INSPECTOR-CUM-FACILITATOR

Section 51 - Appointment and Powers of Inspector-cum-Facilitators

1. Appointment of Inspector-cum-Facilitators:
o The appropriate government can appoint Inspector-cum-
Facilitators to oversee the implementation of this Code. These
inspectors will have jurisdiction across the entire state or specific
geographical areas or establishments, as assigned by the government.
2. Inspection Scheme:
o The government may create an inspection scheme to guide these
inspectors. This scheme could include using a web-based system for
inspections and collecting related information electronically.
3. Randomized Inspections:
o The government may also allow the random selection of
establishments for inspection, and the Inspector-cum-Facilitator will
be given jurisdiction over these randomly selected inspections.
4. Public Servant Status:
o Inspector-cum-Facilitators will be considered public servants under
Section 21 of the Indian Penal Code, meaning they have the legal
status and powers of a public official.
5. Powers and Duties of Inspector-cum-Facilitator:
o Advising Employers and Workers: They can provide advice to both
employers and employees on how to comply with the provisions of
this Code.
o Inspection: They are authorized to inspect the establishments
assigned to them by the government, following government-issued
instructions and guidelines.
6. Detailed Powers of Inspection:
o Examine Workers: They can interview any individual found in the
establishment who they reasonably believe is a worker of that
establishment.
 o Request Information: They can ask any person for information
regarding the names and addresses of workers.
o Search and Seizure: They can search for and seize documents,
registers, wage records, or notices that they believe are relevant to an
offence under this Code. They can also take copies of such
documents.
o Report Defects: They can report any defects or abuses in the
establishment that are not already covered by existing laws.
o Other Powers: They may exercise additional powers as prescribed by
the government.
7. Legal Obligation to Provide Information:
o Any person required to provide documents or information to the
Inspector-cum-Facilitator is legally bound to do so. Failing to
comply can lead to legal consequences under Sections 175 and 176 of
the Indian Penal Code.
8. Search and Seizure Process:
o The process of search and seizure carried out by the Inspector-cum-
Facilitator will follow the procedures of the Code of Criminal
Procedure, 1973, similar to the search conducted with a warrant
issued under Section 94 of the Code.
Summary:
 The appropriate government can appoint Inspector-cum-Facilitators to
enforce this Code. These inspectors can provide advice, conduct inspections,
request documents, interview workers, and seize records if necessary.
 The inspectors are legally considered public servants and have broad
powers to ensure compliance, including legal authority to collect
information, inspect establishments, and report issues not covered by other
laws.
 Any person who fails to cooperate with the inspector can face legal
consequences.
Offences and Penalties
Cognizance of offences.
Section 52 - Cognizance of Offences Under the Code
1. Who Can File a Complaint:
o A court can only take action (cognizance) on an offence under this
Code if a complaint is made by one of the following:
 The appropriate government or an authorized officer acting
on its behalf.
 An employee who has been directly affected.
 A registered trade union (as per the Trade Unions Act, 1926).
 An Inspector-cum-Facilitator who is enforcing the provisions
of this Code.
2. Jurisdiction of Courts:
o Despite the general provisions of the Code of Criminal Procedure,
1973, only courts of a certain level are allowed to try offences under
this Code. Specifically, the offence can only be tried in:
 A Metropolitan Magistrate or a Judicial Magistrate of the
First Class.
 Courts that are inferior (lower) in rank to these magistrates
cannot try cases under this Code.
Summary:
 For any offence under this Code, a complaint must be filed by the
government, a trade union, an affected employee, or an inspector.
 Additionally, only certain courts, specifically a Metropolitan Magistrate or
Judicial Magistrate of the First Class, are allowed to handle such cases.
Lower courts cannot hear or try offences under this Code.
Power of officers of appropriate Government to impose penalty in certain
cases.\
Section 53 - Enquiry and Imposition of Penalty
1. Appointment of Enquiry Officer:
 o Even if section 52 states that only specific authorities can file
complaints, for imposing penalties under certain sections (like clauses
(a) and (c) of sub-section (1), sub-section (2) of section 54, and sub-
section (7) of section 56), the appropriate government can appoint
an officer who holds at least the rank of Under Secretary to the
Government of India or an officer of equivalent rank in the State
Government.
o This appointment is made for holding an enquiry into alleged
violations, as specified by the Central Government.
2. Powers of the Enquiry Officer:
o The officer conducting the enquiry has the authority to summon
individuals who have knowledge of the facts and circumstances
related to the case.
o These individuals must provide evidence or produce documents that,
in the officer’s opinion, are useful or relevant to the enquiry.
o After conducting the enquiry, if the officer determines that an offence
has been committed under the provisions in question, they can impose
a penalty as they see fit, following the rules set out in the relevant
provisions.
Summary:
 When there’s a need to impose penalties under specific sections of this
Code, the appropriate government can appoint an enquiry officer with
certain authority.
 This officer can summon individuals and request documents to gather
information for their enquiry.
 If they find an offence has occurred, they can impose penalties in line with
the relevant sections of the Code.
Penalties for offences.
Section 54 - Penalties for Employer Offenses
1. Penalties for Underpayment (Clause a):
 o If an employer pays an employee less than what is owed to them
under this Code, the employer can be fined up to fifty thousand
rupees.
2. Penalties for Repeated Underpayment (Clause b):
o If an employer is convicted for underpaying an employee and, within
five years, is again found guilty of underpaying, they can face:
 Imprisonment for up to three months; or
 A fine of up to one lakh rupees; or
 Both imprisonment and fine.
3. Penalties for Contravention of Other Provisions (Clause c):
o If an employer violates any other provision of this Code or any related
rules or orders, they can be fined up to twenty thousand rupees.
4. Penalties for Repeated Contravention (Clause d):
o If an employer is convicted for violating other provisions (as
described above) and, within five years, commits the same violation
again, they can face:
 Imprisonment for up to one month; or
 A fine of up to forty thousand rupees; or
 Both imprisonment and fine.
5. Penalties for Non-Maintenance or Improper Maintenance of Records:
o If the employer fails to maintain or improperly maintains records as
required, they can be fined up to ten thousand rupees.
6. Opportunity to Comply Before Prosecution:
o Before initiating legal proceedings for violations (under clause c or
sub-section 2), an Inspector-cum-Facilitator must first give the
employer a written notice. This notice will:
 Provide a specific period for the employer to correct the
violation.
 o If the employer corrects the violation within the given time, the
prosecution will not be pursued.
o However, if the employer repeats the violation within five years from
the first violation, the prosecution will be initiated without offering
another chance to comply.
Summary:
 Employers face penalties for underpaying employees or violating provisions
of the Code. Penalties include fines, and in cases of repeated violations,
imprisonment can also be imposed.
 Employers are given a chance to correct certain violations before legal
action is taken, but this opportunity is not available if the violation is
repeated within five years.
Offences by companies.
Section 55 - Offenses Committed by Companies
1. Liability of Company Officials (Sub-section 1):
o If a company commits an offense under this Code, every person in
charge of the company's business at the time of the offense will be
considered responsible for the offense.
o These individuals, along with the company itself, can be held guilty
and punished.
o However, a person in charge will not be held liable if they can prove
that:
 The offense happened without their knowledge; or
 They took all necessary steps to prevent the offense from
happening.
2. Liability of Company Directors and Officers (Sub-section 2):
o If a company commits an offense, and it is shown that the offense
happened because of the consent or negligence of any director,
manager, secretary, or other officer of the company, then those
individuals will also be held guilty and can be punished.
Explanation:
o "Company": This term includes:
 A corporate body (any business entity),
 A firm,
 A limited liability partnership (LLP) under the LLP Act,
2008,
 Any other association of individuals.
o "Director": In the context of a firm, a partner is considered a
director.
Summary:
 When a company commits an offense, its executives, such as the person in
charge of the business, may also be held responsible, unless they prove they
were unaware or took steps to prevent the offense.
 If the offense was due to the consent or neglect of a company director,
manager, or officer, they too can be held guilty.
 A company includes various business structures, such as firms and LLPs,
and the term "director" also applies to partners in a firm.
Composition of offences.
Section 56 - Composition of Offenses
1. Compounding of Offenses (Sub-section 1):
o For offenses under this Code (except those punishable only with
imprisonment or imprisonment with a fine), the accused person can
apply to compound the offense.
o Compounding means settling the offense by paying a fine.
o A Gazetted Officer, specified by the appropriate Government, can
allow the compounding of the offense for 50% of the maximum fine
set for the offense.
o The process for compounding will be as prescribed by the
Government.
2. Exceptions to Compounding (Sub-section 2):
o Compounding cannot be done for a person who commits the same
offense again within five years from the date they:
 Had the earlier offense compounded, or
 Were convicted for a similar offense.
3. Supervision of the Compounding Process (Sub-section 3):
o The Gazetted Officer who has the power to compound offenses will
do so under the direction and supervision of the appropriate
Government.
4. Application for Compounding (Sub-section 4):
o Applications for compounding must be made in the prescribed
manner, as set by the Government.
5. Effect of Compounding Before Prosecution (Sub-section 5):
o If an offense is compounded before any prosecution is started, no
legal action (prosecution) will be taken against the person for that
offense.
6. Effect of Compounding After Prosecution (Sub-section 6):
o If an offense is compounded after prosecution has started, the
Gazetted Officer must inform the court in writing.
o Once the court is notified, the person whose offense has been
compounded will be discharged from the case.
7. Failure to Comply with Compounding Order (Sub-section 7):
o If a person does not follow the compounding order given by the
Gazetted Officer, they will be fined 20% of the maximum fine for the
offense, in addition to the original fine.
8. General Rule on Compounding (Sub-section 8):
o No offense under this Code can be compounded unless it follows the
procedures outlined in this section.
Summary:
 If someone commits an offense under this Code (except imprisonment-only
offenses), they can apply to have the offense compounded by paying a fine.
 This can be done before or after prosecution, but if the same offense has
been compounded or convicted in the past five years, it cannot be
compounded again.
 If an offense is compounded before prosecution, no legal case will follow. If
after prosecution, the court will discharge the person once notified.
 A failure to comply with the compounding order results in an additional fine.