Section 52: Cognizance of offences

Overview

Section 52 of the Code on Wages, 2019, deals with how the government will take action against employers who break the rules related to wages – including minimum wages, payment timings, bonuses, and deductions. It doesn’t define the offences themselves, but controls who can start legal proceedings against an employer.

Scope and Coverage

• This section applies to all establishments and all employees covered under the Code on Wages, 2019. This includes workers in organized and unorganized sectors.
• There are no specific thresholds or exclusions regarding the application of this section. It applies to all offences punishable under the entire Code.

Key Obligations and Rights

• Employer’s Duty: Employers must comply with all provisions of the Code on Wages. However, they won’t face court cases initiated directly by employees.
• Employee’s Right: While employees cannot directly file a complaint in court, their complaints are crucial. They must report violations to the appropriate Government authorities, who can then take action.
• Government’s Role: The appropriate Government (Central or State) or an officer authorized by them is the primary authority to initiate legal proceedings against employers.

Compliance and Penalties

If an employer violates the Code on Wages, an employee cannot directly go to court. Instead, the employee must report the violation to the relevant Government authorities (Labour Department, etc.). The Government will investigate. If they find a violation, they (or an officer they authorize) must give their permission (called ‘sanction’) before a court can take up the case. Without this sanction, the court cannot proceed. Penalties for violations under the Code can include fines and imprisonment, as specified in other sections of the Code.

Practical Examples

• Example 1: A factory worker is not paid the minimum wage. The worker reports this to the Labour Inspector. The Labour Inspector investigates and confirms the violation. The Labour Inspector then gives permission to the court to prosecute the factory owner.
• Example 2: An employee believes their bonus was incorrectly calculated. They report this to the Government. The Government investigates but finds the calculation was correct according to the Code. In this case, the Government will not give permission for a court case, and the employee’s complaint will not proceed in court.