Section 53: Power of officers of appropriate Government to impose penalty in certain cases

Overview

Section 53 of the Code on Wages, 2019, deals with the enforcement of the Code. It specifically outlines the authority given to officers of the appropriate Government (Central or State) to directly impose penalties on employers who violate certain provisions of the Code related to wage payment, minimum wages, and other related aspects. This section streamlines the penalty imposition process, making it faster and more efficient.

Scope and Coverage

• Employees Covered: This section applies to all employees covered under the Code on Wages, 2019, including those employed in any factory, mine, workshop, or establishment. This covers both organized and unorganized sector workers.
• Establishments Covered: All establishments employing workers are covered, regardless of the number of employees.
• Thresholds/Exclusions: There are no specific thresholds or exclusions regarding the applicability of this section. However, the penalties imposed will depend on the nature and severity of the violation.

Key Obligations and Rights

• Main Duties of Employers: Employers have a duty to comply with all provisions of the Code on Wages, including timely and accurate wage payment, adherence to minimum wage rates, and proper maintenance of wage records.
• Important Rights/Protections for Employees: Employees have the right to receive wages as per the Code, to be paid minimum wages, and to have their wage-related grievances addressed effectively. This section empowers government officers to ensure these rights are protected.

Compliance and Penalties

If an employer violates the Code on Wages, 2019, an authorized officer of the appropriate Government can investigate the matter. If a violation is found, the officer can directly impose a penalty, as prescribed in the Code. This is different from requiring a court order in some cases. The penalty amount will vary depending on the specific violation. Inspections can be conducted by labour inspectors to verify compliance. Repeated or serious violations can lead to higher penalties and even prosecution.

Practical Examples

• Example 1: A factory owner consistently delays wage payments to workers by more than the permissible time limit. A labour inspector, upon investigation, finds this to be true. The inspector can directly impose a penalty on the factory owner as per Section 53, without needing to go to court first.
• Example 2: A small shop owner pays an employee less than the prescribed minimum wage for their category of work. During a surprise inspection, this is discovered. The inspecting officer can impose a penalty on the shop owner, along with a direction to pay the employee the outstanding wages.