Salient Features of Equal Remuneration Act, 1976

The concept of equal pay for equal work has been one of the cornerstones of labour law reform in India. For centuries, women were considered secondary earners, often subjected to lower wages and limited opportunities. Although the Vedic period recognised the equal status of men and women, this balance gradually eroded with time.

By the time India attained Independence, inequality between men and women was clearly visible in both social and economic spheres. Women were paid less for the same work, denied equal opportunities, and often treated as supplementary contributors rather than independent earners.

To address this injustice, the framers of the Constitution enshrined equality as a fundamental principle. Provisions such as Articles 14, 15, 16, and 39(d) paved the way for legislative intervention. One such intervention was the enactment of the Equal Remuneration Act, 1976, which sought to bridge the wage gap and ensure fairness in employment practices.

This article examines the salient features of the Equal Remuneration Act, 1976, its objectives, provisions, duties of employers, and landmark judicial interpretations.

Objectives of Equal Remuneration Act, 1976

The Equal Remuneration Act was enacted with the following primary objectives:

• To prevent gender-based discrimination in wages.
• To secure equal pay for equal work for men and women.
• To ensure that women are not discriminated against at the stage of recruitment, promotions, training, or transfers.
• To establish a mechanism for implementation and enforcement.

Constitutional Basis

The Act draws its authority from the Constitution of India, particularly from:

• Article 14 – Equality before law.
• Article 15 – Prohibition of discrimination on grounds of sex, caste, religion, etc.
• Article 15(3) – Permits special provisions for women.
• Article 16 – Equal opportunity in matters of public employment.
• Article 39(a) – Right of men and women to an adequate means of livelihood.
• Article 39(d) – Mandates equal pay for equal work for both men and women.
• Article 42 – Ensures humane conditions of work and maternity relief.

Thus, the Act is a legislative measure to give effect to the Directive Principles of State Policy, especially Article 39(d), which specifically mentions equal pay for equal work.

What are Salient Features of the Equal Remuneration Act, 1976?

The Act is notable for several reasons. Some of its salient features are:

Central Legislation

One of the most notable features of the Equal Remuneration Act is that it is a central legislation.

• The Act extends to the whole of India, ensuring uniformity in application.
• It covers both the organised sector (factories, companies, government establishments) and the unorganised sector (casual labour, temporary workers, contract workers, etc.).

This wide coverage ensures that women working in any industry or employment, whether formal or informal, are legally protected from wage discrimination.

Equal Remuneration

The core principle of the Act lies in Section 4, which imposes a statutory duty on employers to pay equal remuneration to men and women workers doing the same work or work of similar nature.

Key points include:

• Employers cannot reduce wages of either men or women in order to comply with the provision.
• If men and women were being paid different rates before the Act, the higher rate must be applied to both.
• Equality is based not on job titles but on the substance of the work performed.

This ensures that women are not treated as “cheaper labour” for the same tasks.

Non-Discrimination in Recruitment

The Act goes beyond wages and addresses recruitment practices under Section 5.

• Employers are prohibited from discriminating against women in matters of recruitment, promotions, training, or transfers.
• The only exception is when women are prohibited from undertaking certain jobs by law, such as in hazardous industries or night shifts.
• Importantly, the Act does not interfere with reservations or special provisions for Scheduled Castes (SC), Scheduled Tribes (ST), or other disadvantaged groups.

This provision ensures that women get an equal chance at securing jobs and progressing in their careers.

Wide Applicability

Another key feature is the Act’s wide applicability.

• It applies to all categories of workers – permanent, temporary, part-time, casual, and even daily wage workers.
• The law ensures protection irrespective of the duration of employment. Even if a woman is employed for just one day, she is entitled to the same wages as her male counterpart doing the same work.

This prevents employers from exploiting women workers through short-term or casual contracts.

No Overriding of Employee Rights

The Act establishes the principle that statutory rights cannot be overridden by private agreements.

• Any contract, settlement, or agreement that denies equal pay to women workers is declared void.
• Employers cannot avoid responsibility by making special arrangements with employees.

This feature ensures that the protective scope of the Act is non-negotiable and absolute, safeguarding employees from unfair bargaining practices.

Enforcement Authority

For any law to be effective, there must be a strong enforcement mechanism. The Equal Remuneration Act places enforcement responsibility on the Ministry of Labour and the Central Advisory Committee.

• The Advisory Committee can recommend measures to promote women’s employment in specific sectors.
• Inspectors are appointed to monitor compliance and check registers maintained by employers.
• This mechanism provides institutional support for ensuring that the objectives of the Act are fulfilled.

Definition of Work Equality

A unique feature of the Act is its broad definition of work equality. The determination of whether two jobs are the same or similar does not depend merely on job titles. Instead, it looks at multiple factors, such as:

• Qualifications required for the job,
• Duties and responsibilities,
• Reliability and accountability,
• Experience and skills,
• Confidentiality requirements,
• Functional needs of the organisation, and
• The position in the hierarchy.

By adopting such a broad and practical test, the Act ensures that employers cannot artificially differentiate jobs to justify unequal pay.

Penalties for Non-Compliance

To ensure accountability, the Act prescribes penalties for violations.

• Employers found guilty of contravening the provisions may face fines, imprisonment, or both.
• These penalties act as a deterrent against discriminatory practices.

Without penalties, the law would lack enforcement strength. By introducing strict consequences, the Act ensures greater compliance.

Importance of the Equal Remuneration Act

The Equal Remuneration Act holds immense importance in modern India. Some of the key reasons include:

• It empowers women by giving them economic independence.
• It helps reduce the gender pay gap.
• It ensures that workplaces follow the principle of fairness and justice.
• It aligns India with international commitments, such as the ILO Convention on Equal Remuneration (1951) and the Universal Declaration of Human Rights (1948).

Judicial Interpretation and Landmark Cases

Indian courts have played a key role in interpreting and expanding the scope of the Act.

Randhir Singh v. Union of India (1982)

• The Supreme Court held that equal pay for equal work is deducible from Articles 14 and 16.
• It is not a mere statutory right but a constitutional guarantee.

Mackinnon Mackenzie & Co. Ltd. v. Audrey D’Costa (1987)

• Female stenographers were paid less than male stenographers.
• The Court rejected the employer’s defence that they belonged to a different class.
• Held that such practices cannot be used to deny equal remuneration.

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

• Workers in similar posts across departments must be paid equally.
• Discrimination between such groups was struck down.

Bhagwan Dass v. State of Haryana (1987)

Court clarified that mode of recruitment or length of service is irrelevant if the nature of work is similar.

Sita Devi v. State of Haryana (1996)

The doctrine of equal pay was recognised as part of the equality clause under Article 14.

S. Nakara v. Union of India (1983)

A Constitutional Bench affirmed that the doctrine of equal pay for equal work has the status of a fundamental right in service jurisprudence.

Transition to the Code on Wages, 2019

The Code on Wages, 2019 has subsumed the Equal Remuneration Act, 1976. However, the principle of gender equality in wages is retained.

• Section 3 of the Code continues to prohibit gender-based discrimination in wages and recruitment.
• Thus, the spirit of the Act survives, even though its provisions have been integrated into the new wage code framework.

Conclusion

The Equal Remuneration Act, 1976 was a progressive and beneficial legislation that sought to establish fairness in workplaces across India. By ensuring equal pay for equal work and prohibiting gender discrimination in recruitment, it became a cornerstone in the fight for gender justice.

Its salient features—wide applicability, duties of employers, constitutional backing, penalties, and judicial reinforcement—made it a powerful instrument to challenge wage inequality.