S.O. 391/PWA/Section 7/Exp. II/1960, dated New Delhi, 10th February, 19611
In pursuance of Explanation II to sub-section (1) of Section 7 of the Payment of Wages Act, 1936 (4 of 1936), read with Section 24 of the said Act, and in supersession of the notification of the Government of India in the Ministry of Labour and Employment No. S.O. 517, dated the 15th April, 1958, the Central Government hereby specifies the requirements to which any rules framed by an employer in relation to his employees employed in Railways, mines and oilfields for the imposition of any of the following penalties shall conform, namely:
1. All such rules shall provide that
(1) The penalty of reduction to a lower post or time-scale or to a lower stage in a time-scale shall be imposed only after an inquiry, held as far as may be, in the manner hereinafter provided
(i) definite charges shall be framed and served, in writing on the person concerned who will be required to submit, within such time as may be specified, a written statement and also to state whether he desires to be heard in person;
(ii) for the purposes of preparation of his defence the person concerned shall be permitted to inspect and to take extracts from such records as he may specify, provided that such permission may be refused if, for reasons to be recorded in writing, such records are not relevant for the purpose;
(iii) the charges as are not admitted shall be inquired into;
(iv) the person concerned may present his case with the assistance of any other person approved by the inquiring authority;
(v) such documentary evidence, as may be necessary shall be considered, oral evidence as may be relevant or material shall be taken and cross-examination shall be permitted;
(vi) the report of the inquiry and the findings on each of the charges with reasons therefor shall be prepared;
(vii) the report of inquiry shall be considered and findings on each charge shall be recorded;
(viii) the person concerned shall be supplied with the report and the findings;
(ix) the person concerned shall be given a notice stating the action proposed to be taken and calling upon him to submit, within a specified time, such representation as he may wish to make against the proposed action;
(x) appropriate orders shall be passed and communicated to the person concerned in writing.
(2) The penalty of withholding of increment or promotion but excluding the penalty of stoppage of increment at an efficiency bar shall be imposed only after the person concerned has been informed in writing of the proposed action together with the allegations and given an opportunity to make any representation that he may wish to make.
(3) The person concerned is given a right of appeal against an order imposing any of the penalties mentioned in (1) and (2) above.
2. All such rules shall also specify the person or persons empowered to impose any of the penalties mentioned in clauses (1) and (2) of Paragraph 1 and the person or persons empowered to hear and dispose of an appeal under clause (3) of that paragraph.
1. Gaz. of India, Pt. II, S. 3(ii), dt. 18-2-1961, pp. 482-83.