Section 19 of The Code on Wages, 2019
Fines.
- (1)No fine shall be imposed on any employee save in respect of those acts and 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 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 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.
- (6)No fine imposed on any employee shall be recovered from him by installments 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 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.
Summary
- Employers can only impose fines for specific acts or omissions that have been officially approved by the government and listed in a public notice.
- This notice listing potential fines must be clearly displayed on the work premises.
- A fine cannot be imposed until the employee has had a chance to explain themselves and "show cause" against it.
- The total fine in one wage period cannot be more than three per cent of the worker's wages for that period.
- It is illegal to fine any child who is under the age of fifteen years.
- Fines must be recorded in a register and the money must be spent only for the benefit of the employees.
Practical examples
FAQ
1. What is the maximum fine amount under Section 19 of The Code on Wages, 2019?
Under Section 19 of The Code on Wages, 2019, the total fine in one wage period cannot exceed three per cent of the wages payable.
2. Can a 14-year-old be fined under Section 19 of the Wage Code?
No, Section 19 of The Code on Wages, 2019, prohibits imposing any fine on an employee who is under the age of fifteen.
3. How long does an employer have to recover a fine under Section 19 of The Code on Wages, 2019?
According to Section 19 of The Code on Wages, 2019, a fine cannot be recovered after the expiry of ninety days from the day it was imposed.
Test yourself
1.Under Section 19 of The Code on Wages, 2019, what is the maximum percentage of a worker's wage that can be taken as a fine in one period?
2.According to Section 19 of The Code on Wages, 2019, what must happen before an employer actually imposes a fine?
3.Under Section 19 of The Code on Wages, 2019, how must the money collected from fines be used?
4.What is the time limit for recovering a fine from an employee under Section 19 of The Code on Wages, 2019?
5.Combining Section 18 and Section 19 of The Code on Wages, 2019, if a worker is fined 3% and also has a 50% deduction for a loan, what is the total allowed deduction?