Amendment status not verified — confirm the current text below against the official source.
Realisation of compensation - (1) In case of contravention of the provisions of section 16 if a Magistrate is satisfied that the employee has not been paid his due wages, he shall direct the employer to pay the wages along with compensation not exceeding eight times the amount of wages withheld. (2) The amount of wages withheld and compensation payable under this section shall for the purpose of its recovery be deemed to be a fine imposed under section 26 and shall be realised as such. COMMENTARY Compensation awarded under Section 18 is not a penalty within the meaning of Section 26 of the Act: A sum awarded under this Section by way of compensation for the loss and in- convenience caused by the employer for not making payment to the employee on the due date. This amount is not by way of penalty within the meaning of Section 26 of the Act. Such a penalty can be imposed for contravention of Section 16 (4) of the Act, in addition to the award of compensation. [State of Punjab Vs. Y.K. Nanda 1965 PLR 210 (Pb.)].