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Section 45: Claims under Code and procedure thereof

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

Statutory Mandate
Chapter VI: Payment of Dues, Claims and Audit
Competent Labour Forum
Act No. 29 of 2019
Section 44 All 67 Sections of Code on Wages, 2019 Section 46

Legal Commentary & Landmark Judgments: Section 45

Section 45 of the Code on Wages, 2019 is the central adjudicatory engine of the Code, empowering designated Gazetted Authorities to hear and determine claims arising from non-payment of minimum wages, illegal deductions, bonus discrepancies, and wage discrimination, arming them with civil court evidentiary powers, establishing a 3-year limitation period, authorizing compensation awards up to ten times the claim, and prescribing summary recovery via land revenue certificates.

  • Broad Locus Standi and Extended 3-Year Limitation: A claim under Section 45 can be filed by the aggrieved employee, any registered Trade Union of which the employee is a member, or the Inspector-cum-Facilitator. The limitation period is set at three years from the date on which the claim arose (a substantial expansion from the 6-month or 1-year windows under legacy laws), with discretionary power to condone delays upon showing sufficient cause.
  • Restitutionary and Exemplary Penal Compensation: Where the Authority finds that an employee was paid less than minimum wages, subjected to unauthorized deductions, or deprived of bonus, it directs payment of the due amount together with compensation up to ten times the unpaid amount. This punitive multiplier deters chronic employer non-compliance.
  • Summary Adjudication and Arrears of Land Revenue Recovery: The Authority exercises powers of a Civil Court under the CPC, 1908 (summoning witnesses, enforcing discovery, examining oaths). The Authority must endeavor to dispose of the claim within three months. Defaults in payment within the stipulated order period lead to issuance of a recovery certificate to the District Collector/Magistrate to recover the amount as arrears of land revenue.
Key Landmark Precedents:
  • People's Union for Democratic Rights (PUDR) v. Union of India (1982) 3 SCC 235: The Supreme Court held that state machinery must provide expeditious, accessible statutory remedies to enforce wage rights, as denying minimum wages violates fundamental rights under Article 23.
  • Town Municipal Council, Athani v. Presiding Officer, Labour Court (1969) 1 SCC 873: The Supreme Court affirmed that specialized statutory wage claim authorities possess comprehensive summary powers to quantify wage arrears, overtime, and benefits without being encumbered by formalistic civil court pleadings.
  • Payment of Wages Inspector v. Surajmal Mehta AIR 1969 SC 590: The Supreme Court ruled that statutory wage authorities have jurisdiction to determine claims where wages are ascertained or determinable under the statute, though complicated, bona fide industrial disputes regarding title or status fall under the Industrial Disputes Act.
Courtroom Practice & Strategic Litigation Guidance:

When defending claims before the Section 45 Authority, employers must raise preliminary objections on limitation if filed beyond three years without a condonation petition. Substantively, employers must produce complete, audited electronic wage registers, signed muster rolls, and bank credit advice sheets under Section 59 to discharge the statutory reverse burden of proof. Claimants and trade unions should calculate claims meticulously and request Section 45(2) exemplary compensation (up to 10x) where deliberate wage suppression is documented.

Section 44 All 67 Sections of Code on Wages, 2019 Section 46