Under Section 18 of the Code on Wages, 2019, what is the

Solution

Section 19 of the Code on Wages, 2019 (dealing with fines) provides that the total amount of fine which may be imposed in any one wage period shall not exceed 3% of the wages payable to the employee in that wage period. Before imposing any fine, the employer must give the employee an opportunity of showing cause against the proposed fine fines cannot be imposed arbitrarily. Additionally, no fine can be imposed on any employee who is under the age of 15 years. Fines that are imposed but not realised within 90 days from the date of imposition lapse entirely and cannot be recovered thereafter. Under Section 18, permissible deductions from wages are exhaustively listed and include deductions for fines, absence from duty, damage or loss, services rendered by the employer, recovery of loans or advances, income tax, and contributions to PF/ESI. Any deduction not falling within the enumerated categories is illegal.