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Section 45 of the Code on Wages, 2019: Claims and Procedure

An application may be filed by the employee, a registered trade union of which the employee is a member, or the Inspector-cum-Facilitator (s.45(4)). The time limit is three years...

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Labour Laws
Published
October 1, 2026
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Oct 1, 2026
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Last updated: October 2026Verified against: Government sources

Section 45 is the Code's claims provision. The appropriate Government appoints an authority to hear and decide claims arising under the Code. The authority can add compensation of up to ten times the claim, tries to decide in three months, and, if the employer does not pay, issues a recovery certificate so that the amount is recovered as arrears of land revenue.

Sub-section (1): the authority

The appropriate Government "may, by notification, appoint one or more authorities, not below the rank of a Gazetted Officer, to hear and determine the claims which arises under the provisions of this Code" (the source text reads "arises"; this is a grammatical slip, not a substantive one). The Code does not say what the authority is called; it is whoever is notified. Employers and employees should check the notification of the appropriate Government for their establishment. For disputes at this stage, our legal dispute resolution service helps with appearance before the authority.

Sub-section (4) and (5): who can apply, and for how many

Who may apply (s.45(4))Condition
The employee concernedDirectly
A trade union registered under the Trade Unions Act, 1926The employee must be a member of it
The Inspector-cum-FacilitatorNo further condition in the text

Sub-section (5) allows "a single application" on behalf of, or in respect of, any number of employees employed in an establishment, subject to the rules. This matters for wage-delay claims affecting a whole shift or department.

Sub-section (6): three years, and late applications

An application "may be filed within a period of three years from the date on which claims referred to in sub-section (1) arises". The proviso lets the authority entertain an application after three years on "sufficient cause being shown by the applicant for such delay". The Code does not say from what point a claim "arises" in each case (for example, the date a wage fell due). Count from the date the particular amount became payable and keep the applicant's reasons for any delay on record.

Hypothetical example. A worker was underpaid Rs 4,000 in a month whose wages were due on 7 April 2026. Three years from that date run to 7 April 2029. If the worker applies on 20 June 2029, the application is out of time unless the authority accepts a showing of sufficient cause. The dates and figures are invented.

Sub-section (2): compensation up to ten times

While deciding, the authority "may order, having regard to the circumstances under which the claim arises, the payment of compensation in addition to the claim determined, which may extend to ten times of the claim determined". The same sub-section says "endeavour shall be made by the authority to decide the claim within a period of three months".

Three points:

  1. Compensation is discretionary ("may order") and depends on the circumstances.
  2. The ceiling is ten times the claim determined, not ten times the wage.
  3. The three-month period is an endeavour, not a hard limit. The text does not say what follows if it is overrun.

Worked figures (hypothetical). If the authority determines a claim of Rs 5,000, compensation can range from nil up to Rs 50,000 in addition to the Rs 5,000. The authority fixes the amount in the order. These numbers are only for arithmetic.

Sub-section (3): recovery

If the employer fails to pay "the claim determined and compensation ordered to be paid", the authority "shall issue a certificate of recovery to the Collector or District Magistrate of the district where the establishment is located who shall recover the same as arrears of land revenue and remit the same to the authority for payment to the concerned employee." Recovery is therefore through the district machinery, and the money passes back through the authority.

Sub-section (7): civil court powers

The authority, and the appellate authority under section 49, have all the powers of a civil court under the Code of Civil Procedure, 1908 for taking evidence, enforcing attendance of witnesses and compelling the production of documents. Each is also "deemed to be a civil court" for section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. From 1 July 2024 the 1973 Code was replaced by the Bharatiya Nagarik Suraksha Sanhita (BNSS); read the reference accordingly.

How this fits with other provisions

  • The burden of proving payment is on the employer in a wage or bonus claim; see sections 59 and 60.
  • Civil suits for such sums are barred in the situations listed in section 57.
  • Appeal from the authority's order under s.45(2) lies under s.49.

What the Central Rules add

The Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) apply only where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own wage rules apply.

Rule 49 allows a single application for a group of employees of the same establishment whose claims relate to the same wage period or an incident of discrimination, filed in Form II, manually or electronically, before the authority notified under s.45(1). The authority serves a notice in Form VIII by electronic means or speed post; if the employer fails to appear on the date, the authority may hear and determine the application ex parte; if the applicant fails to appear without reasonable cause shown in advance, the authority may dismiss it. Rule 48 says returns are filed electronically in the Forms under the Occupational Safety, Health and Working Conditions Code, 2020. See rules 48 and 49. The Rules text read adds no time limit or fee beyond what the Code states. For the corresponding old-law procedure, see our guides on claims under the Payment of Wages Act and claims under the Minimum Wages Act.

Need help with a wage claim?

Whether you are an employer served with a notice or an employee, union or auditor preparing one, early preparation counts: the pay records, the date the claim arose and the amount in dispute. Our legal dispute resolution team can prepare the case, attend hearings and advise on compensation exposure.

Key takeaways

  • The appropriate Government notifies the claims authority, not below a Gazetted Officer.
  • Employee, member-union or Inspector-cum-Facilitator can apply; one application can cover many employees.
  • Three years from the date the claim arises, with delay condoned for sufficient cause.
  • Compensation can go up to ten times the claim determined; the authority endeavours to decide in three months.
  • Non-payment leads to a recovery certificate and recovery as arrears of land revenue.

Read next

Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Section 45

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who can file a claim under the Code on Wages?

The employee, a registered trade union of which the employee is a member, or the Inspector-cum-Facilitator.

What is the time limit?

Three years from the date the claim arises; later applications can be entertained for sufficient cause.

Section 45: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The employee, a registered trade union of which the employee is a member, or the Inspector-cum-Facilitator.

Three years from the date the claim arises; later applications can be entertained for sufficient cause.

Up to ten times the claim determined, in addition to the claim, at the authority's discretion.

The text says "endeavour shall be made", so it is a target.

Through a certificate of recovery to the Collector or District Magistrate, as arrears of land revenue.

Yes, under s.45(5); Central Rule 49 requires the claims to relate to the same wage period or an incident of discrimination.