The Code on Wages, 2019
Section 19. Fines
In simple words
- An employee may be fined only for acts and omissions listed in a notice that has been approved in advance and displayed on the premises s. 19(1)–(2).
- The employee must be given a chance to show cause before a fine is imposed s. 19(3).
- Fines in a wage period may not exceed three per cent of the wages for that period s. 19(4).
- No employee under the age of fifteen years may be fined, and a fine may not be recovered in instalments or later than ninety days after it was imposed s. 19(5)–(6).
An explanation, not the law. The official text below prevails.
Official text
(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.
(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.