SNS College of Technology

Coimbatore - 35

19BATE718-COMPENSATION AND REWARD

MANAGEMENT
Unit II-WAGE DETERMINATION

Topic: Guess?????

Department of Management Studies

Presented By,

Ms. VISHNUPRIYA V
 Recap

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 02/15

 Connect these
Pictures….

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 04/15

 Wage determination

▪ The Legal Framework for the payment of wages/Salaries is

governed mainly by four Legislation besides the guidelines
for managerial remuneration and relevant provisions in
the Indian Companies Act.
▪ The payment of wages Act,1936
▪ The minimum Wages act 1948
▪ The equal Remuneration Act 1972
▪ The payment of Bonus Act 1965

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 04/15

 Methods

 Unilaterally Pay Employee

 Collective Bargaining
 Pay Commission
 Wage boards
 Wage disputes

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 05/15

 Unilateral Pay Fixation

 Unilateral wage fixation by employer can be unfair to the

individual employees because the latter will have lesser
bargaining power vis-vis their employers, often tend to
encourage arbitrariness and raise questions about
fairness and equity.

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 06/15

 Collective Bargaining

▪ Collective bargaining is a process where by standards

are created to govern labour relations including
particularly wages and working conditions.
▪ Levels of Bargaining
1.Sectoral Bargaining
2.IndustryCum Region wide Agreements
3.Decentralized Firm/Plant level Agreement

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 07/15

 Pay Commissions
▪ The pay structure of the Central Government employees is
based on the recommendations of Pay Commissions set
up by the Central Government.
▪ The scheme provides for a limited extent of compulsory
arbitration on the following subjects:
(i) pay and allowances,
(ii) weekly hours of work,
(iii) leave of a class or grade of employees. The
Government, however, becomes the final authority in
deciding whether an issue can or cannot go for
arbitration.
02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 08/15
 Wage Boards

▪ A Wage Board is a tripartite body with representa­tives

of management, and workmen, presided over by an
independent person nominated by the Government.
▪ Concept of wage board was first enunciated by
committee on fair wages.
▪ It was commended by first five year plan and second
five year plan also considered wage board as an
acceptable machinery for settling wage disputes.

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 09/15

 Adjudication

▪ Though the adjudicators award is normally binding on

labour and management, it is not uncommon for
parties to move the courts over the award of the
adjudicator. In such cases the Supreme Court is the
final arbiter.
▪ There have been, however, instances where even
Supreme Court verdicts had problems in
implementation/enforcement due to ground realities

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 10/15

 Time for the
assessment…

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 11/15

 MCQ

1.In which Year The payment of wages Act _________

2. In Which Year the minimum Wages act ________

3.In which year the equal Remuneration Act ______

4. In which Year the payment of Bonus Act ______

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 12/15

 Summary

 Unilaterally By Employee
 Through collective Bargaining between employer
and union
 Pay Commission for civil service
 Wage boards
 Wage disputes

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 13/15

 Reference

 https://byjus.com/free-ias-prep/ilo/
 https://www.investopedia.com/terms/i/international-labo
ur-organization.asp
 https://www.hrzone.com/hr-glossary/what-is-the-internati
onal-labour-organization
 https://www.hrzone.com/hr-glossary/what-is-the-
international-labour-organization

02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 13/15

 REACH US

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02.02.2021 Ms.V.VishnuPriya AP / MBA – CRM 15/15