The Code on Wages, 2019 (“Code”) consolidates and rationalises the legal framework governing wages, minimum wages, bonus and equal remuneration with the objective of ensuring timely and fair payment to employees. The provisions relating to offences, penalties, and miscellaneous matters form the backbone of enforcement under the Code, as they prescribe consequences for non compliance and lay down procedural safeguards. These provisions strike a balance between deterrence and facilitation by introducing graded penalties, opportunities for compliance, compounding of offences and protections for bona fide actions. Together, they aim to promote adherence to wage related obligations while reducing unnecessary litigation.

Who can initiate cognizance of an offence under the Code?

A court can take cognizance of an offence only on a complaint made by or under the authority of the appropriate Government, or by an authorized officer, or by an employee, or by a registered Trade Union or by an Inspector-cum-Facilitator.

Are there any restrictions on which courts can try offences under the Code?

Yes. No court inferior to a Metropolitan Magistrate or a Judicial Magistrate of the first class is competent to try offences under the Code.

Can penalties be imposed by officers of the Government instead of courts in certain cases?

Yes. For specified categories of offences, the appropriate Government may appoint an officer not below a prescribed rank to conduct an enquiry and impose penalties.

What powers does such an officer have while conducting an enquiry?

The officer may summon and enforce attendance of any person acquainted with the facts, require production of documents, and upon satisfaction that an offence has been committed, impose an appropriate penalty as permitted under the Code.

What penalty applies if an employer pays less than the amount due to an employee?

The employer may be punished with a fine extending up to fifty thousand rupees.

What is the punishment for repeated underpayment of wages?

If the employer commits a similar offence again within five years, the punishment may........

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