attitudes prevailing in Indian
societal culture.3

3
Neetu Sharma, India slips four ranks on World Economic Forum’s Global Gender Gap Index 2020 mint (2022),
https://www.livemint.com/news/india/india-slips-four-ranks-on-world-economic-forum-s-global-gender-gap-index-
2020-11576574974188.html (last visited May 12, 2022).

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ECONOMIC, SOCIAL AND PHYSICAL IMPACTS OF EQUAL PAY AND EQUAL
WORK AND WAYS TO ATTAIN IT

The principle of equal pay and equal work has a wide range of scope. It has impacts over the
economic, social and physical aspects of the human life and society. Primarily, it deals with the
economic aspect and in connection with the economic aspect, it affects the social and physical
behavior and condition of an individual in the society. Some of the impacts of the principle are
listed below-
 Improvement of quality of life- All the factors affecting the lives of an individual will
improve in terms of quality when he or she has the proper economic means to obtain the
required factors. If each member of the society is well paid for the tasks they perform,
then the basic needs such as health, education and certain other desires of each individual
can be satisfied and thus the final goal i.e., to attain a welfare state can be fulfilled.
 Attainment of equality in the society: The principle can be used to reduce the gaps
between the members of the society and avoids the creation of classes on the economic
basis. This would lead to the establishment of peace and cooperation in the society and
the sense of mutual respect and dignity of labor would develop.
 Promotion and reinforcement of women rights-Female members of the society
generally face discrimination in the society due to lack of education and awareness of
their rights and capabilities. Through equal pay, their condition can be strengthened and
they can be brought at the same level alongside the men.
 Sustainable and rapid development of the society- Men and women are the two wheels
of the same cart and it is impossible for the cart to move without either of the wheel.
Thus, it is very important to maintain a proper balance in the condition of both the male
and female members of the society for its smooth administration. For the sustainable and
holistic development of the society the development of each section of the society is
hugely essential.
 Economic development of the country- If each tier of the society participates equally in
the economic affairs of the society, then the economic condition of the country can be
improved to a greater extent and a robust economy can be established. And with a robust

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 economy all the other aspects of the state such as development, equity, welfare etc. can
easily be achieved.
 Increment in Innovation and Competition- Equal pay gives the same platform and
resources to every individual and creates a suitable atmosphere for innovation. Once
every individual comes under the same footing, competition hikes, resulting in
development of large numbers of skilled and semi-skilled manpower.
 Reduction in poverty- Equal pay would increase the assets of an individual though
which he can regulate the liabilities. In a family, with equality in payment of wages, it
would become easier to fulfill the basic needs and amenities and there won’t remain a
burden on a single individual to labor for the need and deeds of the family.
 Dignity of labor- Once people of different group start getting equal renumeration for the
same kind of jobs they perform, sense of mutual respect will develop among them and
there won’t be any division of class on the basis of labor.
 Increment in the literacy rate and life expectancy- With rise in pay, quality education
and health facilities would be easily affordable for every individual and with its aid, it can
be easier to fulfill the needs and demands. Also, it can help in improving the HDI score
of a nation.

It is the need of the hour to act in favor of the principle of equal pay and equal work. The major
thing that can be done for it is providing education and training to individuals from every
background. Platform for representation is equally important. Also, the prevailing discrimination
should also be curbed to the maximum extent. The members of the society need to have a sense
of devotion towards the society and should refrain themselves from favoritism and nepotism and
provide opportunities to the deserving ones. The legislations for the promotion of equal pay
should be framed more effectively and according to the present day requirements. There should
be stringent provisions for the ones exploiting the rights of others or causing any sort of
discrimination. Individuals should think rationally rather than believing on dubious religious
practices that cause inequality in the society. Even that father of the nation, Mahatma Gandhi,
preached for equality in payment of wages between men and women. Its inclusion in the
directive principles of the state signifies its importance and need.

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 CONCLUSION

A society, for its holistic development, requires all its tiers to be in perfect working condition and
equality is basis element for a just and developing society like India. It is impossible for a society
to achieve positive growth in the absence of even one of its components. A proper mechanism of
production, distribution and consumption of resources is an essential requirement of an ideal
society. It would become very difficult for the society if all the groups aren’t on equal footing.
There is dire need of equal pay in the society and if appropriate measures are followed within
available time period, we can safeguard ourselves from future damages and can pave a perfect
path for the prosperity of the state and its citizens. In case of delay, severe consequences such as
social and economic instability and ailment in the living standard of the people can rise.
Thus, from the critical analysis of the Equal Remuneration Act, 1976 it can be safely concluded
that there was a need for a better legislation to fill in the voids of the Act which was done by the
enactment of The Code of Wages Act, 2019.however, there is still gap in the pay scale and all
such factors are discussed in the project along with the ways to attain the Equal pay for Equal
work for all.

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