Home  /  Code on Wages, 2019  /  Section 24

Section 24: Chapter not to apply to Government establishments

The Code on Wages, 2019 (Act No. 29 of 2019) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Payment of Wages
Competent Labour Forum
Act No. 29 of 2019
Section 23 All 67 Sections of Code on Wages, 2019 Section 25

Legal Commentary & Landmark Judgments: Section 24

Section 24 specifies that the provisions of Chapter II (Payment of Wages, Sections 15 to 25) shall not apply to Government establishments—comprising departments of the Central Government or State Governments—unless the appropriate Government expressly notifies their application.

  • Statutory Immunity for Government Departments: Exempts departmental undertakings directly managed by the Central or State Governments from the wage period, payment timing, and deduction restrictions of Chapter II.
  • Preservation of Civil Service and Treasury Rules: Grounds exemption on the existence of sovereign Fundamental Rules, Civil Service Regulations, and Treasury Rules governing the payment and recovery of government servants' emoluments.
  • Non-Exemption of Autonomous PSUs and Corporations: Clarifies that exemption attaches strictly to departmental government bodies and does not automatically cover public sector corporations, statutory authorities, or government companies.
Key Landmark Precedents:
  • State of Punjab v. Kuldip Singh (1983) 1 SCC 305: The Supreme Court held that sovereign departmental functions governed by statutory civil service rules are distinct from commercial operations under general labor codes, justifying distinct legislative treatment.
  • Steel Authority of India Ltd. v. National Union Waterfront Workers (2001) 7 SCC 1: A Constitution Bench of the Supreme Court clarified that statutory corporations, government companies, and PSUs have distinct juristic personalities and cannot claim automatic departmental sovereign immunity under labor enactments.
Courtroom Practice & Strategic Litigation Guidance:

In defending Public Sector Undertakings (PSUs), municipal corporations, or government-owned corporate entities against claims of delayed wages or illegal deductions under Chapter II, counsel cannot invoke Section 24. Section 24 is strictly confined to departmental administrative wings of the Government; commercial PSUs remain bound by all Chapter II payment and deduction mandates.

Section 23 All 67 Sections of Code on Wages, 2019 Section 25