Module III – Payment of Wages and Bonus

Shibam Talukdar
 Introduction
• In an economy where even minimum wages are not paid to the
workers, the need to protect the wages earned by them has great
significance.
• There was a practice of deduction of two days’ pay for one day’s
absence.
• So, to prevent unauthorized deductions from wages and to ensure
regular and prompt payment of wages, the Payment of Wages Act,
1936 (“PWA”) was passed and came into force in 1937.
• The PWA will get repealed by the Code on Wages 2019.
 Objectives of Payment of Wages
• To ensure that wages payable to employed persons are
disbursed by the employers within the prescribed time limit.

• To prohibit unauthorised deductions other than those

authorised by law.

• To provide a machinery to the employees for the claims

against unauthorised deductions and irregular payment of
wages.
 Code on Wages, 2019 (“COW”)
• Chapter III of the COW provides for provisions regulating
the payment of Wages.

• It has brought various changes with respect to PWA:

applicability, wage fixation, time-limit, claims, penalties,
enforcement.
 Applicability
• The applicability of the PWA was limited.

• It only applied to persons employed in a factory, railway

administration, and persons employed in industrial or other
establishments.

• Industrial or other establishment was defined as services provided by

motor transport, tram service, air service, dock, wharf, in land vessel,
quarry, oilfield, plantation and mine.
 Applicability
• It also included establishment in which any work relating to the
construction, development or maintenance of buildings, roads,
bridges or canals, or relating to operation connected with navigation,
irrigation, development or maintenance of buildings, roads, bridges
or mission and distribution of electricity or any other form of power
is being carried on.

• The appropriate government is empowered to include any other

establishment in which employed persons requires protection.

• The COW is applicable to establishments, excluding Government

establishments, unless notified by the appropriate Government.
 Applicability
• Section 2(m). “establishment” means any place where any industry,
trade, business, manufacture or occupation is carried on and includes
Government establishment

• Section 2(o). “Government establishment” means any office or

department of the Government or a local authority

• The chapter shall not apply to Government establishments unless

notified by the appropriate Government in that regard.
 Applicability

• The Code on Wages, 2019 has now broadened the

ambit of applicability of payment of wages.

• This Code aims to apply to the maximum number of

workers of the country working in organised as well
as unorganised sectors.
 Section 15. Mode of Payment of Wages.
• All wages shall be paid in current coin or currency notes or by
cheque or by crediting the wages in the bank account of the
employee or by the electronic mode.

• Provided that the appropriate Government may, by notification,

specify the industrial or other establishment, the employer of which
shall pay to every person employed in such industrial or other
establishment, the wages only by cheque or by crediting the wages in
his bank account.
 Wage Period
• Wage period is the period in respect of which wages are ordinarily
paid.

• Wage period means the period after which the wages of an employed
person shall be paid.

• Under the Code wage period, must be either daily basis, weekly basis,
fortnightly or monthly basis.
 Wage Period
• The employer shall fix the wage period for employees either as daily
or weekly or fortnightly or monthly subject to the condition that no
wage period in respect of any employee shall be more than a month:

• Provided that different wage periods may be fixed for different

establishments.
 Section 17. Time-limit for Payment of Wages.
• (1) The employer shall pay or cause to be paid wages to the
employees, engaged on—
(i) Daily basis, at the end of the shift;
(ii) Weekly basis, on the last working day of the week, that is to
say, before the weekly holiday;
(iii) Fortnightly basis, before the end of the second day after the
end of the fortnight;
(iv) Monthly basis, before the expiry of the seventh day of the
succeeding month.”
Section 17. Time-limit for Payment of Wages.
• (2) Where an employee has been—
(i) removed or dismissed from service; or
(ii) retrenched or has resigned from service, or became
unemployed due to closure of the establishment,
the wages payable to him shall be paid within two working days
of his removal, dismissal, retrenchment or, as the case may be,
his resignation.
 Section 17. Time-limit for Payment of Wages.
• (3) Notwithstanding anything contained in sub-section (1) or sub-
section (2), the appropriate Government may, provide any other time
limit for payment of wages where it considers reasonable having
regard to the circumstances under which the wages are to be paid.

• (4) Nothing contained in sub-section (1) or sub-section (2) shall affect

any time limit for payment of wages provided in any other law for
the time being in force.
 Section 18. Deductions which may be made from wages.
• (1) Notwithstanding anything contained in any other law for the time being in force, there
shall be no deductions from the wages of the employee, except those as are authorised under
this Code.
Explanation.––For the purposes of this sub-section,—
(a) any payment made by an employee to the employer or his agent shall be deemed to be a
deduction from his wages;
(b) any loss of wages to an employee, for a good and sufficient cause, resulting from—
(i) the withholding of increment or promotion, including the stoppage of an
increment; or
(ii) the reduction to a lower post or time-scale; or
(iii) the suspension,
shall not be deemed to be a deduction from wages in a case where the provisions made by the
employer for such purposes are satisfying the requirements specified in the notification
issued by the appropriate Government in this behalf.
 Section 18. Deductions which may be made from wages
• (2) Deductions from the wages of an employee shall be made in accordance with
the provisions of this Code, and may be made only for the following purposes,
namely:—
(a) fines imposed on him;
(b) deductions for his absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the
employee for custody; or for loss of money for which he is required to account,
where such damage or loss is directly attributable to his neglect or default;
(d) deductions for house-accommodation supplied by the employer or by
appropriate Government or any housing board set up under any law for the time
being in force, whether the Government or such board is the employer or not, or any
other authority engaged in the business of subsidising house-accommodation which
may be specified in this behalf by the appropriate Government by notification
 Section 18. Deductions which may be made from wages

(e) deductions for such amenities and services supplied by the employer as
the appropriate Government or any officer specified by it in this behalf may, by
general or special order, authorise and such deduction shall not exceed an amount
equivalent to the value of such amenities and services.
Explanation.––For the purposes of this clause, the expression “services” does not
include the supply of tools and raw materials required for the purposes of
employment;

(f) deductions for recovery of —

(i) advances of whatever nature (including advances for travelling
allowance or conveyance allowance), and the interest due in respect thereof, or for
adjustment of overpayment of wages;
(ii) loans made from any fund constituted for the welfare of labour, as
may be prescribed by the appropriate Government, and the interest due in respect
thereof;
 Section 18. Deductions which may be made from wages

(g) deductions for recovery of loans granted for house building or

other purposes approved by the appropriate Government and the interest
due in respect thereof;

(h) deductions of income-tax or any other statutory levy levied by

the Central Government or State Government and payable by the employee
or deductions required to be made by order of a court or other authority
competent to make such order;

(i) deductions for subscription to, and for repayment of advances from
any social security fund or scheme constituted by law including provident
fund or pension fund or health insurance scheme or fund known by any
other name;
 Section 18. Deductions which may be made from wages

(j) deductions for payment of co-operative society subject to

such conditions as the appropriate Government may impose;

(k) deductions made, with the written authorisation of the

employee, for payment of the fees and contribution payable by him for
the membership of any Trade Union registered under the Trade
Unions Act, 1926;

(l) deductions for recovery of losses sustained by the railway

administration on account of acceptance by the employee of
counterfeit or base coins or mutilated or forged currency notes;
 Section 18. Deductions which may be made from wages
(m) deductions for recovery of losses sustained by the railway administration
on account of the failure of the employee to invoice, to bill, to collect or to account for
the appropriate charges due to the railway administration whether in respect of fares,
freight, demurrage, wharfage and cranage or in respect of sale of food in catering
establishments or in respect of commodities in grain shops or otherwise;

(n) deductions for recovery of losses sustained by the railway administration

on account of any rebates or refunds incorrectly granted by the employee where such
loss is directly attributable to his neglect or default;

(o) deductions, made with the written authorisation of the employee, for
contribution to the Prime Minister’s National Relief Fund or to such other fund as the
Central Government may, by notification, specify.
 Section 18. Deductions which may be made from wages

• (3) Notwithstanding anything contained in this Code and subject to the

provisions of any other law for the time being in force, the total amount
of deductions which may be made under sub-section (2) in any wage
period from the wages of an employee shall not exceed fifty per cent. of
such wages.

• (4) Where the total deductions authorised under sub-section (2) exceed
fifty per cent. of the wages, the excess may be recovered in such manner,
as may be prescribed.

• (5) Where any deduction is made by the employer from the wages of an
employee under this section but not deposited in the account of the trust
or Government fund or any other account, as required under the
provisions of the law for the time being in force, such employee shall not
be held responsible for such default of the employer.
 Section 19. Fines.
(1)No fine shall be imposed on any employee save in respect of those acts and omissions on his part
as the employer, with the previous approval of the appropriate Government or of such authority
as may be prescribed, may have specified by notice under sub-section (2).

(2)A notice specifying such acts and omissions shall be exhibited in such manner as may be
prescribed, on the premises in which the employment is carried on.

(3)No fine shall be imposed on any employee until such employee has been given an opportunity of
showing cause against the fine or otherwise than in accordance with such procedure as may be
prescribed for the imposition of fines.

(4)The total amount of fine which may be imposed in any one wage-period on any employee shall
not exceed an amount equal to three per cent. of the wages payable to him in respect of that
wage-period.
 Section 19. Fines.
(5) No fine shall be imposed on any employee who is under the age of fifteen years.

(6) No fine imposed on any employee shall be recovered from him by instalments or
after the expiry of ninety days from the day on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission
in respect of which it was imposed.

(8) All fines and all realisations thereof shall be recorded in a register to be kept in
such manner and form as may be prescribed; and all such realisations shall be
applied only to such purposes beneficial to the persons employed in the
establishment as are approved by the prescribed authority.
 Section 20. Deductions for absence from duty.

(1) Deductions may be made under clause (b) of sub-section (2) of

section 18 only on account of the absence of an employee from the
place or places where by the terms of his employment, he is
required to work, such absence being for the whole or any part of
the period during which he is so required to work.
 Section 20. Deductions for absence from duty.
(2) The amount of such deduction shall in no case bear to the wages payable to the employed
person in respect of the wage-period for which the deduction is made in a larger proportion
than the period for which he was absent bears to the total period within such wage-period
during which by the terms of his employment he was required to work:

Provided that, subject to any rules made in this behalf by the appropriate Government, if ten
or more employed persons acting in concert absent themselves without due notice (that is to
say without giving the notice which is required under the terms of their contracts of
employment) and without reasonable cause, such deduction from any such person may include
such amount not exceeding his wages for eight days as may by any such terms be due to the
employer in lieu of due notice.

Explanation.––For the purposes of this section, an employee shall be deemed to be absent from
the place where he is required to work if, although present in such place, he refuses, in
pursuance of a stay-in strike or for any other cause which is not reasonable in the
circumstances, to carry out his work.
 Section 21. Deductions for damage or loss.
(1) A deduction under clause (c) or clause (n) of sub-section (2) of
section 18 for damage or loss shall not exceed the amount of the
damage or loss caused to the employer by negligence or default of the
employee.

(2) A deduction shall not be made under sub-section (1) until the
employee has been given an opportunity of showing cause against the
deduction or otherwise than in accordance with such procedure as
may be prescribed for the making of such deductions.

(3) All such deductions and all realisations thereof shall be recorded in a
register to be kept in such form as may be prescribed.
Section 22. Deductions for services rendered.

A deduction under clause (d) or clause (e) of sub-section (2)

of section 18 shall not be made from the wages of an
employee, unless the house-accommodation amenity or service
has been accepted by him as a term of employment or
otherwise and such deduction shall not exceed an amount
equivalent to the value of the house-accommodation amenity
or service supplied and shall be subject to such conditions as
the appropriate Government may impose.
Section 23. Deductions for recovery of advances.
Deductions under clause (f) of sub-section (2) of section 18 for recovery of
advances given to an employee shall be subject to the following conditions,
namely:––
(a) recovery of advance of money given to an employee before the
employment began shall be made from the first payment of wages to him in
respect of a complete wage-period but no recovery shall be made of such
advances given for travelling expenses;
(b) recovery of advance of money given to an employee after the
employment began shall be subject to such conditions as may be prescribed;
(c) recovery of advances of wages to an employee not already earned
shall be subject to such conditions as may be prescribed
Section 24. Deductions for recovery of loans.
• Deductions under clause (g) of sub-section (2) of
section 18 for recovery of loans granted to an
employee, regulating the extent to which such loans
may be granted and the rate of interest payable
thereon, shall be such as may be prescribed.
 Section 25. Chapter not to apply to
Government establishments.
• The provisions of this Chapter shall not apply to the
Government establishments unless the appropriate
Government, by notification, applies such provisions
to the Government establishments specified in the
said notification.
 Bank of India, Bombay and Anr. v. T.S. Kelawala
Bombay and Ors., (1988) II LLJ 264 (Bom)
• The Bank employees demanded wage revision and pending
acceptance of demand decided to go on 4 hours strike daily.
• Bank issued a circular to deduct full days’ wages of such
employees who participated in the strike.
• It was held that strikes and demonstrations are legitimate
forms of protest and they are not banned in the country.
• By an administrative circular, the legitimate mode of protest
allowed and recognised by law cannot by stifled.
 Bank of India, Bombay and Anr. v. T.S. Kelawala
Bombay and Ors., (1988) II LLJ 264 (Bom)
• It was further held that Payment of Wages Act is regulatory. Section 7(2)
read with Section 9 of the Act provides the circumstances under which
and the extent to which deduction can be made.
• It is only when the employer has right to make deduction, resort should be
had to the Act to ascertain the extent to which the deduction can be made.
• No deduction exceeding the limit provided by the Act is permissible even
if the contract so provides.
• There cannot be any contract contrary to or in terms wider than the
import of Sections 7 and 9 of the Act.
• Therefore, wage deduction cannot be made under Section 7(2) of the
Payment of Wages Act if there is no such power to the employer under
the terms of contract.
Surendranathan Nair and Ors. v. Senior Divisional
Personal Officer (Rlys.), (1988) I LLJ 227 (Kerala)
• Some of the railway employees had applied for casual leave for
participating in an agitation against the Railway Administration.
• The leave was refused but the employees participated in the
agitation.
• The management deducted the wages treating the period of
leave applied for as absence from duty.
• It was held that the leave rules to the railway employees are
contained in the Railway Establishment Code and the rules made
thereunder.
Surendranathan Nair and Ors. v. Senior Divisional
Personal Officer (Rlys.), (1988) I LLJ 227 (Kerala)
• The Code derives its authority from Article 309 of the Constitution
of India and the rules made under the delegated power.
• These rules have a general application to all non-gazetted railway
servants.
• Rejection of leave under such circumstances was legal and proper.
• Absence from duty, especially for the purpose of participation in an
agitation against the management is unauthorised.
• An unauthorized absentee has no right to compel payment of wages
for the period of unauthorised absence.
Cases related to COVID-19 and labour issues

• Ludhiana Hand Tools Association v. Union of India, [Writ

Petition (Civil) Diary No(s). 10993/2020]

• Ficus Pax Private Limited v. Union Of India, Writ Petition (C)

Diary No. 10983 of 2020

• Twin City Industrial Employers Association v. Union of India

 Payment of Bonus: History
• The practice of paying bonus in India appears to have originated during
First World War when certain textile mills granted 10% of wages as war
bonus to their workers in 1917.
• In certain cases of industrial disputes, demand for payment of bonus was
also included.
• In 1950, the Full Bench of the Labour Appellate evolved a formula for
determination of bonus.
• A plea was made to raise that formula in 1959.
• At the second and third meetings of the Eighteenth Session of Standing
Labour Committee (GOI) held in New Delhi in March/April 1960, it was
agreed that a Commission be appointed to go into the question of bonus
and evolve suitable norms.
 Payment of Bonus: History
• A Tripartite Commission was set up by the Government of India to
consider in a comprehensive manner, the question of payment of
bonus based on profits to employees employed in establishments and
to make recommendations to the Government.
• The Government of India accepted the recommendations of the
Commission subject to certain modifications.
• To implement these recommendations the Payment of Bonus
Ordinance, 1965 was promulgated on 29th May 1965.
• To replace the said Ordinance, the Payment of Bonus Bill was
introduced in the Parliament.
• The Bill received Presidential Assent on 25th September 1965.
 Payment of Bonus: Introduction
• The term ‘bonus’ is not defined in the Payment of Bonus Act, 1965
or the Code on Wages, 2019.
• Bonus may be defined as “money or an equivalent given in addition to
an employee’s usual compensation”.
• Bonus may also be defined as “an extra amount of money that is
given to an employee as a present or reward for good work as well as
the money you were expecting”.
• Provisions in relation to Payment of Bonus is mentioned in Chapter
IV of the Code on Wages, 2019.
 Section 26. Eligibility for Bonus, etc.
• There shall be paid to every employee by his employer, who has put in at
least 30 days work, an annual minimum bonus calculated:
• at the rate of 8 and1/3 percent (i.e., 8.33%) of the wages earned by the
employee or
• one hundred rupees, whichever is higher whether or not the employer
has any allocable surplus during the previous accounting year.
• The allocable surplus exceeds the amount of minimum bonus payable to
the employees, the employer shall, in lieu of such minimum bonus, be
bound to pay bonus to every employee in respect of that accounting year,
subject to a maximum of 20% of such wages.
• Where an employee has not worked for all the working days in an
accounting year, if such bonus is higher than 8 and 1/3 percent of the
salary or wage, shall be proportionately reduced.
 Section 28. Computation of number of working days.
• An employee shall be deemed to have worked in an establishment
in any accounting year also on the days on which:
a) he has been laid off under the Industrial Employment (Standing
Orders) Act, 1946 or Industrial Disputes, Act, 1947, or under
any other law;
b) he has been on leave with salary or wages;
c) he has been absent due to temporary disablement caused by
accident arising out of and in the course of his employment; and
d) the employee has been on maternity leave with salary or wages,
during the accounting year.
 Section 29. Disqualification for bonus.
• An employee shall be disqualified from receiving bonus, if he is
dismissed from service for—
1) fraud; or
2) riotous or violent behaviour while on the premises of the
establishment; or
3) theft, misappropriation or sabotage of any property of the
establishment; or
4) conviction for sexual harassment.
 Section 38. Deduction of certain amounts
from bonus payable.
• Where in any accounting year, an employee is found
guilty of misconduct causing financial loss to the
employer, then, it shall be lawful for the employer to
deduct the amount of loss from the amount of bonus
payable by him to the employee in respect of that
accounting year only and the employee shall be
entitled to receive the balance, if any.
Section 39. Time limit for payment of bonus.
(1) Bonus shall be paid by crediting it in the bank account of the
employee by his employer within a period of 8 months from the
closing of the accounting year.
The appropriate Government or such authority may, upon an
application by the employer and for sufficient reasons, by order,
extend the said period of 8 months to further period as it thinks
fit, that the total period so extended shall not exceed 2 years.

(2) If there is a dispute for payment, the employer shall pay 8 and 1/3
percent of the wages earned by the employee within a period of 8
months from the closing of the accounting year.
 Section 41. Non-applicability of this Chapter.
This Chapter shall not apply to the employees employed—
a) by the LIC;
b) by the Merchant Shipping Act, 1958;
c) by the Dock Workers (Regulation of Employment) Act, 1948;
d) by or under the authority of any department of the Central Government or a State
Government or a local authority;
e) by the Indian Red Cross Society;
f) by universities and other educational institutions;
g) by institutions including hospitals, chamber of commerce and social welfare institutions
established not for purposes of profit;
h) by the Reserve Bank of India;
i) by public sector financial institution other than a banking company;
j) by inland water transport establishments operating on routes passing through any other
country;
k) employees of any other establishment which the appropriate Government may, by notification,
exempt having regard to the overall benefits under any other scheme of profit sharing
available in such establishments to the employees.
 Chapter VII. Inspector-cum-Facilitator.
• Definition is provided in Chapter I of the Code.
• Section 2(r). “Inspector-cum-Facilitator” means a person appointed by the
appropriate Government under sub-section (1) of section 51.

• Section 51(1) states that the appropriate Government may, by notification,

appoint Inspector-cum-Facilitators for the purposes of this Code who shall
exercise the powers conferred on them under sub-section (4) throughout
the State or such geographical limits assigned in relation to one or more
establishments situated in such State or geographical limits or in one or
more establishments, irrespective of geographical limits, assigned to him
by the appropriate Government, as the case may be.
• Section 51(2) states that the appropriate Government may, by notification,
lay down an inspection scheme.
Powers and Functions of Inspector-cum-Facilitator

• 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 him by the
appropriate Government,
subject to the instructions or guidelines issued by the
appropriate Government from time to time.
 Powers and Functions of Inspector-cum-Facilitator
• Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed
to be public servant within the meaning of section 21 of the Indian Penal Code.
• Subject to the above condition, the Inspector-cum-Facilitator may—
a) examine any person who is found in any premises of the establishment, whom
the Inspector-cum-Facilitator has reasonable cause to believe, is a worker of
the establishment;
b) require any person to give any information, which is in his power to give with
respect to the names and addresses of the persons;
c) search, seize or take copies of such register, record of wages or notices or
portions thereof as the Inspector-cum-Facilitator may consider relevant in
respect of an offence under this Code and which the Inspector-cum-Facilitator
has reason to believe has been committed by the employer;
d) bring to the notice of the appropriate Government defects or abuses not
covered by any law for the time being in force; and
e) exercise such other powers as may be prescribed.
 Section 45. Claims under Code and procedure thereof.
• The appropriate Government may, by notification, appoint one or more authorities, not
below the rank of a Gazetted Officer, to hear and determine the claims.
• The authority may order, the payment of compensation in addition to the claim
determined, which may extend to ten times of the claim determined and endeavour shall
be made by the authority to decide the claim within a period of three months.
• If an employer fails to pay the claim determined and compensation ordered to be paid,
the authority shall issue a certificate of recovery to the Collector or District Magistrate
of the district where the establishment is located who shall recover the same as arrears
of land revenue and remit the same to the authority for payment to the concerned
employee.
• Any application before the authority for claim may be filed by–
a) the employee concerned; or
b) any Trade Union registered under the Trade Unions Act, 1926 (Now IR Code,
2020) of which the employee is a member; or
c) the Inspector-cum-Facilitator.
 Section 45. Claims under Code and procedure thereof.
• A single application may be filed on behalf or in respect of any number of
employees employed in an establishment.
• Application may be filed within a period of three years from the date on
which claims arise. The authority may, entertain the application after three
years on sufficient cause being shown by the applicant for such delay.
• The authority appointed under sub-section (1) and the appellate authority
appointed under sub-section (1) of section 49, shall have all the powers of a
civil court under the Code of Civil Procedure, 1908, for the purpose of taking
evidence and of enforcing the attendance of witnesses and compelling the
production of documents, and every such authority or appellate authority
shall be deemed to be a civil court for all the purposes of Section 195 and
Chapter XXVI of the Code of Criminal Procedure, 1973.
 Section 46. Reference of disputes under this Code.

• Notwithstanding anything contained in this Code, where any

dispute arises between an employer and his employees with
respect to—
a) fixation of bonus or eligibility for payment of bonus under
the provisions of this Code; or
b) the application of this Code, in respect of bonus, to an
establishment in public sector,
• then, such dispute shall be deemed to be an industrial dispute
within the meaning of the Industrial Disputes Act, 1947.
 Section 49. Appeal.
• Any person aggrieved by an order passed by the authority under sub-
section (2) of section 45 may prefer an appeal, to the appellate authority
having jurisdiction appointed by the appropriate Government, within
ninety days from the date of such order
• Provided that the appellate authority may entertain the appeal after ninety
days if it satisfied that the delay in filing the appeal has occurred due to
sufficient cause.
• The appellate authority shall be appointed from the officers of the
appropriate Government holding the post at least one rank higher than the
authority referred under section 45.
• The appellate authority shall, after hearing the parties in the appeal,
dispose of the appeal and endeavour shall be made to dispose of the appeal
within a period of three months.
 Chapter VII. Offences and Penalties.
Section 52. Cognizance of Offences.
• No court shall take cognizance of any offence punishable under this Code,
save on a complaint made—
a) by or under the authority of the appropriate Government or an officer
authorised in this behalf, or
b) by an employee or a registered Trade Union registered under the Trade
Unions Act, 1926 or
c) by an Inspector-cum-Facilitator.
• Notwithstanding anything contained in the Code of Criminal Procedure,
1973, no court inferior to that of a Metropolitan Magistrate or Judicial
Magistrate of the first class shall try the offences under this Code.
 Section 54. Penalties for offences.
• (1) Any employer who—
• (a) pays to any employee less than the amount due to such employee under the
provisions of this Code shall be punishable with fine which may extend to fifty thousand
rupees;
• (b) having been convicted of an offence under clause (a) is again found guilty of similar
offence under this clause, within five years from the date of the commission of the first
or subsequent offence, he shall, on the second and the subsequent commission of the
offence, be punishable with imprisonment for a term which may extend to three months
or with fine which may extend to one lakh rupees, or with both;
• (c) contravenes any other provision of this Code or any rule made or order made or
issued thereunder shall be punishable with fine which may extend to twenty thousand
rupees;
• (d) having been convicted of an offence under clause (c) is again found guilty of similar
offence under this clause, within five years from the date of the commission of the first
or subsequent offence, he shall, on the second and the subsequent commission of the
offence under this clause, be punishable with imprisonment for a term which may extend
to one month or with fine which may extend to forty thousand rupees, or with both.
 Section 54. Penalties for offences.
• (2) Notwithstanding anything contained in sub-section (1), for the offences of
non-maintenance or improper maintenance of records in the establishment, the
employer shall be punishable with fine which may extend to ten thousand rupees.

• (3) Notwithstanding anything contained in clause (c) of sub-section (1) or sub-

section (2), the Inspector-cum-Facilitator shall, before initiation of prosecution
proceeding for the offences under the said clause or sub-section, give an
opportunity to the employer to comply with the provisions of this Code by way
of a written direction, which shall lay down a time period for such compliance,
and, if the employer complies with the direction within such period, the
Inspector-cum-Facilitator shall not initiate such prosecution proceeding and, no
such opportunity shall be accorded to an employer, if the violation of the same
nature of the provisions under this Code is repeated within a period of five years
from the date on which such first violation was committed and in such case the
prosecution shall be initiated in accordance with the provisions of this Code.
Fin.