Section 57: Protection of action taken in good faith

Overview

Section 57 of the Code on Wages, 2019, deals with the protection of individuals who are implementing the provisions of the Code in good faith. It’s a crucial provision ensuring that those responsible for applying wage-related rules aren’t unfairly penalized for honest mistakes or interpretations while trying to comply with the law. This section doesn’t directly relate to calculating wages, bonuses, or deductions, but rather safeguards those *applying* the rules around these areas.

Scope and Coverage

• Which employees and establishments are covered: This section applies to *all* employees and establishments covered under the Code on Wages, 2019 – meaning all workers, regardless of skill level or sector, and all employers, whether in the organized or unorganized sector.
• Any thresholds or exclusions: There are no thresholds or exclusions. The protection applies universally to anyone acting under the Code.

Key Obligations and Rights

• Main duties of employers: Employers have a duty to implement the Code on Wages correctly. This section doesn’t change that duty, but it *protects* those implementing it from legal challenges if they acted honestly.
• Important rights or protections for employees: While this section directly protects those *implementing* the Code, it indirectly protects employees by encouraging officials and employers to act without fear of undue legal repercussions when trying to ensure workers receive their due wages and benefits.

Compliance and Penalties

This section doesn’t create penalties for non-compliance. Instead, it *prevents* penalties from being levied if someone acted in good faith. If an employer or official genuinely believed they were following the Code correctly, even if a later interpretation proves them wrong, they are protected from lawsuits, prosecutions, or other legal proceedings. However, this protection doesn’t apply to willful misconduct or deliberate violations.

Practical Examples

• Example 1 from a typical workplace: An HR manager, following initial government guidance, calculates overtime pay based on a certain formula. Later, the government clarifies the formula. If the HR manager acted in good faith based on the initial guidance, they are protected from legal action by employees even if the initial calculation was incorrect.
• Example 2 for a borderline scenario: A factory owner, unsure about the exact minimum wage applicable to a specific category of worker, consults with a labor lawyer and implements the wage based on the lawyer’s advice. Even if a later court ruling clarifies the minimum wage differently, the factory owner is likely protected because they acted in good faith by seeking professional legal counsel.