What is the Equal Remuneration Act, of 1976?
This act was brought by the government of India to reduce discrimination in salary or compensation paid to employees on the basis of gender. This act states that if a male and female are doing work of the same nature, then they should be paid the same compensation.
What does Work of the same Nature mean?
Here the same nature means even if the jobs are not identical, but require the same amount of skills, effort, responsibility, and working conditions then they would be considered similar and need to be paid similarly. For Example, there are two employees, Atul and Anjali, Atul is a graphic designer and his work is to create visuals for marketing materials, while Anjali works as a web designer, developing the company’s website. So, their job title is not of the same, but their nature is similar, so if they have equal responsibility and bring equal value to the company, so they should be paid the same.
Objective of Equal Remuneration Act, of 1976: In the early days, it seemed that women were paid less than men even if they were doing the same work. This was discrimination on the basis of gender. So, this act was brought to promote equal wages for men and women. It is a significant step towards tackling gender inequality. Its primary objective is that women should be discriminated against on the basis of gender and paid equally to men.
Applicability of Equal Remuneration Act, of 1976: The Act applies to all establishments in the organised sector (both public and private) in public sectors, there is a lesser gender pay gap in public sectors as compared to private sectors. That is why this act also applies to private organisations. They should maintain records of men’s and women’s employment and be made available for inspection by authorities. In this way, it prevents discrimination.
Equal Pay for Equal Work and No Discrimination: This means, that if an employee is working at the same job and doing the same amount of work in an organisation, then he/she should be paid equal to other employees. No unreal salary should be offered on the basis of any kind of discrimination
Penalties for Violations: Employers who are found guilty of provisions of this act would have to face legal consequences, fines penalties, etc. The bigger the violation, the bigger the punishment if the violation is big, it can lead to imprisonment.
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