Payment of Wages CHAPTER IV: Draft Code on Wages (Central) Rules 2020 : Notification


Payment of Wages CHAPTER IV: Draft Code on Wages (Central) Rules 2020 : Notification

Payment of Wages CHAPTER IV: Draft Code on Wages (Central) Rules 2020 : Notification

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13. Recovery under sub-section (4) of section 18.-where the total deductions authorized under sub-section (2) of section 18 exceed fifty per cent. Of the wages of an employee, the excess shall be carried forward and recovered from the wages of succeeding wage period or wage periods, as the case may be, in such installments so that the recovery in any month shall not exceed the fifty percent of the wages of the employee in that month.

14. .the authority under sub-section (1) of section 19.- the deputy chief labour commissioner (central) having jurisdiction over the place of work of the employee concerned shall be the authority for the purposes of sub- section (1) of section 19.

15. The manner of exhibiting the notice under sub-section (2) of section 19.- a notice referred to in sub-section (2) of section 19 shall be displayed at the conspicuous places in the premises of the work place in which the employment is carried on, so that every concerned employee would be able easily to read the contents of the notice and a copy of the notice shall be sent to the inspector-cum-facilitator having jurisdiction.

16. The procedure under sub-section (3) of section 19.-the employer shall give an intimation in writing specifying therein the detailed particulars for obtaining the approval of the imposition of fine to the deputy chief labour commissioner (central) referred to in rule 14 who shall, before granting or refusing the approval, give opportunity of being heard to the employee and the employer concerned.

17. Intimation of deduction.-

(1) Where an employer makes any deduction in pursuance of the proviso to sub- section (2) of section 20, he shall make intimation of such deduction to the Inspector-cum-Facilitator having jurisdiction within 10 days from the date of such deduction explaining therein the reason of such deduction.

(2) The Inspector-cum-Facilitator shall, after receiving intimation under sub-rule (1), examine such intimation and if he finds that the explanation given therein is in contravention of any provision of the Code or the rules made there under, he shall initiate appropriate action under the Code against the employer.

18. Procedure for deduction under sub-section (2) of section 21.-Any employer desiring to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee shall,-

(i) explain to the employee personally and also in writing the damage or loss of goods expressly entrusted to the employee for custody or for loss of money for which he is required to account and how such damages or loss is directly attributable to the neglect or default of the employee; and

(ii) thereafter,give the employee an opportunity to offer any explanation and deduction for any damages or loss, if made, shall be intimated to the employee within fifteen days from the date of such deduction.

Instructions regarding timely release/ payment of Gratuity (DCRG) for avoiding payment of interest on delayed payment of Gratuity

19. Conditions regarding recovery of advance under section 23.-The recovery, as the case may be of,-

(i) advances of money given to an employee after the employment begins under clause (b) of section 23; or

(ii) advances of wages to an employee not already earned under clause (c) of section 23,

shall be made by the employer from the wages of the concerned employee in installments determined by the employer, so as any or all installments in a wage period shall not exceed fifty per cent. of the wages of the employee in that wage period and the particulars of such recovery shall be recorded in the register maintained in Form-I.

Form – I

[See rule-19 and rule-51(1), (2) and (3)]
Register of Wages, Overtime, Fine, Deduction for damage and Loss
Name of the Establishment: Name of the Employer:
Name of the Owner: PAN/TAN of the Employer:
Labour Identification Number (LIN):
Sr. No. in Employee Register Name of the employee Designation

/ Department

Duration of Payment of Wages (Monthly/Fortnightly

/Weekly/Daily/Piece rated)

Wage Period From- To Total no. of days worked during the period Total overtime (hoursworked or production in case of piece workers) Rates of wages
Basic DA Allowances
1 2 3 4 5 6 7 8 9 10
Overtime earning Nature of acts and omissions for which fine imposed with date Amount of fine imposed Damage or loss caused to the employer by neglect or default of the employee Amount of deduction from wages Total amount of wages paid Date of Payment Attendance
Date Signature
11 12 13 14 15 16 17 18 19

20. Deduction under section 24.– Deductions for recovery of loans granted for house building or other purposes approved by the Central Government, and the interest due in respect thereof shall be, subject to any direction made or circular issued by the Central Government from time to time regulating the extent to which such loans may be granted and the rate of interest shall be payable thereon.

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