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Labour Laws and Practice · Law of Wages

Claims, Inspector-cum-Facilitator and Appeals under the Code on Wages

Updated 11 October 2026 · Fact-checked

Under the Code on Wages, 2019, a notified authority (Gazetted Officer or above) decides wage claims under Section 45. The Inspector-cum-Facilitator advises and inspects under Section 51. A claim is filed within three years, and an appeal against the authority's order lies within ninety days to the appellate authority under Section 49.

Understand Authorities, Claims, Inspector-cum-Facilitator and Appeals

A wage right means little without a forum to enforce it. The Code on Wages, 2019 gives you three layers: an authority that decides claims, an appellate authority that hears appeals, and an Inspector-cum-Facilitator who advises and inspects.

The claims authority is appointed by the appropriate Government by notification. It must be not below the rank of a Gazetted Officer. It hears and decides claims that arise under the Code, such as unpaid or delayed wages. It has the powers of a civil court for taking evidence, enforcing attendance of witnesses and compelling production of documents (Section 45(7)).

The Inspector-cum-Facilitator is a changed role. The old Inspector mainly policed. This officer first advises employers and workers on compliance, and also inspects the establishments assigned. He is deemed a public servant. Inspection may follow a notified scheme, including web-based and randomised inspection (Section 51).

If the authority finds for the employee, it can add compensation up to ten times the claim determined. If the employer does not pay, the authority sends a recovery certificate to the Collector or District Magistrate, who recovers it as arrears of land revenue. A person aggrieved by the order can appeal within ninety days.

Offences are different from claims. A court can take cognizance of an offence only on a complaint by the specified persons (Section 52). Keep the claim route and the prosecution route separate in your answers.

Key rules to remember

Claims authority (S.45(1))
Appointed by appropriate Government by notification; rank not below Gazetted Officer
One or more authorities may be appointed.
Compensation (S.45(2))
Compensation may extend to 10 × claim determined, in addition to the claim
It is discretionary ('may'). The authority should endeavour to decide the claim within three months.
Who may apply (S.45(4))
Employee concerned OR registered Trade Union of which the employee is a member OR Inspector-cum-Facilitator
The union must be registered under the Trade Unions Act, 1926, and the employee must be its member.
Single application (S.45(5))
One application for any number of employees of an establishment, subject to rules
Saves multiple filings for a common default.
Limitation for claim (S.45(6))
3 years from the date the claim arises; later on sufficient cause
The authority may entertain a late application if sufficient cause is shown.
Recovery (S.45(3))
Certificate of recovery to Collector/District Magistrate; recovered as arrears of land revenue
Amount is remitted to the authority for payment to the employee.
Appeal (S.49)
Within 90 days of the order; later on sufficient cause; endeavour to dispose within 3 months
Appellate authority is at least one rank higher than the claims authority.
Cognizance of offences (S.52)
Complaint by or under authority of Government or authorised officer, or by employee, registered Trade Union or Inspector-cum-Facilitator; trial not below Metropolitan Magistrate or Judicial Magistrate of first class
Applies to offences, not wage claims.

How to solve Authorities, Claims, Inspector-cum-Facilitator and Appeals questions

Use this order for any problem on claims, inspections or appeals under the Code on Wages.

  1. 1Identify the forum question: is it a wage claim (Section 45), an inspection issue (Section 51), an appeal (Section 49) or an offence (Section 52)?
  2. 2Check who is filing. Is it the employee, a registered union of which the employee is a member, or the Inspector-cum-Facilitator?
  3. 3Compute the time limit from the date the claim arose: three years for the claim, and ninety days from the order for an appeal. Note the proviso for sufficient cause.
  4. 4Work out the relief: claim determined plus compensation up to ten times, if the circumstances justify it.
  5. 5Apply the recovery step: certificate to the Collector or District Magistrate, recovered as arrears of land revenue.
  6. 6Check the appeal path: aggrieved person, appellate authority, ninety days, one rank higher officer.
  7. 7Write the conclusion in plain words and add one practical point, such as maintaining registers, wage slips and notices under Section 50.

Quickest way: Forum, Filer, Time, Relief

When to use it: Use it for short case-based questions where you must name the correct forum and limitation quickly.

  1. Forum: claim goes to the Section 45 authority; appeal goes to the Section 49 authority.
  2. Filer: employee, registered union (member) or Inspector-cum-Facilitator.
  3. Time: 3 years for the claim; 90 days for the appeal; both extendable for sufficient cause.
  4. Relief: claim plus compensation up to 10 times; recovery through the Collector as land revenue.
  5. Offence: complaint under Section 52, not an application under Section 45.

Common mistakes in Authorities, Claims, Inspector-cum-Facilitator and Appeals

  • Saying the compensation is always ten times the claim.

    Students remember the number and drop the words 'may extend to'.

    Fix: Write 'up to ten times the claim determined', awarded at the authority's discretion having regard to the circumstances.

  • Confusing the three-year claim period with the ninety-day appeal period.

    Both are limitation periods and both have a sufficient cause proviso.

    Fix: Tie three years to the date the claim arises and ninety days to the date of the order.

  • Allowing any trade union to file the claim.

    Students ignore the conditions in Section 45(4)(b).

    Fix: State that the union must be registered under the Trade Unions Act, 1926 and the employee must be its member.

  • Treating the Inspector-cum-Facilitator only as an enforcer.

    Carry-over from the old Inspector under earlier wage laws.

    Fix: Mention the advisory role first (Section 51(5)(a)), then inspection, search and seizure of records.

  • Saying that the appeal goes to a court.

    Students assume appeals always lie to civil courts.

    Fix: Under Section 49 the appeal goes to an appellate authority appointed by notification, an officer at least one rank higher.

  • Mixing up claims and prosecution.

    Both arise from non-payment of wages.

    Fix: A claim is decided by the Section 45 authority. An offence is tried by a court on a complaint under Section 52.

Worked examples

Example 1

Anand Textiles Ltd. did not pay wages to 40 workers for March. The workers' registered union, of which all 40 are members, files one application before the claims authority eight months later. The employer objects that one application cannot cover 40 employees and that the claim is late. Advise.

Show the solution
  1. Provision: Section 45(4)(b) allows a registered trade union of which the employee is a member to apply. Section 45(5) allows a single application for any number of employees of an establishment, subject to rules.
  2. Limitation: Section 45(6) allows three years from the date the claim arises. Eight months is well within it, so no condonation is needed.
  3. Analysis: the union is registered and all 40 are members, so it qualifies as filer. Both objections fail.
  4. Relief: the authority may order the claim plus compensation up to ten times the claim determined, having regard to the circumstances.

Answer: Both objections fail. The union may file a single application for all 40 workers, and the application is within three years. The authority may award the unpaid wages and compensation up to ten times the claim determined.

Example 2

The claims authority orders Rao Engineering Pvt. Ltd. to pay a claim and compensation. The employer receives the order on 1 July and wants to challenge it on 15 October of the same year. It does not pay in the meantime. Discuss the remedies and consequences.

Show the solution
  1. Provision: Section 49(1) gives ninety days from the date of the order to appeal to the appellate authority.
  2. Computation: 1 July to 15 October is 106 days (30 days left in July after 1 July, 31 in August, 30 in September, 15 in October). This is more than ninety days.
  3. Analysis: the appeal is late. The proviso allows the appellate authority to entertain it if the delay was due to sufficient cause.
  4. Consequence of non-payment: under Section 45(3) the authority may issue a recovery certificate to the Collector or District Magistrate, who recovers the sum as arrears of land revenue.
  5. Appellate side: the appellate authority is an officer at least one rank higher and should endeavour to dispose of the appeal within three months.

Answer: The appeal is 106 days after the order, so it is out of time and survives only if the employer shows sufficient cause for delay. Until then, the authority can send a recovery certificate and the Collector can recover the amount as arrears of land revenue.

Exam tips

  • Write the section number with each rule: 45 for claims, 49 for appeals, 51 for the Inspector-cum-Facilitator, 52 for cognizance.
  • In case questions, count the days carefully for the ninety-day appeal and compare with the three-year claim period.
  • Always state the sufficient cause proviso when a period is exceeded.
  • Add one drafting or compliance point, such as a claim application listing employee names, wage periods and amounts, or the Section 50 records.

Practice questions from Law of Wages

Authorities, Claims, Inspector-cum-Facilitator and Appeals in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Authorities, Claims, Inspector-cum-Facilitator and Appeals: frequently asked questions

Who can file a wage claim under the Code on Wages, 2019?

The employee concerned, a registered trade union of which the employee is a member, or the Inspector-cum-Facilitator can file under Section 45(4). A single application can cover any number of employees of an establishment, subject to rules.

What is the time limit for filing a claim?

Three years from the date on which the claim arises. The authority may entertain a later application if the applicant shows sufficient cause for the delay.

What is the time limit for an appeal under Section 49?

An aggrieved person must appeal to the appellate authority within ninety days from the date of the order. A late appeal can be entertained if the delay was due to sufficient cause.

What are the main powers of the Inspector-cum-Facilitator?

The officer advises employers and workers on compliance and inspects assigned establishments. He may examine persons believed to be workers, require information on names and addresses, and search, seize or copy relevant registers and records where an offence is believed to have been committed.