The Code on Wages, 2019 (PDF)

AS INTRODUCED IN LOK SABHA Bill No. 184 of 2019 THE CODE ON WAGES, 2019 —————— ARRANGEMENT OF CLAUSES ——————...

AS INTRODUCED IN LOK SABHA Bill No. 184 of 2019 THE CODE ON WAGES, 2019 —————— ARRANGEMENT OF CLAUSES —————— CHAPTER I PRELIMINARY CLAUSES 1. Short title, extent and commencement. 2. Definitions. 3. Prohibition of discrimination on ground of gender. 4. Decision as to disputes with regard to same or similar nature of work. CHAPTER II MINIMUM WAGES 5. Payment of minimum rate of wages. 6. Fixation of minimum wages. 7. Components of minimum wages. 8. Procedure for fixing and revising minimum wages. 9. Power of Central Government to fix floor wage. 10. Wages of employee who works for less than normal working day. 11. Wages for two or more classes of work. 12. Minimum time rate wages for piece work. 13. Fixing hours of work for normal working day. 14. Wages for overtime work. CHAPTER III PAYMENT OF WAGES 15. Mode of payment of wages. 16. Fixation of wage period. 17. Time limit for payment of wages. 18. Deductions which may be made from wages. 19. Fines. 20. Deductions for absence from duty. 21. Deductions for damage or loss. 22. Deductions for services rendered. 23. Deductions for recovery of advances. 24. Deductions for recovery of loans. 25. Chapter not to apply to Government establishments.  (ii) CHAPTER IV PAYMENT OF BONUS CLAUSES 26. Eligibility for bonus, etc. 27. Proportionate reduction in bonus in certain cases. 28. Computation of number of working days. 29. Disqualification for bonus. 30. Establishments to include departments, undertakings and branches. 31. Payment of bonus out of allocable surplus. 32. Computation of gross profits. 33. Computation of available surplus. 34. Sums deductible from gross profits. 35. Calculation of direct tax payable by the employer. 36. Set on and set off of allocable surplus. 37. Adjustment of customary or interim bonus against bonus payable under this Code. 38. Deduction of certain amounts from bonus payable. 39. Time limit for payment of bonus. 40. Application of this Chapter to establishments in public sector in certain cases. 41. Non-applicability of this Chapter. CHAPTER V ADVISORY BOARD 42. Central Advisory Board and State Advisory Boards. CHAPTER VI PAYMENT OF DUES , CLAIMS AND AUDIT 43. Responsibility for payment of various dues. 44. Payment of various undisbursed dues in case of death of employee. 45. Claims under Code and procedure thereof. 46. Reference of disputes under this Code. 47. Presumption about accuracy of balance sheet and profit and loss account of corporations and companies. 48. Audit of accounts of employers, not being corporations or companies. 49. Appeal. 50. Records, returns and notices. CHAPTER VII INSPECTOR-CUM-FACILITATOR 51. Appointment of Inspector-cum-Facilitators and their powers.  (iii) CHAPTER VIII OFFENCES AND PENALTIES CLAUSES 52. Cognizance of offences. 53. Power of officers of appropriate Government to impose penalty in certain cases. 54. Penalties for offences. 55. Offences by companies. 56. Composition of offences. CHAPTER IX MISCELLANEOUS 57. Bar of suits. 58. Protection of action taken in good faith. 59. Burden of proof. 60. Contracting out. 61. Effect of laws, agreements, etc., inconsistent with this Code. 62. Delegation of powers. 63. Exemption of employer from liability in certain cases. 64. Protection against attachment of assets of employer with Government. 65. Power of Central Government to give directions. 66. Saving. 67. Power of appropriate Government to make rules. 68. Power to remove difficulties. 69. Repeal and savings.  1 AS INTRODUCED IN LOK SABHA Bill No. 184 of 2019 THE CODE ON WAGES, 2019 A BILL to amend and consolidate the laws relating to wages and bonus and matters connected therewith or incidental thereto. BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY 1. (1) This Act may be called the Code on Wages, 2019. Short title extent and 5 (2) It extends to the whole of India. commencement. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette appoint; and different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the coming into force of that provision.  2 Definitions. 2. In this Code, unless the context otherwise requires,–– (a) "accounting year" means the year commencing on the 1st day of April ; (b) "Advisory Board" means the Central Advisory Board or, as the case may be, the State Advisory Board, constituted under section 42; (c) "agricultural income tax law" means any law for the time being in force relating 5 to the levy of tax on agricultural income; (d) "appropriate Government" means,–– (i) in relation to, an establishment carried on by or under the authority of the Central Government or the establishment of railways, mines, oil field, major ports, air transport service, telecommunication, banking and insurance company 10 or a corporation or other authority established by a Central Act or a central public sector undertaking or subsidiary companies set up by central public sector undertakings or autonomous bodies owned or controlled by the Central Government, including establishment of contractors for the purposes of such establishment, corporation or other authority, central public sector undertakings, 15 subsidiary companies or autonomous bodies, as the case may be, the Central Government; (ii) in relation to any other establishment, the State Government; (e) "company" means a company as defined in clause (20) of section 2 of the Companies Act, 2013; 2 0 18 of 2013. (f) "contractor", in relation to an establishment, means a person, who — (i) undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour; or (ii) supplies contract labour for any work of the establishment as mere 25 human resource and includes a sub-contractor; (g) "contract labour" means a worker who shall be deemed to be employed in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer and includes inter-State migrant worker but does not include a 30 worker (other than part-time employee) who –– (i) is regularly employed by the contractor for any activity of his establishment and his employment is governed by mutually accepted standards of the conditions of employment (including engagement on permanent basis), and 35 (ii) gets periodical increment in the pay, social security coverage and other welfare benefits in accordance with the law for the time being in force in such employment; (h) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912, or any other law for the time being in force 4 0 2 of 1912. relating to co-operative societies in any State; (i) "corporation" means any body corporate established by or under any Central Act, or State Act, but does not include a company or a co-operative society; (j) "direct tax" means–– (i) any tax chargeable under the–– 45 (A) Income-tax Act, 1961; 43 of 1961.  3 7 of 1964. (B) Companies (Profits) Surtax Act, 1964; (C) Agricultural income tax law; and (ii) any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification, to be a direct tax for the 5 purposes of this Code; (k) "employee" means, any person (other than an apprentice engaged under the 52 of 1961. Apprentices Act, 1961), employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be 10 express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union; (l) "employer" means a person who employs, whether directly or through any person, or on his behalf or on behalf of any person, one or more employees in his 15 establishment and where the establishment is carried on by any department of the Central Government or the State Government, the authority specified, by the head of such department, in this behalf or where no authority, is so specified the head of the department and in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,— 20 (i) in relation to an establishment which is a factory, the occupier of the 63 of 1948. factory as defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the said Act, the person so named; (ii) in relation to any other establishment, the person who, or the authority 25 which, has ultimate control over the affairs of the establishment and where the said affairs is entrusted to a manager or managing director, such manager or managing director; (iii) contractor; and (iv) legal representative of a deceased employer; 30 (m) "establishment" means any place where any industry, trade, business, manufacture or occupation is carried on and includes Government establishment; (n) "factory" means a factory as defined in clause (m) of section 2 of the Factories 63 of 1948. Act, 1948; (o) "Government establishment" means any office or department of the 35 Government or a local authority; 43 of 1961. (p) "Income-tax Act" means the Income -tax Act, 1961; (q) "industrial dispute" means,— (i) any dispute or difference between employers and employers, or between employers and workers or between workers and workers which is connected 40 with the employment or non-employment or the terms of employment or with the conditions of labour, of any person; and (ii) any dispute or difference between an individual worker and an employer connected with, or arising out of, discharge, dismissal, retrenchment or termination of such worker; 45 (r) "Inspector-cum-Facilitator" means a person appointed by the appropriate Government under sub-section (1) of section 51; (s) "minimum wage" means the wage fixed under section 6;  4 (t) "notification" means a notification published in the Gazette of India or in the Official Gazette of a State, as the case may be, and the expression "notify" with its grammatical variations and cognate expressions shall be construed accordingly; (u) "prescribed" means prescribed by rules made by the appropriate Government; (v) "same work or work of a similar nature" means work in respect of which the 5 skill, effort, experience and responsibility required are the same, when performed under similar working conditions by employees and the difference if any, between the skill, effort, experience and responsibility required for employees of any gender, are not of practical importance in relation to the terms and conditions of employment; (w) "State" includes a Union territory; 10 (x) "Tribunal" shall have the same meaning as assigned to it in clause (r) of section 2 of the Industrial Disputes Act, 1947; 14 of 1947. (y) "wages" means all remuneration whether by way of salary, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, 42 of 2005. if the terms of employment, express or implied, were fulfilled, be payable to a person 15 employed in respect of his employment or of work done in such employment, and includes,— (i) basic pay; (ii) dearness allowance; and (iii) retaining allowance, if any, 20 but does not include–– (a) any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment; (b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the 25 computation of wages by a general or special order of the appropriate Government; (c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (d) any conveyance allowance or the value of any travelling concession; 30 (e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; (f) house rent allowance; (g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal; 35 (h) any overtime allowance (i) any commission payable to the employee; (j) any gratuity payable on the termination of employment; (k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of 40 employment: Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such 45  5 one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause: Provided further that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), 5 (g) and (h) shall be taken for computation of wage. Explanation.––Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee; 10 (z) "worker" means any person (except an apprentice as defined under clause 52 of 1961. (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes — (i) working journalists as defined in clause (f ) of section 2 of the Working 15 Journalists and other Newspaper Employees (Conditions of Service) and 45 of 1955. Miscellaneous Provisions Act, 1955; and (ii) sales promotion employees as defined in clause (d) of section 2 of the 11 of 1976. Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under this Code in relation to an industrial dispute, 20 includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute; but does not include any such person–– 45 of 1950. (a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the 46 of 1950. 2 5 Navy Act, 1957; or 62 of 1957. (b) who is employed in the police service or as an officer or other employee of a prison; or (c) who is employed mainly in a managerial or administrative capacity; or (d) who is employed in a supervisory capacity drawing wage of exceeding 30 fifteen thousand rupees per month or an amount as may be notified by the Central Government from time to time. 3. (1) There shall be no discrimination in an establishment or any unit thereof among Prohibition of employees on the ground of gender in matters relating to wages by the same employer, in discrimination on ground of respect of the same work or work of a similar nature done by any employee. gender. 35 (2) No employer shall,— (i) for the purposes of complying with the provisions of sub-section (1), reduce the rate of wages of any employee; and (ii) make any discrimination on the ground of sex while recruiting any employee for the same work or work of similar nature and in the conditions of employment, except 40 where the employment of women in such work is prohibited or restricted by or under any law for the time being in force. 4. Where there is any dispute as to whether a work is of same or similar nature for the Decision as to disputes with purposes of section 3, the dispute shall be decided by such authority as may be notified by regard to same the appropriate Government. or similar nature of work.  6 CHAPTER II MINIMUM WAGES Payment of 5. No employer shall pay to any employee wages less than the minimum rate of wages minimum rate notified by the appropriate Government. of wages. Fixation of 6. (1) Subject to the provisions of section 9, the appropriate Government shall fix the 5 minimum minimum rate of wages payable to employees in accordance with the provisions of section 8. wages. (2) For the purposes of sub-section (1), the appropriate Government shall fix a minimum rate of wages –– (a) for time work; or (b) for piece work. 10 (3) Where employees are employed on piece work, for the purpose of sub-section (1), the appropriate Government shall fix a minimum rate of wages for securing such employees a minimum rate of wages on a time work basis. (4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely:–– 15 (i) by the hour; or (ii) by the day; or (iii) by the month. (5) Where the rates of wages are fixed by the hour or by the day or by the month, the manner of calculating the wages shall be such, as may be prescribed. 20 (6) For the purpose of fixation of minimum rate of wages under this section, the appropriate Government, — (a) shall primarily take into account the skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly-skilled or geographical area or both; and 25 (b) may, in addition to such minimum rate of wages for certain category of workers, take into account their arduousness of work like temperature or humidity normally difficult to bear, hazardous occupations or processes or underground work as may be prescribed by that Government; and (c) the norms of such fixation of minimum rate of wages shall be such as may be 30 prescribed. (7) The number of minimum rates of wages referred to in sub-section (6) may, as far as possible, be kept at minimum by the appropriate Government. Components 7. (1) Any minimum rate of wages fixed or revised by the appropriate Government of minimum under section 8 may consist of–– 35 wages. (a) a basic rate of wages and an allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as "cost of living allowance"); or (b) a basic rate of wages with or without the cost of living allowance, and the 40 cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorised; or (c) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.  7 (2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rate shall be computed by such authority, as the appropriate Government may by notification, appoint, at such intervals and in accordance with such directions as may be specified or given by the appropriate Government 5 from time to time. 8. (1) In fixing minimum rates of wages for the first time or in revising minimum rates of Procedure for wages under this Code, the appropriate Government shall either— fixing and revising (a) appoint as many committees as it considers necessary to hold enquiries and minimum wages. recommend in respect of such fixation or revision, as the case may be; or 10 (b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration. (2) Every committee appointed by the appropriate Government under clause (a) of sub-section (1) shall consist of persons–– 15 (a) representing employers; (b) representing employees which shall be equal in number of the members specified in clause (a); and (c) independent persons, not exceeding one-third of the total members of the committee. 20 (3) After considering the recommendation of the committee appointed under clause (a) of sub-section (1) or, as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall by notification fix, or as the case may be, revise the minimum rates of wages and unless such notification otherwise provides, it shall come into force on the expiry of three months 25 from the date of its issue: Provided that where the appropriate Government proposes to revise the minimum rates of wages in the manner specified in clause (b) of sub-section (1), it shall also consult concerned Advisory Board constituted under section 42. (4) The appropriate Government shall review or revise minimum rates of wages ordinarily 30 at an interval not exceeding five years. 9. (1) The Central Government shall fix floor wage taking into account minimum living Power of standards of a worker in such manner as may be prescribed: Central Government Provided that different floor wage may be fixed for different geographical areas. to fix floor wage. (2) The minimum rates of wages fixed by the appropriate Government under section 6 35 shall not be less than the floor wage and if the minimum rates of wages fixed by the appropriate Government earlier is more than the floor wage, then, the appropriate Government shall not reduce such minimum rates of wages fixed by it earlier. (3) The Central Government may, before fixing the floor wage under sub-section (1), obtain the advice of the Central Advisory Board constituted under sub-section (1) of 40 section 42 and consult State Governments in such manner as may be prescribed. 10. If an employee whose minimum rate of wages has been fixed under this Code by the Wages of day works on any day on which he was employed for a period of less than the requisite employee who works for less number of hours constituting a normal working day, he shall, save as otherwise hereinafter than normal provided, be entitled to receive wages in respect of work done on that day, as if he had working day. 45 worked for a full normal working day: Provided that he shall not be entitled to receive wages for a full normal working day,— (i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work; and  8 (ii) in such other cases and circumstances, as may be prescribed. Wages for 11. Where an employee does two or more classes of work to each of which a different two or more minimum rate of wages is applicable, the employer shall pay to such employee in respect of classes of work. the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class. 5 Minimum 12. Where a person is employed on piece work for which minimum time rate and not a time rate minimum piece rate has been fixed under this Code, the employer shall pay to such person wages for piece work. wages at not less than the minimum time rate. Fixing hours 13. (1) Where the minimum rates of wages have been fixed under this Code, the of work for appropriate Government may — 10 normal working day. (a) fix the number of hours of work which shall constitute a normal working day inclusive of one or more specified intervals; (b) provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest; 15 (c) provide for payment for work on a day of rest at a rate not less than the overtime rate. (2) The provisions of sub-section (1) shall, in relation to the following classes of employees apply, only to such extent and subject to such conditions as may be prescribed, namely:— 20 (a) employees engaged in any emergency which could not have been foreseen or prevented; (b) employees engaged in work of the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned; 25 (c) employees whose employment is essentially intermittent; (d) employees engaged in any work which for technical reasons has to be completed before the duty is over; and (e) employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces. 30 (3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to be so by the appropriate Government on the ground that the daily hours of duty of the employee, or if there be no daily hours of duty as such for the employee, the hours of duty normally include periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or 35 sustained attention. Wages for 14. Where an employee whose minimum rate of wages has been fixed under this Code overtime by the hour, by the day or by such a longer wage-period as may be prescribed, works on any work. day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess, at the overtime rate which 40 shall not be less than twice the normal rate of wages. CHAPTER III PAYMENT OF WAGES Mode of 15. All wages shall be paid in current coin or currency notes or by cheque or by payment of crediting the wages in the bank account of the employee or by the electronic mode: 45 wages.  9 Provided that the appropriate Government may, by notification, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account. 5 16. The employer shall fix the wage period for employees either as daily or weekly or Fixation of fortnightly or monthly subject to the condition that no wage period in respect of any employee wage period. shall be more than a month: Provided that different wage periods may be fixed for different establishments. 17. (1) The employer shall pay or cause to be paid wages to the employees, engaged Time limit for 10 on — payment of wages. (i) daily basis, at the end of the shift; (ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday; (iii) fortnightly basis, before the end of the second day after the end of the 15 fortnight; (iv) monthly basis, before the expiry of the seventh day of the succeeding month. (2) Where an employee has been— (i) removed or dismissed from service; or 20 (ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the 25 appropriate Government may, provide any other time limit for payment of wages where it considers reasonable having regard to the circumstances under which the wages are to be paid. (4) Nothing contained in sub-section (1) or sub-section (2) shall affect any time limit for payment of wages provided in any other law for the time being in force. 30 18. (1) Notwithstanding anything contained in any other law for the time being in Deductions force, there shall be no deductions from the wages of the employee, except those as are which may be made from authorised under this Code. wages. Explanation.–– For the purposes of this sub-section,— (a) any payment made by an employee to the employer or his agent shall be 35 deemed to be a deduction from his wages; (b) any loss of wages to an employee, for a good and sufficient cause, resulting from— (i) the withholding of increment or promotion, including the stoppage of an increment; or 40 (ii) the reduction to a lower post or time-scale; or (iii) the suspension, shall not be deemed to be a deduction from wages in a case where the provisions made by the employer for such purposes are satisfying the requirements specified in the notification issued by the appropriate Government in this behalf.  10 (2) Deductions from the wages of an employee shall be made in accordance with the provisions of this Code, and may be made only for the following purposes, namely:— (a) fines imposed on him; (b) deductions for his absence from duty; (c) deductions for damage to or loss of goods expressly entrusted to the employee 5 for custody; or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default; (d) deductions for house-accommodation supplied by the employer or by appropriate Government or any housing board set up under any law for the time being in force, whether the Government or such board is the employer or not, or any other 10 authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by the appropriate Government by notification; (e) deductions for such amenities and services supplied by the employer as the appropriate Government or any officer specified by it in this behalf may, by general or special order, authorise and such deduction shall not exceed an amount equivalent to 15 the value of such amenities and services. Explanation.–– For the purposes of this clause, the expression "services" does not include the supply of tools and raw materials required for the purposes of employment; (f) deductions for recovery of— 20 (i) advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of overpayment of wages; (ii) loans made from any fund constituted for the welfare of labour, as may be prescribed by the appropriate Government, and the interest due in respect 25 thereof; (g) deductions for recovery of loans granted for house-building or other purposes approved by the appropriate Government and the interest due in respect thereof; (h) deductions of income-tax or any other statutory levy levied by the Central Government or State Government and payable by the employee or deductions required 30 to be made by order of a court or other authority competent to make such order; (i) deductions for subscription to, and for repayment of advances from any social security fund or scheme constituted by law including provident fund or pension fund or health insurance scheme or fund known by any other name; (j) deductions for payment of co-operative society subject to such conditions 35 as the appropriate Government may impose; (k) deductions made, with the written authorisation of the employee, for payment of the fees and contribution payable by him for the membership of any Trade Union registered under the Trade Unions Act, 1926; 16 of 1926. (l) deductions for recovery of losses sustained by the railway administration 40 on account of acceptance by the employee of counterfeit or base coins or mutilated or forged currency notes; (m) deductions for recovery of losses sustained by the railway administration on account of the failure of the employee to invoice, to bill, to collect or to account for the appropriate charges due to the railway administration whether in respect of fares, 45 freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of commodities in grain shops or otherwise;  11 (n) deductions for recovery of losses sustained by the railway administration on account of any rebates or refunds incorrectly granted by the employee where such loss is directly attributable to his neglect or default; (o) deductions, made with the written authorisation of the employee, for 5 contribution to the Prime Minister’s National Relief Fund or to such other fund as the Central Government may, by notification, specify. (3) Notwithstanding anything contained in this Code and subject to the provisions of any other law for the time being in force, the total amount of deductions which may be made under sub-section (2) in any wage period from the wages of an employee shall not exceed 10 fifty per cent. of such wages. (4) Where the total deductions authorised under sub-section (2) exceed fifty per cent. of the wages, the excess may be recovered in such manner, as may be prescribed. (5) Where any deduction is made by the employer from the wages of an employee under this section but not deposited in the account of the trust or Government fund or any 15 other account, as required under the provisions of the law for the time being in force, such employee shall not be held responsible for such default of the employer. 19. (1) No fine shall be imposed on any employee save in respect of those acts and Fines. 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 20 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 25 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. 30 (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 35 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. 20. (1) Deductions may be made under clause (b) of sub-section (2) of section 18 only Deductions for on account of the absence of an employee from the place or places where by the terms of his absence from duty. 40 employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work. (2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to the total period within such 45 wage-period during which by the terms of his employment he was required to work: Provided that, subject to any rules made in this behalf by the appropriate Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts  12 of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice. Explanation.–– For the purposes of this section, an employee shall be deemed to be absent from the place where he is required to work if, although present in such place, he 5 refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work. Deductions for 21. (1) A deduction under clause (c) or clause (n) of sub-section (2) of section 18 for damage or damage or loss shall not exceed the amount of the damage or loss caused to the employer by loss. negligence or default of the employee. 10 (2) A deduction shall not be made under sub-section (1) until the employee has been given an opportunity of showing cause against the deduction or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions. (3) All such deductions and all realisations thereof shall be recorded in a register to be kept in such form as may be prescribed. 15 Deductions 22. A deduction under clause (d) or clause (e) of sub-section (2) of section 18 shall not for services be made from the wages of an employee, unless the house-accommodation amenity or rendered. service has been accepted by him as a term of employment or otherwise and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and shall be subject to such conditions as the appropriate Government may 20 impose. Deductions for 23. Deductions under clause (f) of sub-section (2) of section 18 for recovery of recovery of advances given to an employee shall be subject to the following conditions, namely:–– advances. (a) recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete 25 wage-period but no recovery shall be made of such advances given for travelling expenses; (b) recovery of advance of money given to an employee after the employment began shall be subject to such conditions as may be prescribed; (c) recovery of advances of wages to an employee not already earned shall be 30 subject to such conditions as may be prescribed. Deductions for 24. Deductions under clause (g) of sub-section (2) of section 18 for recovery of loans recovery of granted to an employee, regulating the extent to which such loans may be granted and the loans. rate of interest payable thereon, shall be such as may be prescribed. Chapter not to 25. The provisions of this Chapter shall not apply to the Government establishments 35 apply to unless the appropriate Government, by notification, applies such provisions to the Government establishments. Government establishments specified in the said notification. CHAPTER IV PAYMENT OF BONUS Eligibility for 26. (1) There shall be paid to every employee, drawing wages not exceeding such bonus, etc. amount per mensem, as determined by notification, by the appropriate Government, by his 40 employer, who has put in at least thirty days work in an accounting year, an annual minimum bonus calculated at the rate of eight and one-third per cent. of the wages earned by the employee or one hundred rupees, whichever is higher whether or not the employer has any allocable surplus during the previous accounting year. (2) For the purpose of calculation of the bonus where the wages of the employee 45 exceeds such amount per mensem, as determined by notification by the appropriate Government, the bonus payable to such employee under sub-sections (1) and (3) shall be  13 calculated as if his wage were such amount, so determined by the appropriate Government or the minimum wage fixed by the appropriate Government, whichever is higher. (3) Where in respect of any accounting year referred to in sub-section (1), the allocable surplus exceeds the amount of minimum bonus payable to the employees under that sub- 5 section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year, bonus which shall be an amount in proportion to the wages earned by the employee during the accounting year, subject to a maximum of twenty per cent. of such wages. (4) In computing the allocable surplus under this section, the amount set on or the 10 amount set off under the provisions of section 36 shall be taken into account in accordance with the provisions of that section. (5) Any demand for bonus in excess of the bonus referred to in sub-section (1), either on the basis of production or productivity in an accounting year for which the bonus is payable shall be determined by an agreement or settlement between the employer and the 15 employees, subject to the condition that the total bonus including the annual minimum bonus referred to in sub-section (1) shall not exceed twenty per cent. of the wages earned by the employee in the accounting year. (6) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case 20 may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Code in relation to that year, but without applying the provisions of section 36. (7) For the sixth and seventh accounting years following the accounting year in 25 which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 36 shall apply subject to the following modifications, namely:— (i) for the sixth accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into 30 account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years; (ii) for the seventh accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus 35 set on or set off in respect of the fifth, sixth and seventh accounting years. (8) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 36 shall apply in relation to such establishment as they apply in relation to any other establishment. 40 Explanation 1.–– For the purpose of sub-section (6), an employer shall not be deemed to have derived profit in any accounting year, unless –– (a) he has made provision for depreciation of that year to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income tax law; and 45 (b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits. Explanation 2.–– For the purposes of sub-sections (6), (7) and (8), sale of the goods produced or manufactured during the course of the trial running of any factory or of the  14 prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the appropriate Government may, after giving the parties a reasonable opportunity of representing the case, decide upon the issue. (9) The provisions of sub-sections (6), (7) and (8) shall, so far as may be, apply to new 5 departments or undertakings or branches set up by existing establishments. Proportionate 27. Where an employee has not worked for all the working days in an accounting reduction in year, the minimum bonus under sub-section (1) of section 26, if such bonus is higher than bonus in certain cases. eight and one third per cent. of the salary or wage of the days such employee has worked in that accounting year, shall be proportionately reduced. 10 Computation 28. For the purposes of section 27, an employee shall be deemed to have worked in an of number of establishment in any accounting year also on the days on which,–– working days. (a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946, or under the Industrial 20 of 1946. Disputes Act, 1947, or under any other law applicable to the establishment; 1 5 14 of 1947. (b) he has been on leave with salary or wages; (c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and (d) the employee has been on maternity leave with salary or wages, during the accounting year. 20 Disqualification 29. Notwithstanding anything contained in this Code, an employee shall be disqualified for bonus. from receiving bonus under this Code, if he is dismissed from service for –– (a) fraud; or (b) riotous or violent behaviour while on the premises of the establishment; or (c) theft, misappropriation or sabotage of any property of the establishment; or 25 (d) conviction for sexual harassment. Establishments 30. Where an establishment consists of different departments or undertakings or has to include branches, whether situated in the same place or in different places, all such departments or departments, undertakings undertakings or branches shall be treated as parts of the same establishment for the purpose and branches. of computation of bonus under this Code: 30 Provided that where for any accounting year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus, under this Code for that year, unless such department or undertaking or branch was, immediately before the commencement 35 of that accounting year treated as part of the establishment for the purpose of computation of bonus. Payment of 31. (1) The bonus shall be paid out of the allocable surplus which shall be an amount bonus out of equal to sixty per cent. in case of a banking company and sixty-seven per cent. in case of allocable other establishment, of the available surplus and the available surplus shall be the amount 40 surplus. calculated in accordance with section 33. (2) Audited accounts of companies shall not normally be questioned. (3) Where there is any dispute regarding the quantum of bonus, the authority notified by the appropriate Government having jurisdiction may call upon the employer to produce the balance sheet before it, but the authority shall not disclose any information contained 45 in the balance sheet unless agreed to by the employer.  15 32. The gross profits derived by an employer from an establishment in respect of the Computation accounting year shall,–– of gross profits. (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government; 5 (b) in any other case, be calculated in the manner as may be prescribed by the Central Government. 33. The available surplus in respect of any accounting year shall be the gross profits Computation for that year after deducting therefrom the sums referred to in section 34: of available surplus. Provided that the available surplus in respect of the accounting year commencing on 10 any day in a year after the commencement of this Code and in respect of every subsequent accounting year shall be the aggregate of— (a) the gross profits for that accounting year after deducting therefrom the sums referred to in section 34; and (b) an amount equal to the difference between–– 15 (i) the direct tax, calculated in accordance with the provisions of section 35, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and (ii) the direct tax, calculated in accordance with provisions of section 35, in respect of an amount equal to the gross profits of the employer for such 20 preceding accounting year after deducting there from the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Code for that year. 34. The following sums shall be deducted from the gross profits as prior charges, Sums deductible namely:— from gross profits. 25 (a) any amount by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act or in accordance with the provisions of the agricultural income-tax law, for the time being in force, as the case may be; (b) subject to the provisions of section 35, any direct tax which the employer is 30 liable to pay for the accounting year in respect of his income, profits and gains during that year; (c) such further sums in respect of the employer as may be prescribed by the Central Government. 35. For the purposes of this Code, any direct tax payable by the employer for any Calculation of 35 accounting year shall, subject to the following provisions, be calculated at the rates applicable direct tax payable by the to the income of the employer for that year, namely:— employer. (a) in calculating such tax no account shall be taken of,–– (i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for the time being in force relating to 40 direct taxes; (ii) any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any succeeding accounting year or years under sub-section (2) of section 32 of the Income-tax Act; (b) where the employer is a religious or a charitable institution to which the 45 provisions of section 41 do not apply and the whole or any part of its income is exempt from the tax under the Income-tax Act, then, with respect to the income so  16 exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act; (c) where the employer is an individual or a Hindu undivided family, the tax payable by such employer under the Income-tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income; 5 (d) where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate; (e) no account shall be taken of any rebate other than development rebate or 10 investment allowance or development allowance or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry. Set on and set 36. (1) Where for any accounting year, the allocable surplus exceeds the amount of 15 off of maximum bonus payable to the employees in the establishment under section 26, then, the allocable surplus. excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in such manner as may be prescribed 20 by the Central Government. (2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 26, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the 25 purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in such manner as may be prescribed by the Central Government. (3) The principle of set on and set off as may be provided in rules by the Central 30 Government under this Code shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Code. (4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be 35 taken into account. Adjustment of 37. Where in any accounting year,— customary or interim bonus (a) an employer has paid any puja bonus or other customary bonus to employee; against bonus or payable under this Code. (b) an employer has paid a part of the bonus payable under this Code to an 40 employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that accounting year and the employee shall be entitled to receive only the balance. Deduction of 38. Where in any accounting year, an employee is found guilty of misconduct causing 45 certain financial loss to the employer, then, it shall be lawful for the employer to deduct the amount amounts from bonus payable. of loss from the amount of bonus payable by him to the employee under this Code in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.  17 39. (1) All amounts payable to an employee by way of bonus under this Code shall be Time limit for paid by crediting it in the bank account of the employee by his employer within a period of payment of bonus. eight months from the close of the accounting year: Provided that the appropriate Government or such authority as the appropriate 5 Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years. (2) Notwithstanding anything contained in sub-section (1), where there is a dispute 10 regarding payment of bonus pending before any authority, such bonus shall be paid, within a period of one month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute: Provided that if, there is a dispute for payment at the higher rate, the employer shall pay eight and one-third per cent. of the wages earned by the employee as per the provisions 15 of this Code within a period of eight months from the close of the accounting year. 40. (1) If in any accounting year an establishment in public sector sells any goods Application produced or manufactured by it or renders any services, in competition with an establishment of this Chapter to in private sector, and the income from such sale or services or both, is not less than twenty establishments per cent. of the gross income of the establishment in public sector for that year, then, the in public 20 provisions of this Chapter shall apply in relation to such establishment in public sector as sector in they apply in relation to a like establishment in private sector. certain cases. (2) Save as otherwise provided in sub-section (1), nothing in this Chapter shall apply to the employees employed by any establishment in public sector. 41. (1) Nothing in this Chapter shall apply to–– Non- applicability 25 (a) employees employed by the Life Insurance Corporation of India; of this Chapter. (b) seamen as defined in clause (42) of section 3 of the Merchant Shipping 44 of 1958. Act, 1958; (c) employees registered or listed under any scheme made under the Dock 9 of 1948. Workers (Regulation of Employment) Act, 1948, and employed by registered or listed 30 employers; (d) employees employed by an establishment under the authority of any department of the Central Government or a State Government or a local authority; (e) employees employed by–– (i) the Indian Red Cross Society or any other institution of a like nature 35 including its branches; (ii) universities and other educational institutions; (iii) institutions including hospitals, chamber of commerce and social welfare institutions established not for purposes of profit; (f) employees employed by the Reserve Bank of India; 40 (g) employees employed by public sector financial institution other than a banking company, which the Central Government may, by notification, specify, having regard to— (i) its capital structure; (ii) its objectives and the nature of its activities; 45 (iii) the nature and extent of financial assistance or any concession given to it by the Government; and (iv) any other relevant factor;  18 (h) employees employed by inland water transport establishments operating on routes passing through any other country; and (i) employees of any other establishment which the appropriate Government may, by notification, exempt having regard to the overall benefits under any other scheme of profit sharing available in such establishments to the employees. 5 (2) Subject to the provisions of sub-section (1) and notwithstanding anything contained in any other provisions of this Chapter, the provisions of this Chapter shall apply to such establishment in which twenty or more persons are employed or were employed on any day during an accounting year. CHAPTER V 10 ADVISORY BOARD Central 42. (1) The Central Government shall constitute the Central Advisory Board which Advisory shall consist of persons to be nominated by the Central Government— Board and State Advisory (a) representing employers; Boards. (b) representing employees which shall be equal in number of the members 15 specified in clause (a); (c) independent persons, not exceeding one-third of the total members of the Board; and (d) five representatives of such State Governments as may be nominated by the Central Government. 20 (2) One-third of the members referred to in sub-section (1) shall be women and a member specified in clause (c) of the said sub-section shall be appointed by the Central Government as the Chairperson of the Board. (3) The Central Advisory Board constituted under sub-section (1) shall from time to time advise the Central Government on reference of issues relating to–– 25 (a) fixation or revision of minimum wages and other connected matters; (b) providing increasing employment opportunities for women; (c) the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf; and 30 (d) any other matter relating to this Code, and on such advice, the Central Government may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board. (4) Every State Government shall constitute a State Advisory Board for advising the State Government— 35 (a) in fixation or revision of minimum wages and other connected matters; (b) for the purpose of providing increasing employment opportunities for women; (c) with regard to the extent to which women may be employed in such establishments or employments as the State Government may, by notification, specify in this behalf; and 40 (d) in any other matter relating to this Code, which the State Government may refer from time to time to the Board.  19 (5) The State Advisory Board may constitute one or more committees or sub-committees to look into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4). (6) The State Advisory Board and each of the committees and sub- committees thereof shall consist of persons–– 5 (a) representing employers; (b) representing employees which shall be equal in number of the members specified in clause (a); and (c) independent persons, not exceeding one-third of the total members of the Board or committee or sub-committee, as the case may be. 10 (7) One-third of the members referred to in sub-section (6) shall be women and one among the members specified in clause (c) of the said sub-section shall be–– (a) appointed by the State Government as the Chairperson of the Board; (b) appointed by the State Advisory Board as the Chairperson of the committee or sub-committee, as the case may be. 15 (8) In tendering its advice in the matters specified in clause (b) or clause (c) of sub-section (4), the State Advisory Board shall have regard to the number of women employed in the concerned establishment, or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part time employment, and such 20 other relevant factors as the Board may think fit. (9) The State Government may, after considering the advice tendered to it by the State Advisory Board and after inviting and considering the representations from establishment or employees or any other person which that Government thinks fit, issue such direction as may be deemed necessary. 25 (10) The Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) shall respectively regulate their own procedure including that of the committees and sub-committees constituted by the State Advisory Board, in such manner as may be prescribed. (11) The terms of office of the Central Advisory Board referred to in sub-section (1) 30 and the State Advisory Board referred to in sub-section (4) including that of the committees and sub-committees constituted by the State Advisory Board, shall be such as may be prescribed. CHAPTER VI PAYMENT OF DUES, CLAIMS AND AUDIT 35 43. Every employer shall pay all amounts required to be paid under this Code to every Responsibility employee employed by him: for payment of various dues. Provided that where such employer fails to make such payment in accordance with this Code, then, the company or firm or association or any other person who is the proprietor of the establishment, in which the employee is employed, shall be responsible for such 40 payment. Explanation.––For the purposes of this section the expression "firm" shall have the 9 of 1932. same meaning as assigned to it in the Indian Partnership Act, 1932. 44. (1) Subject to the other provisions of this Code, all amounts payable to an employee Payment of under this Code shall, if such amounts could not or cannot be paid on account of his death various undisbursed 45 before payment or on account of his whereabouts not being known,— dues in case of (a) be paid to the person nominated by him in this behalf in accordance with the death of employee. rules made under this Code; or  20 (b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the such authority, as may be prescribed, who shall deal with the amounts so deposited in the manner as may be prescribed. (2) Where in accordance with the provisions of sub-section (1), all amounts payable 5 to an employee under this Code— (a) are paid by the employer to the person nominated by the employee; or (b) are deposited by the employer with the authority referred to in clause (b) of sub-section (1), then, the employer shall be discharged of his liability to pay those amounts. 10 Claims under 45. (1) The appropriate Government may, by notification, appoint one or more Code and authorities, not below the rank of a Gazetted Officer, to hear and determine the claims which procedure thereof. arises under the provisions of this Code. (2) The authority appointed under sub-section (1), while deciding the claim under that sub-section, may order, having regard to the circumstances under which the claim 15 arises, the payment of compensation in addition to the claim determined, which may extend to ten times of the claim determined and endeavour shall be made by the authority to decide the claim within a period of three months. (3) If an employer fails to pay the claim determined and compensation ordered to be paid under sub-section (2), the authority shall issue a certificate of recovery to the Collector 20 or District Magistrate of the district where the establishment is located who shall recover the same as arrears of land revenue and remit the same to the authority for payment to the concerned employee. (4) Any application before the authority for claim referred to in sub-section (1) may be filed by,–– 25 (a) the employee concerned; or (b) any Trade Union registered under the Trade Unions Act, 1926 of which the 16 of 1926. employee is a member; or (c) the Inspector-cum-Facilitator. (5) Subject to such rules as may be made, a single application may be filed under this 30 section on behalf or in respect of any number of employees employed in an establishment. (6) The application under sub-section (4) may be filed within a period of three years from the date on which claims referred to in sub-section (1) arises: Provided that the authority referred to in sub-section (1) may, entertain the application after three years on sufficient cause being shown by the applicant for such delay. 35 (7) The authority appointed under sub-section (1) and the appellate authority appointed under sub-section (1) of section 49, shall have all the powers of a civil court under the Code of Civil Procedure, 1908, for the purpose of taking evidence and of enforcing 5 of 1908. the attendance of witnesses and compelling the production of documents, and every such authority or appellate authority shall be deemed to be a civil court for all the purposes of 40 section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. 2 of 1974. Reference of 46. Notwithstanding anything contained in this Code, where any dispute arises disputes under between an employer and his employees with respect to— this code. (a) fixation of bonus or eligibility for payment of bonus under the provisions of this Code; or 45  21 (b) the application of this Code, in respect of bonus, to an establishment in public sector, then, such dispute shall be deemed to be an industrial dispute within the meaning 14 of 1947. of the Industrial Disputes Act, 1947. 5 47. (1) Where, during the course of proceedings before— Presumption about (a) the authority under section 45; or accuracy of balance sheet (b) the appellate authority under section 49; or and profit and (c) a Tribunal; or loss account of (d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes corporations 14 of 1947. 1 0 Act, 1947, and companies. in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the balance sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the Comptroller and Auditor General of India or by auditors duly qualified to act as auditors of 18 of 2013. 1 5 companies under section 141 of the Companies Act, 2013, are produced before it, then, the said authority, appellate authority, Tribunal or arbitrator, as the case may be, may presume the statements and particulars contained in such balance sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an affidavit or by any other 20 mode: Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and 25 particulars. (2) When an application is made to the authority, appellate authority, Tribunal or arbitrator, as the case may be, referred to in sub-section (1), by any Trade Union being a party to the dispute or as the case may be, an appeal, and where there is no Trade Union, by the employees being a party to the dispute, or as the case may be, an appeal, requiring 30 any clarification relating to any item in the balance sheet or the profit and loss account, then such authority, appellate authority, Tribunal or arbitrator, may, after satisfying itself that such clarification is necessary, by order, direct the corporation or, as the case may be, the company, to furnish to the Trade Union or the employees such clarification within such time as may be specified in the direction and the corporation or, as the case may be, the company, 35 shall comply with such direction. 48. (1) Where any claim, dispute or appeal with respect to bonus payable under this Audit of Code between an employer, not being a corporation or a company, and his employees is account of employers not pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, being as referred to in sub-section (1) of section 47 and the accounts of such employer audited by coporations 40 any auditor duly qualified to act as auditor of companies under the provisions of section or companies. 18 of 2013. 141 of the Companies Act, 2013, are produced before such authority, appellate authority, Tribunal or arbitrator, then the provisions of section 47 shall, so far as may be, apply to the accounts so audited. (2) When the authority, appellate authority, Tribunal or arbitrator, referred to in 45 sub-section (1), as the case may be, finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct the employer to get his accounts audited within such time as may be specified in the direction or within such further time as 50 it may allow by such auditor or auditors as it thinks fit and thereupon the employer shall comply with such direction.  22 (3) Where an employer fails to get the accounts audited under sub-section (2), the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, may, without prejudice to the provisions of section 54, get the accounts audited by such auditor or auditors as it thinks fit. (4) When the accounts are audited under sub-section (2) or sub-section (3), the 5 provisions of section 47 shall, so far as may be, apply to the accounts so audited. (5) The expenses of, and incidental to, any audit under sub-section (3) including the remuneration of the auditor or auditors shall be determined by the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, and paid by the employer and in default of such payment shall be recoverable by the authority 10 referred to in sub-section (3) of section 45 from the employer in the manner provided in that sub-section. Appeal. 49. (1) Any person aggrieved by an order passed by the authority under sub-section (2) of section 45 may prefer an appeal, to the appellate authority having jurisdiction appointed by the appropriate Government, by notification, for such purpose, within ninety days from 15 the date of such order, in such form and manner as may be prescribed: Provided that the appellate authority may entertain the appeal after ninety days if it satisfied that the delay in filing the appeal has occurred due to sufficient cause. (2) The appellate authority shall be appointed from the officers of the appropriate Government holding the post at least one rank higher than the authority referred under 20 sub-section (1) of section 45. (3) The appellate authority shall, after hearing the parties in the appeal, dispose of the appeal and endeavour shall be made to dispose of the appeal within a period of three months. (4) The outstanding dues under the orders of the appellate authority shall be recovered 25 by the authority referred to in section 45, by issuing the certificate of recovery in the manner specified in sub-section (3) of that section. Records, 50. (1) Every employer of an establishment to which this Code applies shall maintain returns and a register containing the details with regard to persons employed, muster roll, wages and notices. such other details in such manner as may be prescribed. 30 (2) Every employer shall display a notice on the notice board at a prominent place of the establishment containing the abstract of this Code, category-wise wage rates of employees, wage period, day or date and time of payment of wages, and the name and address of the Inspector-cum-F