Compliance Requirements under the Rules in Accordance with the Code

1. Fixation of wage period in U.P. (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.

2. Payment of wages as per specified timelines in U.P. (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.

3. Payment of wages in case of dismissal/retrenchment within specified timelines in U.P. (Section 17(2))

Where an employee has been:

1. 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

      4. Maximum deduction limit from wages in UP. (Section 18(3), (4); Rule 12)

The total amount of deduction that may be made in any wage period shall not exceed 50% of the wages

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 fifty per cent. of the wages of the employee in that month.

5. Display of notice specifying acts and omissions in UP. (Section 19(2); Rule 14)

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 be able easily to read the contents of the notice. Copy of the notice shall also be sent to the inspector-cum-facilitator having jurisdiction, manually or electronically within 48 hours.

6. No fines for employees under the age of 15 years in U.P. (Section 19(5))

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

7. Recovery of fines from employees within 90 days of its imposition in U.P. (Section 19(6))

No fine imposed on any employee shall be recovered from him by instalments or after the expiry of 90 days from the day on which it was imposed.

8. No deductions to be made from the wages except those authorised under this Code in U.P. (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

9. Intimation of Deductions made for absence from duty in UP. (Section 20; Rule 16)

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. 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.

10. Deductions for absence from duty in U.P. (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.

11. Deductions for damage or loss in U.P. (Section 21; Rule 17)

Deduction for any damages or loss shall be intimated to the employee within 7 days from the date of such deduction.

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

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 51(2)).

12. Deductions for accommodation/amenities/services provided to employees in U.P. (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.

13. Recovery of advances and maintain details of recoveries in Form-I in U.P (Section 23; Rule 18)

Deduction for recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling expenses. The recovery of advances of money given to an employee after the employment begins or advances of wages to an employee not already earned , shall be made by the employer from the wages of the concerned employee in instalments determined by the employer.

14. Deductions for recovery of loans in UP. (Section 24; Rule 19)

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.

15. Form I: Register of Wages, Overtime, Fine, Deduction for damage and Loss in U.P. (Section 19(8), 21(3), 50(1); Rule 38)

Every employer of an establishment to which this Code applies shall maintain a register in Form I viz. Register of Wages, Overtime, Fine, Deduction for damage and Loss.

Sec 50(1):Every employer of an establishment to which this Code applies shall maintain a register containing the details with regard to persons employed, muster roll, wages and such other details in such manner as may be prescribed. Sec 19(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 Sec 21(3): All deductions and all realizations referred to in sub-section (3) of section 21 shall be recorded in a register to be kept by the employer in Form- I appended to these rules, electronically or otherwise. The provisions of Section 50(1) is not applicable to employers who employs not more than 5 persons for agriculture or domestic purpose.

16. Revision of dearness allowance payable to employee on minimum wages (Rule 6)

The revised dearness allowance so calculated, shall be payable from 1st April or from 1st October, as the case may be.

17. Timely payment of wages w.r.t. contract employees to contractor in U.P. (Section 17; Rule 45)

Where the employees are employed in an establishment through contractor, then, the company or firm or association or any other person who is the proprietor of the establishment shall pay to the contractor the amount payable to him or it, as the case may be, before the date of payment of wages so that payment of wages to the employees shall be made positively in accordance with the provisions of Section 17.

18. Principal Employer to ensure payment of minimum bonus by contractor to its employees in U.P. (Section 26, 43; Rule 46)

Where in an establishment, the employees are employed through contractor and the contractor fails to pay minimum bonus to them under section 26, then, the company or firm or association or other person as referred to in the proviso to section 43 shall, on the written information of such failure, given by the employees or any registered trade union or unions of which the employees are members and on confirming such failure, pay such minimum bonus to the employees.

19. Proportionate reduction in bonus if employee has not worked on all working days in U.P. (Section 27)

Where an employee has not worked all working days in an accounting year, the minimum bonus under Sec. 26(1), if higher than 8.33% of wages for days actually worked, shall be reduced proportionately to reflect only the days worked.

Applicable in the case where an employee has not worked for all days in an accounting year

20. Payment of bonus out of allocable surplus in U.P. (Section 31(1))

The bonus shall be paid out of allocable surplus: – 60% in case of banking company – 67% in case of other establishment of the available surplus

(Maximum limit of bonus :- 20% of the salary or wages)

21. Imposition of fines in U.P. (Section 19(1); Rule 13)

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)

Sec 19 (1): The Regional Additional/Deputy Labour Commissioner for the employee’s workplace shall be the Authority.