Compliance Requirements under the Rules in Accordance with the Code

1. Mode of payment of wages in Gujarat (Section 15)

All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee or by the electronic mode.

Provided that the appropriate Government may, by notification, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account

2. Fixation of wage period in Gujarat (Section 16)

The employer shall fix the wage period for employees as daily or weekly or fortnightly or monthly subject to the condition that no wage period in respect of any employee shall be more than a month.

Employers may choose to fix different wage periods for different establishments.

3. Payment of wages as per specified timelines in Gujarat (Section 17)

The wages should be paid by employers as follows: Daily at the end of each shift, weekly before the weekly holiday; fortnightly within two days after the fortnight ends, and monthly by the seventh day of the following month unless until another date specified by the respective state government.

There may be separate due dates specified by the respective state government under their respective state laws, and then the due date specified by the state government will be considered.

4. Payment of wages in case of dismissal/retrenchment within specified timelines in Gujarat (Section 17(2))

Where an employee has been:

1. Removed/dismissed from service or

2. Retrenched/has resigned from service or became unemployed due to closure of establishment wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or as the case may be, his resignation

5. Maximum deduction limit from wages in Gujarat (Section 18(3),(4), Rule 11)

If total deduction exceed 50% of the wages of an employee, the excess shall be carried forward and recovered from the wages of succeeding wage period or wage periods, as the case may be, in such instalments so that the recovery in any month shall not exceed the 50% of the wages of the employee in that month.

6. Display of notice specifying acts and omissions in Gujarat (Section 19(2), Rule 13)

Notice specifying acts and omissions for which fine is to be imposed shall be displayed at the conspicuous places in the premises of the work place in which the employment is carried on, so that every concerned employee would easily read the contents of the notice.

Copy of the notice shall be sent to the inspector-cum-facilitator having jurisdiction.

7. Imposition of fines in Gujarat (Section 19(3)&(4), Rule 14)

Total amount of fine which may be imposed in any one wage-period on any employee shall not exceed an amount equal to 3% of the wages payable to him in respect of that wage-period.

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 Section 19 (2)

2. Employer shall give an intimation in writing specifying therein the detailed particulars for obtaining the approval of the imposition of fine to the Assistant Commissioner of Labour who shall, before granting or refusing the approval, give opportunity of being heard to the employee and the employer concerned.

8. No fines for employees under the age of 15 years in Gujarat (Section 19(5))

No fine shall be imposed on any employee who is under the age of fifteen years.

9. Recovery of fines from employees within 90 days of its imposition in Gujarat (Section 19(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.

10. No deductions to be made from the wages except those authorised under this Code in Gujarat (Section 18)

There shall be no deductions from the wages of the employee, except those as are authorised under this Code.

For deduction details refer Section 18(2) of this code

Following transaction shall also be treated as deduction unless otherwise provided by the respective state government :

(a) any payment made by an employee to the employer or his agent;

(b) any loss of wages to an employee, for a good and sufficient cause, resulting from—

(i) the withholding of increment or promotion, including the stoppage of an increment; or

(ii) the reduction to a lower post or time-scale; or

(iii) the suspension

11. Intimation of deductions made for absence from duty in Gujarat (Section 20, Rule 15)

Where an employer makes any deduction in pursuance of the proviso to subsection (2) of section 20, he shall make intimation of such deduction to the Inspector-cum-Facilitator having jurisdiction within 10 days from the date of such deduction explaining therein the reason of such deduction.

1. Section 20(2) states the amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to the total period within such wage-period during which by the terms of his employment he was required to work

2. Provisio to Section 20(2) states Provided that, subject to any rules made in this behalf by the appropriate Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.

12. Deductions for absence from duty in Gujarat (Section 20 (1))

Deductions may be made under clause (b) of section 18(2) only on account of the absence of an employee from the place or places where by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.

13. Deductions for damage or loss in Gujarat ( Section 21, Rule 16)

Deductions under clause (c) or clause (n) of sub-section (2) of section 18 for damage or loss shall not exceed the amount of the damage or loss caused to the employer by negligence or default of the employee.

1. Deduction for any damages or loss shall be intimated to the employee within 15 days from the date of such deduction.

2. The opportunity of being heard shall be given to the employee before such a deduction.

3. All deductions and all realizations shall be recorded in a register to be kept by the employer in Form- I appended to these rules, electronically or otherwise (Rule 42(2)).

14. Deductions for accommodation/amenities/services provided to employees in Gujarat ( Section 22)

Deductions for house-accommodation/amenities/services supplied by the employer shall not be made from the wages of an employee, unless the house-accommodation amenity or service has been accepted by him as a term of employment or otherwise and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and shall be subject to such conditions as the appropriate Government may impose.

15. Recovery of advances and maintain details of recoveries in Form-I in Gujarat (Section 23, Rule 17)

Advances given before employment are deducted from the first wage payment, excluding travel expense advances. Advances given after employment are repaid in instalments set by the employer. Each instalment must not exceed 50% of the employees wages for any wage period.

Recovery details shall be recorded in the register maintained in Form-I.

16. Deductions for recovery of loans in Gujarat (Section 24, Rule 18)

Deductions for recovery of loans granted for house building or other purposes approved by the State Government, and the interest due in respect there of shall be, subject to any direction made circular issued by the State Government from time to time regulating the extent to which such loans may be granted and the rate of interest shall be payable thereon.