Code on wages
Other chapters
Dr Showry
Constitution of Advisory board
Advisory board -42
Central Advisory board
Persons nominated by Centre State Advisory board
(a) Representing employers; (a) Representing employers;
(b) Representing employees shall be (b) Representing employees
equal in number of employers (c) Independent persons, not
(c) independent persons, not exceeding 1/3 of the total of the
exceeding 1/3rd of the total members Board or committee
(d) 5 representatives nominated by (7) 1/3 of members shall be women
central Govt (a) 1 Member appointed by the State
(2) 1/3 members be women Government as the Chairperson
Centre appoints Independent member
as Chairperson of Board.
42. Functions of Advisory Boards
• Central Advisory • State Advisory Board
• (a) Fix/revises minimum wages • (a) Advise Fix/revision of MW
• (b) Increase women employment • (b) Provide increasing
• (c) Extent to which women may be employment opportunities for
employed in establishments the women; nature of work, hours of
Central Govt may notify work, suitability of women for
• (d) Any other matter relating to employment, part time
this Code, and on such advice, the • (c) Extent to which women may
Central Government may issue be employed
directions to the State
• (d) other State Govt may refer to
the Board.
Chapter VI Payment of dues, claims
and audit
43. Responsibility 44. undisbursed 45. Claims under 46. Reference of
for payment of dues in case of death Code and procedure disputes under this
various dues. of employee thereof. Code.
47. Accuracy of
balance sheet, P & L 48. Audit of AC of
50. Records, returns
A/C of corp & employers not being 49. Appeal. and notices
companies corp/ companies.
Chapter VI
Payment of dues, claims and audit
• Responsibility for pay of various dues under Code
– Employer, The company or firm , Association
– Any person who is the proprietor of Establishment,
• 44. Pay of dues on account of death/missing ?
– Paid to Person nominated
– Deposited with the authority prescribed
– Authority deals with the amounts deposited
45 Claims and procedure
• The Govt appoint one or more authorities not below rank of
Gazette Officer to hear and determine claims under Code
– Order Payment of compensation extending upto 10 times
– Decide within a period of 3 months
– If employer fails to pay claim Issue a certificate of recovery
to Collector or District Magistrate
• Who shall make the claim for conflict wr to Bonsus ?
• Any application before the authority for claim be made by
– The employee concerned, Any Trade Union registered as
per, 1926, The Inspector-cum-Facilitator.
Claims and procedure
• Claims and procedure
– A single application for any number of employees
– Application filed within 3 years from the date of claims
– May, entertain application after 3 years on sufficient cause
• 46. Reference of disputes
– Dispute between an employer & employees to be ID
– (a) Fixation of bonus or Eligibility for pay of bonus
– (b) The application of rules of Code, bonus, to a PSU
establishment
47. Accuracy of balance sheet
• During the course of proceedings before authorities
• Balance sheet and the profit and loss account, duly audited by
the CAG of India are produced before the said authority
– May presume particulars in balance sheet to be accurate
– Not necessary to prove the accuracy of such statements
• If the authorities find them to be Not accurate
– Take such steps necessary to find out the accuracy
– Order the corporation to furnish to the Trade Union or the
employees If clarification is necessary
Employers not being corporations
• A claim, dispute or appeal with respect to bonus payable is
• Not a corporation or a company
• The authority under whom claim of employees is pending
– Accounts of employer audited are produced before such authority
• If authority finds that the accounts have not been audited,
– may, by order, direct the employer to get his accounts audited within such time
– thereupon the employer shall comply with such direction
• Where an employer fails to get the accounts audited
– Get accounts audited by auditor or auditors as it thinks fit
– Expenses of auditor be paid by the employer/ recoverable
Appeal.
• 49. (1) Any person aggrieved by an order by the authority
• Appeal within 90 days from the date of such order
• Appeal may entertained after 90 days if satisfied for delay
• Appellate authority after hearing the parties in the appeal
– Dispose of the appeal within a period of 3 months.
– outstanding dues under the orders of the appellate authority
shall be recovered by issuing the certificate of recovery
50 Records, returns and notices.
• Every employer shall maintain a register of persons employed
– Muster roll, wages and other details prescribed.
• (2) Display a notice on the notice board at a prominent place
– Abstract of Code, Category-wise wage rates of employees
– Wage period, day or date, time of pay of wages
– Name and address of the Inspector-cum-Facilitator
• (3) Issue wage slips in such form/manner prescribed
• 4. Not applied to Employer who employs not more than 5
persons for agriculture or domestic purpose but produce the
reasonable proof of the payment of wages
Chapter VII
Inspector- Facilitators powers.
• Appropriate govt by notification appoints Inspector-cum-
Facilitators
– to exercise powers under this code throughout the State
– or such geographical limits assigned in relation to one or more
establishments situated in such State or geographical limits
• Appropriate govt Lay down an inspection scheme
– Government, as the case may be by notification, lay down an
inspection scheme
– Also provide for generation of a web-based inspection and calling of
information relating to the inspection under this Code electronically.
Inspector- Facilitators powers.
• (3) Appropriate Government by notification, confer
jurisdiction of randomized selection of inspection for the
purposes of this Code
• (4) Every Inspector-cum-Facilitator appointed under sub-
section (1) shall be deemed to be public servant
• (5) The Inspector-cum-Facilitator may––
• (a) Advice to employers and workers relating to compliance
with the provisions of this Code
• (b) Inspect the establishments as assigned to subject to the
instructions or guidelines issued by the appropriate
Government from time to time.
Inspector- Facilitators powers.
• (a) Examine any person who is believed is a worker
• (b) Require any person to give any information, in his power
to the names/addresses of persons
• (c) Search, seize or take copies of register, record of wages or
notices as relevant to an offence under this Code
• (d) Bring to notice of the appropriate Govt defects or abuses
• (e) exercise such other powers as may be prescribed
• (7) legally bound to Produce any document or to give any
information required by a Inspector-cum-Facilitator
• (8) The provisions of the Code of Criminal Procedure, 1973
shall, apply to the search or seizure under sub-section
Chapter VIII (52-56)
OFFENCES AND PENALTIES
53. Power of officers of
52. Cognizance of appropriate Government
offences. 54. Penalties for offences
to impose penalty in
certain cases
55. Offences by 56. Composition of
companies. offences.
CHAPTER VIII
OFFENCES AND PENALTIES
• .
52. No court shall take cognizance of any offence
– Under Code against authority for actions taken in good faith
– No court inferior to that of a Metropolitan Magistrate or
Judicial Magistrate of the first class shall try the offences
• 53. Power of officers to impose penalty
• 1. Hold an enquiry - Manner prescribed by Central govt
• 2. Power to summon and enforce attendance of any person
acquainted with the facts and circumstances of the case
• 3. To demand evidence or to produce any document may be
useful for or relevant to the subject matter of the enquiry
• 4. Impose such penalty as he thinks fit if he is satisfied that
the person has committed any offence under the code
54.Penalties for offences
• Rs 50k for paying less than • Inspector-cum-Facilitator
the amount due as per Code • Before initiation of
• Similar offence within 5 prosecution for offences
years then 3 months or 1 • Give an opportunity to
lakh , both comply with provisions
• Rs 20k for violation of any • Written direction, lay
other provision down a time period for
• imprisonment of month such compliance
or fine extend to Rs 40k • if the employer complies
• Rs 10k - non /improper with the direction within
maintenance of records such period, not initiate
prosecution
55. Offences by companies.
• If a company commits an offence under this Code?
• A Person who is in charge /responsible for the conduct of
business of the company is Liable -Deemed to be guilty
• Unless he proves that
– Offence was committed without his knowledge
– He exercised all due diligence to prevent it
• Be deemed to be guilty and Liable to be punished
– Director, Manager, Secretary or other officer of company
– Proved that the offence has been committed with the
consent or connivance of or any neglect on the part
Offences by companies.
• 56. Appropriate Govt by notification,
– May, impose a sum of 50% of the maximum fine provided
for such offence
– No exemption – for the second similar offence within 5
years from the date of commission.
– If the composition of any offence is made after the
institution of any prosecution, the officer in writing, bring
to the notice of the court
Chapter IX Miscellaneous (57-69)
58. Protection of
57. Bar of suits. action taken in good 59. Burden of proof. 60. Contracting out.
faith
61. Effect of laws 64. Protection
63. Exemption of
agreements, etc., against attachments
62. Delegation of employer from
inconsistent with of assets of
powers. liability in certain
Code. employer with
cases
Government
65. Power of 67. Power of 68. Power to
Central 66. Saving. appropriate remove
Government to give Government to difficulties
directions. make rules.
69. Repeal
CHAPTER IX
MISCELLANEOUS
• 58 Bar of suits.
– No court shall entertain any suit for recovery of
• Min wages, deduction from wages, discrimination in wages ,
bonus
– No suit, prosecution lie against the appropriate Govt or any
officer of Government for anything done in good faith
• 59. Burden of proof lies with the employer
– In case of conflict or dispute for non payment of
remuneration/bonus /wages, unauthorized deductions
Others
• 60. Contracting out-
– Relinquishing the right to any Amount under this Code be null and void
• 61 Inconsistent with this Code.
– Any Law violating with this Code is not enforceable
– Protection against attachments of assets employer deposited - Any
amount due to employer from that Government deposited to secure the
due performance of a contract in respect of such contract shall not be
liable to attachment
• 62. Delegation of powers. - AG may, by notification, direct anyauthority
• (a) If AG is the CG then Officer or authority subordinate to the CG
• (b) AG is SG Such officer or authority subordinate to the SG
Others
• 63. Exemption of employer from liability
• Where employer is charged with an offence under Code
– Entitled to charge any other person as an actual offender
– Other person be convicted/ be liable to punishment
• Conditions
• If he brings before the court at the time appointed
– Proofs to the satisfaction of the court, he used due diligence
to enforce the execution of Code
– Other person committed the offence in question without his
knowledge, consent or connivance
Others
• 64. Protection against attachments of assets of employer
– Any amount deposited with the appropriate Government by an
employer to secure the due performance of a contract shall not
be liable to attachment under order of any court
• 65. Power of Central Government to give directions
– Centre Gives directions for the Execution of the provisions of
this Code in the State
– The State Government shall abide by such directions
• 66.
– Nothing contained in this Code shall be deemed to affect
– MGandhi National Rural Employment Guarantee Act, 2005
– The Coal Mines
– Provident Fund and Miscellaneous Provisions Act, 1948
67 Power of appropriate Govt.
• Make rules to enforce this code • Procedure for
• Manner of calculating the wages – The imposition of fines
• The arduousness of work to be – Form of the register to record
taken into account for Min. wages all fines
• Employee employed for less than – Deductions for absence from
the requisite number of hours duty
• Regulate the Boards, committees – Deductions for damage or loss
• Manner of composition of offence – Form of the register to record
• Recovery of advance after all deductions
employment began and not – Deductions for recovery of
already earned loans and the rate of interest
Power of appropriate
Government to make rules
• Authority / manner of depositing • Maintenance of a register
various undisbursed amts • Issuing wage slips
• Single application in respect of a • Deduct loans from any welfare fund
number of employees • Recovery of excess
• An appeal to appellate authority • Approval for imposing fine
• Powers of the Inspector Facilitator • Exhibition of the acts/ omissions
• utilizing excess of allocable • fixing floor wage
surplus for set on
• Set on/set off for the 6th/ 7th year
• utilizing the minimum amount or
• Calculate gross profit
the deficiency to be carried
forward for being set off in the • Manner of holding an enquiry
succeeding accounting year up to • Every rule made by the Central
Govt be laid, before Parliament
the fourth accounting year
• Every rule made by the State Govt
be laid before the StateLegislature
Others
• 68. (1) Difficulty in giving • 69.Repealed
effect to the this Code • The Payment of Wages Act,
• Central Govt may, remove 1936
the difficulty by an order in • The minimum wages act,
the Official Gazette, 1948,
• No such order after the • The Payment of Bonus Act,
expiry of 3 years from the 1965
commencement of Code. • The equal remuneration act,
1976
