Where the ownership or management of an establishment is transferred, whether by agreement or by operation of law, from the employer in relation to that establishment to a new employer, every employee who has been in continuous employment for not less than six months in that establishment immediately before such transfer shall be entitled to the notice and the service compensation in accordance with the provisions of sub-section (1) of section 47:
Provided that nothing in this section shall apply to an employee in any case where there has been a change of employers by reason of the transfer, if -
(a) the employment of the employee has been interrupted by such transfer;
(b) the terms and conditions of employment applicable to the employee after such transfer are not in any way less favourable to the employee than those applicable to him immediately before such transfer; and
(c) the new employer is under the terms of such transfer or otherwise, legally liable to pay to the employee in the event of termination of his services, service compensation on the basis that his employment has been continued and has not been interrupted by the transfer.
CHAPTER IX APPOINTMENT, POWERS AND DUTIES ETC., OF THE AUTHORITY TO HEAR AND DECIDE CLAIMS RELATING TO WAGES ETC. OF EMPLOYEES IN ESTABLISHMENTS
50. Appointment of authority to hear and decide claims relating to wages etc., - The Government may, by notification, appoint an authority to hear and decide for any specified area all claims arising out of deductions from the wages or delay in payment of the wages or service compensation payable under this Act to employees in any establishment in that area.
51. Claims arising out of deductions from wages or delay in payment of wages etc., and penalty for malicious or vexatious claims - (1) Where, contrary to the provisions of this Act, any deduction has been made from the wages of an employee in an establishment or any payment of wages or service compensation to him has been delayed, such employee himself, or if he is dead any of his dependents or any legal practitioner, or any official of a registered trade union authorised in writing to act on behalf of such employee or dependent, or any Inspector under this Act or any other person acting with the permission of the authority appointed under section 50 may apply to such authority for a direction under sub-section (2):
Provided that every such application shall be presented within one year from the date on which the deduction from wages was made or from the date on which the payment of the wages or service compensation was due to be made, as the case may be:
Provided further that any application may be admitted after the said period of one year when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.
(2) When any application under sub-section (1) is entertained the authority shall, hear the applicant and the employer or give them an opportunity of making representation either in person or through an authorised representative, and after such further inquiry, if any, as may be necessary, may, without prejudice to any other penalty to which such employer is liable under this Act, direct the refund to the employee of the amount deducted, or the payment of the delayed wages or the service compensation together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted or the amount of delayed wages and not exceeding ten rupees in case of service compensation:
Provided that, no direction for the payment of compensation shall be made in the case of delayed wages or service compensation if the authority is satisfied that the delay was due to -
(a) a bona fide error or a bona fide dispute as to the amount payable to the employee ; or
(b) the existence of exceptional circumstances, such that the employer was unable, though exercising reasonable diligence, to make prompt payment; or
(c) the failure of the employee to accept payment.
(3) If the authority hearing any application under this section is satisfied that it was either malicious or vexatious, the authority may direct that a penalty not exceeding five rupees to be paid to the employer by the person presenting the application.
(4) Any amount directed to be paid under this section may be recovered -
(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate; and
(b) if the authority is not a Magistrate, by any Magistrate to whom the authority makes an application in this behalf, as if it were a fine imposed by such Magistrate.
Explanation. - For the purposes of this section, the term 'employee' shall include part-time employee also.
52. Single application in respect of claims from unpaid group - (1) Employees are said to belong to the same unpaid group if they are borne on the same establishment and if their wages or service compensation for the same period or periods have remained unpaid after the day on which they were due.
(2) A single application may be presented under Section 51 on behalf, or in respect of any number of employees belonging to the same unpaid group, and in such case the maximum compensation that may be awarded under subsection (2) of that section shall be ten rupees per head.
(3) The authority may deal with any number of separate pending applications presented under section 51 in respect of persons belonging to the same unpaid group, as a single application presented under sub-section (2) of this section, and the provisions of that sub-section shall apply accordingly.
53. Appeal - (1) An appeal against an order dismissing either wholly or in part an application made under sub-section (1) of Section 51 or against a direction made under sub-section (2) or sub-section (3) of that section may be preferred before the authority to be notified by Government within thirty days of the date on which the order or direction was served on the applicant or the employer, as the case may be-
(a) by the employer, if the total sum directed to be paid by way of wages, service compensation and compensation exceeds three hundred rupees; or
(b) by the person who had applied under sub-section (1) of section 51 if the total amount of wages or service compensation claimed to have been withheld from the employee or from the unpaid group to which he belonged exceeds fifty rupees; or
(c) by any person directed to pay a penalty under sub-section (3) of section 51.
(2) Save as provided in sub-section (1) any order dismissing either wholly or in part an application made under sub-section (1) of section 51 or a direction made under sub-section (2) or sub-section (3) of that section shall be final.
54. Conditional attachment of property of employer - (1) Where at any time after an application has been made under sub-section(1) of section 51, or where at any time after an appeal has been filed under clause (b) of sub-section
(1) of section 53, the authority referred to in those sections is satisfied that the employer is likely to evade payment of any amount that may be directed to be made under section 51 or section 53, the Authority, except in cases where it is of opinion that the ends of justice would be defeated by the delay, after giving the employer an opportunity of making representation may direct the attachment of so much of the property of the employer as is in the opinion of the authority sufficient to satisfy the amounts which may be payable under the direction.
(2) The provisions of the Code of Civil Procedure, 1908, (Central Act V of 1908), relating to attachment before judgment under that Code, shall, so far as may be, apply to any direction for attachment under sub-section (1).
55. Power of authority appointed under section 50 - Every authority appointed under section 50 shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (Central Act V of 1908) for the purpose of taking evidence and of enforcing the attendance of witness and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of section 195 and of Chapter XXVI of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).
56. Power of Government to prescribe costs and court fees for proceedings under this Chapter - The Government may prescribe the scales of costs which may be allowed and the amount of court fees which shall be payable in respect of any proceedings under this Chapter.
CHAPTER X APPOINTMENT, POWERS AND DUTIES OF THE CHIEF INSPECTOR AND INSPECTORS
57. Appointment of Chief Inspector and Inspectors - The Government may, by notification, appoint a Chief Inspector and such number of Inspectors as may be necessary for the purposes of this Act and fix the local limits of their jurisdiction.
58. Powers and duties of Chief Inspector - The Chief Inspector may exercise and perform in addition to the powers and duties conferred and imposed on him by or under this Act, all the powers and duties of an Inspector under this Act.
59. Powers and duties of Inspectors - An Inspector may, within the local limits for which he is appointed, -
(a) enter at all reasonable hours with the assistance of such persons in the service of the Government or any local authority as he thinks fit, any place which is or which he has reason to believe is used as an establishment;
(b) make such inspection of the premises and of any registers or other records and take on the spot or otherwise evidence of such persons, as he may deem necessary in the manner prescribed;
(c) exercise such other powers as may be necessary for carrying out the purposes of this Act.
60. Chief Inspector and Inspectors to be public servants - The Chief Inspector and every Inspector shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860.
CHAPTER XI PENALTIES FOR OFFENCES
61. Penalties - (1) Any employer who makes any false or incorrect statement under section 3 shall be punishable with fine which may extend to one hundred rupees.
(2) Any employer who contravenes any of the provisions of the sections 3, 4, 5, 7, 9 to 12, 13, 15 to 32, 34 to 47, 49, 68 and 69 shall be punishable for a first offence with fine which may extend to rupees one hundred, for a second offence with fine which shall not be less than rupees two hundred and fifty but which may extend to rupees five hundred and for the third or subsequent offences with imprisonment for a term which may extend to three months and with a fine which shall not be less than rupees five hundred but which may extend to rupees one thousand :
Provided that where any employer fails to posses a valid certificate of registration in contravention of the provisions of sections 3, 4 and 5 he shall, on conviction be punishable, in the case of a continuing offence with a further fine which may extend to rupees two hundred and fifty for each day during which the offence continues.
(3) Whoever contravenes the provisions of section 8 shall be punishable for a first offence with fine which may extend to one hundred rupees, and for a second or subsequent offence with fine which may extend to two hundred and fifty rupees.
(4) Whoever contravenes the provisions of sub-section (2) of section 48 shall on conviction be punishable with fine which may extend to rupees fifty for each day during which the offence continues.
(5) Whoever contravenes the provisions of sub-section (3) of section 48 shall on conviction be punishable with a fine which may extend to rupees fifty for each day during which the offence continues.
62. Power to Compound offence - The Chief Inspector may authorise by notification any officer to accept from any person who is reasonably believed to have committed an offence under sections 3, 4, 7, 8, 10, 12, 15, 16, 17, 19, 20, 31 and 63 of this Act or the rules made thereunder a sum of money not exceeding rupees one hundred in case of each violation by way of compounding such offence. Any proceedings taken against such person in respect of such offence shall on payment of such money be withdrawn and no further proceedings shall be taken in respect of such offence.
63. Penalty for obstructing Inspector, etc., - Any person who wilfully obstructs an Inspector in the exercise of any power conferred on him by or under this Act or any person lawfully assisting such Inspector in the exercise of such power, or who fails to comply with any lawful direction made by such Inspector, shall be punishable with imprisonment for a term which may extend to three months or with both.
64. Procedure in trial of offences - (1) No Court shall take cognizance of a complaint against an employer under sub-section (2) of section 61 relating to deductions from the wages or delay in payment of wages or service compensation payable under this Act to an employee, unless an application in respect of facts constituting the offence has been presented under section 51 and has been granted wholly or in part and the authority empowered under the latter section or the appellate authority granting such applications has sanctioned the making of the complaint.
(2) Before sanctioning the making of a complaint against the employer for such an offence, the authority empowered under section 50 or the Appellate Authority, as the case may be, shall give such employer an opportunity of showing cause against the granting of such sanction, and the sanction shall not be granted if such employer satisfies the authority or Court that his default was due to-
(a) a bonafide error or bonafide dispute as to amount payable to the employee; or
(b) the existence of exceptional circumstances, such that the employer was unable, though exercising diligence, to make prompt payment; or
(c) the failure of the employee to accept payment.
(3) No Court shall take cognizance of a complaint against any person for an offence under section 61 other than the offence referred to in sub-section (1) or for a contravention of any rule made under section 71 except on a complaint made by or with the previous sanction in writing of an Inspector under this Act within six months from the date on which the offence or contravention is alleged to have been committed.
(4) In imposing any fine for an offence referred to in sub-section (1), the Court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 51.
65. Bar of suits - No Court shall entertain any suit for the recovery of wages or service compensation or of any deduction therefrom in so far as the sum so claimed-
(a) forms the subject of an application under section 51 which has been presented by the plaintiff and which is pending before the authority appointed under section 50 or of an appeal under section 53; or
(b) has formed the subject of a direction under section 51 in favour of the plaintiff; or
(c) has been adjudged, in any proceeding under section 51 not to be owned to the plaintiff; or
(d) could have been recorded by an application under section 51.
66. Contracting Out - Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.
67. Offences to be tried by magistrate of second class or above - No Court, inferior to that of a Magistrate of the Second Class shall try any offence punishable under this Act, or any rule or order made thereunder.
CHAPTER XII MISCELLANEOUS
68. Maintenance of registers and records and display of notices, etc., - (1) Subject to the control of the Government an employer shall maintain such registers and records and display such notices, as may be prescribed. All such registers and records shall be kept, and all such notices shall be displayed on the premises of the establishment to which they relate.
(2) Every employer shall, on demand produce or cause to be produced for inspection by an Inspector all registers, records, and notices required to be kept by or under this Act.
(3) Every employer shall submit such returns relating to his business, in such manner, within such period, and to such authority as may be prescribed.
(4) Every employer shall give an order of appointment of his employee in the establishment before such employee joins the service and shall also furnish a copy of such order to the Inspector having jurisdiction over the area, within three days of issue of each such order:
Provided that in case of an employee in the service at the commencement of this Act, the employer shall give such order of appointment within a period of three months from the date of such commencement.
69. Restriction on double employment on a Holiday or during leave - No employee shall work in any establishment nor shall any employer knowingly permit an employee to work in any establishment on a day or part of a day on which the employee is given a holiday or is on leave in accordance with the provisions of this Act.