(1) No fine shall be imposed on any employee save in respect of those acts and omissions on his part as the employer, with the previous approval of the appropriate Government or of such authority as may be prescribed, may have specified by notice under sub-section (2).
(2) A notice specifying such acts and omissions shall be exhibited in such manner as may be prescribed, on the premises in which the employment is carried on.
(3) No fine shall be imposed on any employee until such employee has been given an opportunity of showing cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
(4) The total amount of fine which may be imposed in any one wage-period on any employee shall not exceed an amount equal to three per cent. of the wages payable to him in respect of that wage-period.
(5) No fine shall be imposed on any employee who is under the age of fifteen years.
(6) No fine imposed on any employee shall be recovered from him by instalments or after the expiry of ninety days from the day on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
(8) All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority.
Legal Commentary & Landmark Judgments: Section 19
Section 19 strictly regulates the imposition of disciplinary fines on employees, prohibiting any fine save with the prior approval of the appropriate Government, restricting fines to specified acts and omissions exhibited on notice boards, and capping total fines at three per cent of wages payable in a wage period.
Employers cannot levy arbitrary ad-hoc financial penalties for lateness, productivity shortfalls, or minor errors. Compliance counsel must ensure that: (a) a formal list of acts and omissions is submitted to and approved by the Labour Commissioner, (b) a written show-cause notice is issued before deducting any fine, (c) total fine deductions do not exceed 3% of monthly wages, and (d) all fine collections are deposited into the State Labour Welfare Fund.