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The Code on Wages - Offences and Penalties

Chapter 8 - OFFENCES AND PENALTIES


52. Cognizance of offences.

(1) Court shall not take cognizance of the offence without any complaint made by an employee, trade union or officers

(2) Officer below the rank of 1st class metro magistrate shall not try the case


53. Power of officers of the appropriate Government to impose a penalty in certain cases.

(1) For purpose of imposing penalties, govt may appoint an officer for holding an enquiry. And

such officer shall not be below the rank of undersecretary of Govt of India.

(2) Such officer shall have the power to summon, enforce attendance, call for documents and if satisfied of offence, impose a penalty


54. Penalties for offences

(1) Any employer who

(a) Pays lesser wages: Fine Rs 50,000

(b) Repeats such offence within a period of 5 years: Jail for 3 months or Fine of Rs 1 Lakh or both

(c) Contravenes any other provision: Fine Rs 20,000

(d) Repeats such offence within a period of 5 years: Jail for 1 month or Fine of Rs 40,000 or both


(2) Non-maintenance of proper records: Fine of Rs 10,000

(3) Before imposing penalty or prosecution, the officer shall give the opportunity to comply with written directions and after compliance, such proceeding shall be dropped. But if a similar offence is repeated in 5 years, the prosecution shall be started without directions.


55. Offences by companies/LLP/Firm/AOP

(1) If the person committing the offence is company etc, an officer in charge and the company shall be responsible. Except for the officers who prove that due diligence was taken by them and offence was committed without their knowledge.

(2) If the offence was committed and it is proved that it occurred due to negligence or connivance of the officers/ manager/ directors/ partners then such officers shall be guilty.


56. Composition of offence (Settlement)

(1) Overriding CRPC, any offence for which jail is not prescribed, may be compounded by Gazetted officer on the application of accused. by paying 50% of the maximum penalty

(2) Similar offence can not be compounded if repeated within 5 years

(3) Power of officers to compound will be under supervision, control and direction of govt

(4) Application for compounding will be in the format given by rules

(5) After compounding, the proceedings pending shall be dropped

(6) If the application is made after initiation of proceedings, then the officer shall communicate to the authority that the application has been compunded.

(7) Any person who fails to comply the order of officer shall be fined 120% of the maximum penalty.

(8) Offence shall be compounded only after following these provisions.


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