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The United Nurses Association had earlier planned a complete strike on Saturday.
Recently, nurses in private hospitals in the State had gone on strike to press their charter of demands, including increasing their daily wages to Rs 1,500.
The compensation will be paid out of the resources of the State Employment Guaranteed Fund.
According to sources, the protesters demanded regularisation of their jobs and increase in the wages.
The main demands of workers are increase in wages, timely allotment of money for coir societies by the Coirfed and granting permission for coir societies to procure fibre independently.
Labour minister V Sivankutty welcomed the decision of the trade unions.
The Ministry of Home Affairs (MHA), in its March 29 circular, had asked all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown to contain COVID-19.
The government is yet to give any indication on the date the code comes into effect, even after being passed by Parliament.
In a normal day, the work hours, including breaks, would be nine hours. It should not extend beyond 12 hours, states the Draft Code on Wages (Central) Rules, 2019.
The Code on Wages Bill was earlier introduced in Lok Sabha on August 10, 2017, and was referred to Parliamentary Standing Committee which submitted its Report on December 81, 2018.