Miscellaneous
Section 57. Bar of suits.
Section 57 says that civil courts cannot entertain (cannot take up or hear) any suit relating to:
recovery of minimum wages,
wrongful deductions from wages,
wage discrimination, or
payment of bonus,
if the amount claimed falls under any of the following situations:
(a)
The claim is already covered under Section 45 (i.e., it is a matter that should be handled through the claims process provided under this Code).
Meaning:
If the law already provides a special authority to handle the claim, the civil court cannot take it.
(b)
The claim has already been the subject of a direction issued under this Code.
Meaning:
If the competent authority has already passed an order on the matter, the court cannot reopen it.
(c)
The claim has already been decided (adjudged) in any proceeding under this Code.
Meaning:
Once the matter is decided under the Code, it cannot then be brought before a civil court.
(d)
The claim could have been recovered under this Code, even if it was not actually filed under the Code.
Meaning:
If the Code provides a mechanism to recover the amount, then the civil court still cannot hear the case—even if the worker did not use that mechanism.
If a matter can be handled, has been handled, or should be handled under this Code, civil courts cannot take up the case.
The purpose is to prevent duplication, delay, and conflicting decisions.
Section 58. Protection of action taken in good faith.
It states that:
No suit,
No prosecution, and
No other legal proceeding
can be initiated against the Government or its officers for anything that they have:
done in good faith, or
intended to do in good faith,
under this Code.
In simple terms:
If the Government or its officers act honestly and with good intentions while implementing this Code, they cannot be sued or prosecuted for those actions—even if something goes wrong.
Section 59. Burden of proof.
When an employee (or workers) files a claim stating that:
wages were not paid, or
bonus was not paid, or
wages or bonus were paid less than what is due, or
unauthorised deductions were made from wages,
then:
➡ The burden of proof lies on the employer.
This means:
It is the employer’s responsibility to prove that the wages/bonus were actually paid correctly,
Not the employee’s responsibility to prove they were unpaid.
In simple terms:
If a worker complains that payment was not made or was made incorrectly, the employer must show evidence (records, slips, registers, etc.) to prove that the payment was actually made.
The law protects employees by shifting the responsibility of proof to the employer.
Section 60. Contracting out.
If there is any contract or agreement in which an employee gives up (relinquishes):
the right to receive any amount due under this Code, or
the right to receive bonus due under this Code,
then such a contract or agreement is null and void.
This means:
It has no legal effect,
And it cannot be used to reduce or remove the employer’s responsibility to pay what is legally owed.
In simple terms:
An employee cannot be made to sign away their right to wages or bonus.
Even if such an agreement is signed, it is invalid in the eyes of the law. The employer must still pay the rightful amount.
Section 61. Effect of laws, agreements, etc., inconsistent with this Code.
This section states that the provisions of this Code will override anything that is inconsistent with it.
Meaning:
If any other law,
or any award,
or agreement,
or settlement,
or contract of service
contains something that conflicts with this Code, then:
➡ The provisions of this Code will prevail.
If there is any contradiction between this Code and any other document or law, this Code wins.
No agreement or contract can reduce, limit, or contradict the rights and obligations set by this Code.
Section 62. Delegation of powers.
This section allows the appropriate Government to delegate its powers under this Code to other authorities.
The Government may issue a notification specifying:
which powers are being delegated,
to whom they are being delegated, and
any conditions attached to that delegation.
The delegation differs depending on who the “appropriate Government” is.
(a)
If the Central Government is the appropriate Government, it may delegate its powers to:
any officer or authority subordinate to the Central Government, or
the State Government, or
any officer or authority subordinate to the State Government,
as specified in the notification.
In simple terms:
The Central Government can authorise its own officers, or even State authorities, to exercise certain powers under the Code.
(b)
If the State Government is the appropriate Government, it may delegate its powers to:
any officer or authority subordinate to the State Government,
as specified in the notification.
In simple terms:
State Governments can empower their subordinate officers to exercise the powers given under the Code.
In essence:
This section allows for flexibility and decentralisation, helping the Government ensure efficient administration of the Code.
Section 63. Exemption of employer from liability in certain cases.
When an employer is charged with an offence under this Code, he has a special defence available.
He may file a proper complaint to the court stating that someone else is the actual offender.
That person must then be brought before the court on the same day the employer’s case is heard.
After the court establishes that the offence did occur, the employer must prove two things:
(a)
He exercised due diligence to ensure compliance with the Code.
Meaning
He took reasonable, proper steps to enforce the law in his establishment.
(b)
The offence was actually committed by the other person without the employer’s knowledge, consent, or connivance.
Meaning
He neither knew about it, nor allowed it, nor silently supported it.
Outcome if both (a) and (b) are proved:
The other person will be convicted of the offence.
That person will receive the same punishment as the employer would have received.
The employer will be discharged from all liability for that offence.
In simple terms:
Responsibility shifts to the real offender, and the employer is cleared if he proves he acted responsibly and was unaware of the violation.
Proviso
To prove these points:
The employer may be examined on oath.
His evidence or that of any witness he brings will be subject to cross-examination by:
the person he accuses as the real offender, and
the prosecution.
Meaning:
The employer’s statements can be tested in court to ensure fairness and truthfulness.
Section 64. Protection against attachment of assets of employer with Government.
If an employer has:
deposited money with the appropriate Government to ensure proper performance of a Government contract, or
is owed money by the Government under that contract,
then:
➡ These amounts cannot be attached by any court order for any debts or liabilities of the employer except one specific type.
The only exception is:
debts or liabilities that the employer owes to his employees who worked on that very Government contract.
In simple terms:
Money kept with the Government or payable by the Government under a contract cannot be seized by courts for the employer’s general debts.
But it can be used to pay employees’ dues arising from work connected to that same contract.
This protects workers’ rights while preventing unrelated creditors from claiming the contract-related amounts.
Section 65. Power of Central Government to give directions.
This section gives the Central Government the authority to issue directions to the State Government for implementing (carrying into effect) the provisions of this Code within the State.
It also states that:
➡ The State Government must follow and comply with the directions issued by the Central Government.
In simple terms:
The Central Government can guide or instruct the State Government on how to implement this Code, and the State Government is legally required to follow those instructions.
Section 66. Saving.
his section states that the provisions of this Code do not override or interfere with the following laws:
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA)
The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948
Any schemes issued under these Acts
In simple terms:
This Code will not affect, change, or limit the rights, benefits, or obligations under MGNREGA or under the Coal Mines Provident Fund Act or their schemes.
Those special laws continue to operate fully as they are, regardless of what this Code says.
Section 67. Power of appropriate Government to make rules.
67. (1)
What it says (short): The appropriate Government may make rules to carry out the Code, but must do so subject to previous publication.
Detailed explanation:
This gives the Government the general power to make regulations (rules) necessary to implement the Code.
“Subject to the condition of previous publication” means the Government must publish the proposed rules (usually by notification) before finalising them — so that stakeholders and the public are aware of the proposal and any objections or representations can be made. It is a procedural safeguard to ensure transparency and to allow interested persons to comment before rules are enacted.
(2)
What it says (short): Lists specific matters for which the State (or appropriate Government) may make rules. Each paragraph below explains what kind of rules may be made under that head.
Detailed explanation (clause by clause):
(a) the manner of calculating the wages under sub-section (4) of section 6;
Rules here will set out precise formulas, inclusions/exclusions, rounding rules, or steps to determine wages as required by section 6(4). This removes ambiguity about how wages are computed.
(b) the arduousness of work to be taken into account in addition to minimum rate of wages for certain category of workers under clause (b) of sub-section (6) of section 6;
Rules can define how “arduousness” (physically/mentally demanding work) is assessed and quantified, and how that translates into extra pay over the minimum rate — who qualifies, assessment criteria, and rate adjustments.
(c) the norms under clause (c) of sub-section (6) of section 6;
This allows specification of detailed norms or standards referenced in s.6(6)(c) (for example, standards for particular categories of employment or adjustments to wages), so the broad provision becomes operational.
(d) the cases and circumstances in which an employee employed for a period of less than the requisite number of hours shall not be entitled to receive wages for a full normal working day, under section 10;
Rules will list exceptions and conditions (e.g., fractional-day employment, short-duration engagements, or authorised breaks) determining when full-day wages should not be paid despite partial attendance.
(e) the extent and conditions, which shall apply in relation to certain classes of employees under sub-section (2) of section 13;
Enables tailoring of protections/conditions (like hours, overtime, exemptions) for specific employee classes (e.g., managerial staff, apprentices) as contemplated by s.13(2).
(f) the longer wage period for fixation of minimum rate of wages as referred to in section 14;
Rules may permit or prescribe longer reference periods (monthly/quarterly/yearly) for fixing minimum wages in particular sectors, with methodology and limits.
(g) the manner of deducting loans made from any fund constituted for the welfare of labour under sub-clause (ii) of clause (f) of sub-section (2) of section 18;
Rules will set procedures for recovering loans from welfare funds — instalment schedules, maximum deduction per wage period, documentation, and employee consent mechanisms.
(h) the manner of recovery of excess of amount under sub-section (4) of section 18;
If excess amounts were paid, rules will prescribe how to legitimately recover them (timeframe, maximum recoverable per pay cycle, dispute resolution).
(i) the authority to provide approval for imposition of fine under sub-section (1) of section 19;
Rules identify which authority (e.g., employer’s internal authority, a designated external authority) must grant approval before fines may be imposed on employees, and the process for obtaining such approval.
(j) the manner of exhibition of the acts and omissions to be specified in the notice under sub-section (2) of section 19;
Rules explain how the employer must display or communicate the alleged acts/omissions (format, time, place, language, notice content) when imposing disciplinary fines.
(k) the procedure for the imposition of fines under sub-section (3) of section 19;
Sets out the steps an employer must follow before imposing fines: notice, hearing, record keeping, appeal or representation mechanism, and limits on amounts.
(l) the form of the register to record all fines and all realisations thereof under sub-section (8) of section 19;
Prescribes the statutory format of the fines register so entries are uniform and auditable (columns for dates, offences, notices, amounts collected, receipts).
(m) the procedure for making deductions for absence from duty under sub-section (2) of section 20;
Rules will clarify when and how wage deductions for absence can be made (calculation method, documentation, notice to employee).
(n) the procedure for making deductions for damage or loss under sub-section (2) of section 21;
Prescribes safeguards and steps before deducting for damage — inquiry, proof of causation, limits on deduction, opportunity to contest.
(o) the form of the register to record all deductions and all realisations thereof under sub-section (3) of section 21;
A standard register format for deductions (what was deducted, why, authorisation, amounts recovered) to ensure transparency.
(p) conditions for recovery of advance of money given to an employee after the employment began under clause (b) of section 23;
Rules lay out permissible terms for recovering post-employment advances — instalments, maximum deduction per pay period, consent requirements.
(q) conditions for recovery of advances of wages to an employee not already earned under clause (c) of section 23;
Similar to (p), but specifically for wage advances that haven’t yet been earned — rules can set limits, interest, and recovery safeguards.
(r) deductions for recovery of loans and the rate of interest payable thereon under section 24;
Rules will regulate permissible deduction rates, interest calculation for employer-provided loans, and documentation.
(s) the manner of regulating the procedure by the Central Advisory Board and the State Advisory Board, including that of the committees and sub-committees constituted by the State Advisory Board, under sub-section (10) of section 42;
Rules set procedural details for how advisory boards and their committees operate: meeting frequency, quorum, agenda, record-keeping, public participation, representation rules.
(t) the terms of office of members of the Central Advisory Board, the State Advisory Board, including that of the committees and sub-committees constituted by the State Advisory Board, under sub-section (11) of section 42;
Provides specifics on tenure, reappointment, resignation, removal, allowances and other service conditions for board/committee members.
(u) the authority and manner of depositing with such authority, various undisbursed dues under clause (b) of sub-section (1) of section 44;
Rules designate which authority holds undisbursed dues (e.g., unclaimed wages) and the process for depositing, claiming, and accounting.
(v) the form of single application in respect of a number of employees under sub-section (5) of section 45;
Prescribes a standard consolidated application form for multiple employees to make claims collectively, and the particulars to be included.
(w) the form for making an appeal to the appellate authority under sub-section (1) of section 49;
Specifies the format, required attachments, service method, and fee (if any) for an appeal to the appellate authority.
(x) the manner of maintenance of a register by the employer under sub-section (1) of section 50;
Details register structure (columns/fields), retention period, inspection protocol, and electronic/physical storage rules.
(y) the form and manner of issuing wage slips under sub-section (3) of section 50;
Standardises wage slip content (earnings, deductions, net pay, employer details), issuance timing, and proof of delivery.
(z) the other powers to be exercised by the Inspector-cum-Facilitator under sub-section (5) of section 51;
Lists any additional powers the Inspector-cum-Facilitator may have (e.g., information requests, advisory roles), with limits and procedures.
(za) the manner of imposing fine under sub-section (1) of section 56;
Procedures for compounding/fining: how amounts are calculated, notices, timelines, and who can accept payment.
(zb) the manner of composition of offence by a Gazetted Officer specified under sub-section (4) of section 56;
Rules about the compounding process by authorised Gazetted Officers — applications, documentation, recording the composition, and reporting.
(zc) any other matter which is required to be, or may be, prescribed under the provisions of this Code.
A catch-all allowing rules on other technical or procedural points not specifically listed but necessary to implement the Code.
(3)
What it says (short): The Central Government may make rules (subject to previous publication) for the specific list of central matters that follow.
Detailed explanation (each item):
(a) the manner of fixing floor wage under sub-section (1) of section 9;
Rules will prescribe the methodology and criteria for setting a statutory floor wage (base national-level minimum), including factors to consider and periodicity.
(b) the manner of consultation with State Government under sub-section (3) of section 9;
Rules about how the Central Government must consult States when fixing floor wages — formats, timelines, data exchange, dispute resolution.
(c) the manner of making set on or set off for the sixth accounting year under clause (i) of sub-section (7) of section 26;
Technical rules for carrying forward or setting off surplus/deficit for the sixth accounting year — computations, schedules, and documentation.
(d) the manner of making set on or set off for the seventh accounting year under clause (ii) of sub-section (7) of section 26;
Similar to (c) but for the seventh year; detailed accounting methods and limits to carry forward/adjust.
(e) the manner of calculating gross profit under clauses (a) and (b) of section 32;
Precise formulae and accounting adjustments to determine gross profit for purposes of contribution/allocable surplus, ensuring uniform treatment across employers.
(f) such further sums in respect of employer under clause (c) of section 34;
Rules specifying additional employer contributions or sums that may be relevant under s.34(c), including how they are computed and collected.
(g) the manner of utilising the excess of allocable surplus to be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year under sub-section (1) of section 36;
Rules detailing how surplus amounts are to be carried forward and used in future years, with safeguards and order of priority.
(h) the manner of utilising the minimum amount or the deficiency to be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year under sub-section (2) of section 36;
Similar to (g) but dealing with deficits or minimum amounts and their set-off across accounting years.
(i) the manner of holding an enquiry under sub-section (1) of section 53.
Procedure for inquiries conducted by officers appointed under s.53: summons, evidence, recording, rights of parties, and timeframes.
(4)
What it says (short): Every Central Government rule made under this section must be laid before both Houses of Parliament; Parliament can modify or annul the rule within set periods; changes do not invalidate prior actions taken under the rule.
Detailed explanation:
Laying requirement: After a Central rule is made, it must be presented to both Lok Sabha and Rajya Sabha while they are in session for a total of 30 days. These 30 days can be in one session or spread over multiple successive sessions.
Parliamentary control: If, before the end of the session immediately following the sessions in which the rule was laid, both Houses agree to modify the rule or to declare that the rule should not be made (i.e., annul it), then the rule will either continue in the modified form or cease to have effect accordingly.
Savings clause: Any modification or annulment will not affect the validity of actions already taken under the original rule. In other words, acts done while the rule was in force remain valid even if Parliament later changes or cancels the rule.
Purpose: This is the standard negative/affirmative parliamentary oversight mechanism—ensuring executive rules are subject to legislative scrutiny and control while protecting legal certainty for past actions.
(5)
What it says (short): Every rule made by a State Government under this section must be laid before the State Legislature as soon as possible after it is made.
Detailed explanation:
State rules are subject to the State Legislature’s oversight; the State Government must present such rules to the Legislature at the earliest opportunity (the precise timelines/procedure may be governed by State legislative practice).
This ensures democratic accountability and gives legislators the chance to review, and where applicable, disallow or modify State rules.
Section 68. Power to remove difficulties.
(1)
This provision gives the Central Government a temporary and limited power to deal with difficulties that may arise while implementing the Code.
If the Central Government finds that:
there is a practical difficulty
or a gap
or some part of the Code cannot be effectively applied as written,
it may issue an order, published in the Official Gazette, to remove that difficulty.
However, this power is restricted:
Any order made to remove difficulty must not contradict or be inconsistent with the provisions of the Code.
The Central Government cannot use this power after three years from the date the Code comes into force.
Meaning:
This is a temporary “problem-solving power” that allows the Government to clarify or adjust minor operational issues during the early years of implementation, but it cannot rewrite the law or override the Code.
Proviso
No difficulty-removal order can be issued after 3 years from the commencement of the Code.
Purpose:
To prevent the Government from using this power indefinitely.
It is only for the initial implementation phase.
(2)
Every order issued under this section must be laid before both Houses of Parliament as soon as possible after it is issued.
Meaning:
Parliament gets to review such orders.
This ensures parliamentary oversight and transparency.
If Parliament disagrees, it can take action (using its legislative powers).
In simple terms:
Section 68 allows the Central Government to fix early implementation issues of the Code—but only temporarily, only in a limited manner, and always under Parliament’s supervision.
Section 69. Repeal and savings.
69. (1)
This sub-section repeals four earlier labour laws:
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
Meaning:
Once this Code comes into effect, these four Acts cease to exist as independent laws.
All their subjects (wages, minimum wages, bonus, equal pay) are now merged into this Code.
(2)
Even though these earlier Acts are repealed, any action already taken under them continues to remain valid.
This includes:
notifications
nominations
appointments
orders
directions
wage amounts prescribed
any action taken for any purpose under those earlier Acts
All these will be treated as if they were made or taken under the corresponding provisions of this Code, as long as they:
do not conflict with any provision of this Code, and
remain in force until they are replaced or repealed by a new notification under this Code.
Meaning:
Everything done under the old Acts is carried forward and continues temporarily.
It does not become invalid immediately after repeal.
However, once the Central Government replaces or repeals them under this Code, the old notifications/orders will stop applying.
This ensures continuity, avoids legal vacuum, and helps smooth transition to the new Code.
(3)
This sub-section says that Section 6 of the General Clauses Act, 1897 will also apply to the repeal of the four Acts mentioned above.
What Section 6 of the General Clauses Act means:
When a law is repealed:
previous actions, rights, obligations, penalties, investigations, legal proceedings, etc.
do not automatically end
unless the new law expressly states otherwise.
Meaning in context:
Ongoing cases under the old Acts can continue.
Rights and liabilities that arose under the old Acts remain enforceable.
Offences committed under the old Acts can still be investigated or punished.
Thus, repeal does not wipe out past actions or responsibilities.
It protects the continuity of legal proceedings and rights.
