(1) (a) The Chief Inspector shall be the Authority competent to approve, the acts and omissions in respect of which fines may be imposed and to approve the purpose to which the fines realised shall be applied.
(b) Any employer requiring the power to impose fines in respect of any acts and omissions on the part of the employees shall send to the Chief Inspector:
(i) a list in English or in Telugu in duplicate, clearly defining such acts and omissions
(ii) in the case where the employer himself does not intend to be the sole persons empowered to impose fines, a list in duplicate showing those appointments in his establishment the incumbents of which may pass orders imposing fines and the class of establishment on which the incumbent of such appointment may impose fines; and
(iii) a list showing the purpose to which the fines realised shall be applied.
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(c) The Chief Inspector may on receipt of the list prescribed in clause (a) or subclause (iii) of clause (b) above after such enquiry as he considers necessary, pass order either:-
(i) disapproving the list ; or
(ii) approving the list either in its original form or as amended by him in which case such list shall be considered to be an approved list;
Provided that no orders disapproving or amending any list shall be passed unless the employer shall have given an opportunity of showing cause orally or in writing against such order.
(d) The employer shall display at or near the main entrance of the establishment or at a conspicuous place a copy in English and in Telugu of the list approved under clause (c) above.
(e) No fine shall be imposed by any person other than an employer or a person holding an appointed name in the list submitted under clause (b).
(2) (a) Any employer desiring to impose fine on an employee or to make a deduction from his wages for damage or loss shall explain personally to the said person the act or omission, or damages or loss. in respect of which the fine or deduction is proposed to impose, and shall hear his explanation, the charge in respect of which it is proposed to impose the fine or deduction and explanation of the person concerned shall be reduced to writing, the signature of such employee shall be obtained.
(b) Any person other than employer imposing a fine or directing the making of a deduction for damage or loss shall at once inform the employer of all particulars so that the register prescribed in sub-rule (3) or sub-rule (4) below may be duly completed.
(3) (a) The employer of any establishment in respect of which he has obtained approval under sub-section (1) of section 41 to a list of acts and omissions in respect of which fines may be imposed, shall maintain a Register of Fines in Form-X.
(b) At the beginning of the Register of Fines, the approved purpose or purposes on which the fines are to be expended shall be entered and serially numbered.
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(c) When any disbursements are made from the fines realised, a deduction entry of the amount so expended shall be made in the Register of Fines, the vouchers or receipts in respect of the amounts so expended shall be serially numbered and kept separately, the serial number of each voucher or receipt and the amount to which it relates being noted in the remarks column of the register. If fine for more than one purpose has been approved, the entry of the disbursements shall also indicate the purpose for which it is made.
(4) In every establishment in which deductions for damage or loss are made, the employer shall maintain the register in Form-XI.