Section 17: Time limit for payment of wages

Overview

This section of the Code on Wages, 2019, deals specifically with when employers must pay wages to their employees. It sets clear deadlines to ensure workers receive their earnings promptly.

Scope and Coverage

• This section applies to all employees covered under the Code on Wages, 2019, regardless of their type of employment (skilled, unskilled, etc.).
• The time limit for payment depends on the number of employees working in the establishment.
• There are no specific exclusions; all establishments employing workers are covered.

Key Obligations and Rights

• Employer Duty: Employers are legally obligated to pay wages within the specified timeframes.
• Employer Duty: Employers must establish a clear 'wage period' (e.g., weekly, fortnightly, monthly) and adhere to the payment deadlines based on that period.
• Employee Right: Employees have the right to receive their wages on or before the deadlines set by this section.
• Employee Right: Employees can seek legal recourse if their employer fails to comply with these payment timelines.

Compliance and Penalties

If an employer violates Section 17 by delaying wage payments, they can face penalties. This may include fines, and repeated offenses could lead to more serious consequences. Labour inspectors have the authority to conduct inspections to ensure compliance with the Code on Wages, and employees can also file complaints with the relevant authorities.

Practical Examples

• Example 1: A factory with 500 employees has a monthly wage period. The employer must pay all wages before the 7th day of the following month. So, wages for January must be paid before February 7th.
• Example 2: A large IT company with 1,500 employees also has a monthly wage period. They must pay wages before the 10th day of the following month. Wages for January must be paid before February 10th.