THE recommendation of the labour reforms commission for a permanent wage commission to set a national minimum wage across all sectors is a welcome move. The commission, formed on November 18, 2024, submitted its report to the government on April 21. Several important proposals, if effectively implemented, could bring about long-awaited changes for the better. The recommendations include a revision of minimum wages every three years and the introduction of a universal social safety net to cover occupational hazards, illness and early retirement. Other major recommendations are the creation of a national workforce registration database, six months鈥� paid maternity leave, a benefits scheme for neonatal mothers, daycare in labour-intensive zones and the enforcement of anti-sexual harassment policies in line with the 2009 High Court directive. It recommends that workers should be notified in advance in the case of delay in wage payment and if wages are not paid by the rescheduled date, employers should be fined 0.5 per cent a day for the delay up to 30 days. The commission also proposes workplace cooperation committees and arbitration bodies aimed at resolving worker grievances internally and reduce the need for protests.
Wage payment delay, addressed in the recommendations though, warrants an explanation. The proposed penalty for payment delay is a step forward, but the mechanism lacks details. The report does not specify how long a delay should persist before it triggers the penalty clause or what qualifies as a 鈥榬escheduled date.鈥� The report also does not specify the extent of worker notification of delayed payment or the monitoring process for payment clearance. The recommendation to require employers to submit monthly payment clearance is a positive step, but only its strict enforcement and immediate follow-up on non-compliance would make the system more effective. The proposal for establishing workplace cooperation committees and arbitration bodies to resolve disputes without protest also raises questions. As such bodies are likely to include employer representatives too, there is a risk that they could reinforce the current power imbalance rather than mediate them. In such cases, the commission鈥檚 recommendation for strengthening trade unions to ensure worker voices are adequately heard is crucial. Without empowering workers to engage on equal footing, such mechanisms may serve administrative convenience rather than justice.
The government should, therefore, prioritise the logical and phased implementation of the commission鈥檚 recommendations, many of which address longstanding gaps in labour governance. A road map is needed not only to translate the proposals into legislation but also to guide reforms that ensure that worker rights, protection and representation are structurally embedded. The groundwork laid now should support sustained and inclusive improvement in the labour landscape.