Labour Law Expertsby Chheda Consultants

Chapter VII · Code on Wages

Inspector-cum-Facilitator

This chapter creates the Inspector-cum-Facilitator, the government officer who can both advise employers and workers on following the Wages Code and inspect establishments to check they do. It covers how these officers are appointed, how inspections can be run online or picked at random once the government notifies it, and what an inspector can ask for on a visit. It matters because anyone required to produce documents or give information is treated as legally bound to do so under sections 175 and 176 of the Indian Penal Code, so refusing can be an offence.

1 section ~2 min read Official text, PDF p. 23
HR managersBusiness ownersPayroll and compliance teamsWorkers

Key points

  1. 1The government appoints Inspector-cum-Facilitators by notification, for a whole State, a set area, or specific establishments wherever they are located. §51
  2. 2An inspector may advise employers and workers on how to comply, and inspect the establishments assigned to them, subject to the government's instructions or guidelines. §51
  3. 3The government can notify an inspection scheme that allows web-based inspections and calling for information electronically, and can separately notify powers for inspectors to inspect on a randomised selection. §51
  4. 4An inspector can question anyone found on the premises whom they have reasonable cause to believe is a worker, ask for names and addresses, and search, seize or copy registers, wage records and notices relevant to an offence they have reason to believe the employer committed. §51
  5. 5Anyone required to produce documents or give information to an inspector is treated as legally bound to do so, within the meaning of sections 175 and 176 of the Indian Penal Code. §51
  6. 6The inspector is treated as a public servant, and searches and seizures follow the Code of Criminal Procedure, 1973, as far as possible, in the same way as a search under a section 94 warrant. §51
Earlier law:Payment of Wages Act, 1936Minimum Wages Act, 1948Payment of Bonus Act, 1965Equal Remuneration Act, 1976
51

Appointment of Inspector-cum-Facilitators and their powers

In plain words

The government appoints Inspector-cum-Facilitators, who are treated as public servants. They may advise employers and workers and inspect assigned establishments, including through web-based or randomly selected inspections where the government notifies this. They can question people reasonably believed to be workers, ask for names and addresses, search, seize or copy wage records linked to a suspected offence by the employer, flag defects or abuses no law covers, and use other powers set by rules. Anyone required to give documents or information is legally bound to, and searches follow Code of Criminal Procedure rules as far as possible.

(1)

The appropriate Government may, by notification, appoint Inspector-cum-Facilitators for the purposes of this Code who shall exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits assigned in relation to one or more establishments situated in such State or geographical limits or in one or more establishments, irrespective of geographical limits, assigned to him by the appropriate Government, as the case may be.

(2)

The appropriate Government may, by notification, lay down an inspection scheme which may also provide for generation of a web-based inspection and calling of information relating to the inspection under this Code electronically.

(3)

Without prejudice to the provisions of sub-section (2), the appropriate Government may, by notification, confer such jurisdiction of randomised selection of inspection for the purposes of this Code to the Inspector-cum-Facilitator as may be specified in such notification.

(4)

Every Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code.

(5)

The Inspector-cum-Facilitator may––

(a)

advice to employers and workers relating to compliance with the provisions of this Code;

(b)

inspect the establishments as assigned to him by the appropriate Government,

subject to the instructions or guidelines issued by the appropriate Government from time to time.

(6)

Subject to the provisions of sub-section (4), the Inspector-cum-Facilitator may,—

(a)

examine any person who is found in any premises of the establishment, whom the Inspector-cum-Facilitator has reasonable cause to believe, is a worker of the establishment;

(b)

require any person to give any information, which is in his power to give with respect to the names and addresses of the persons;

(c)

search, seize or take copies of such register, record of wages or notices or portions thereof as the Inspector-cum-Facilitator may consider relevant in respect of an offence under this Code and which the Inspector-cum-Facilitator has reason to believe has been committed by the employer;

(d)

bring to the notice of the appropriate Government defects or abuses not covered by any law for the time being in force; and

(e)

exercise such other powers as may be prescribed.

(7)

Any person required to produce any document or to give any information required by a Inspector-cum-Facilitator under sub-section (5) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code.

(8)

The provisions of the Code of Criminal Procedure, 1973 shall, so far as may be, apply to the search or seizure under sub-section (5) as they apply to the search or seizure made under the authority of a warrant issued under section 94 of the said Code.

Source: The Code on Wages, 2019, official gazette copy, page 23

Applying this at your workplace?

Ask the people who have done it for 50 years.

Chheda Consultants, Mumbai: PF, ESI, payroll and Labour Code compliance across India.