Code on Wages, 2019 - Sections 64 and 65
Section 64: Protection Against Attachment of Employer Assets with Government; Section 65: Central Government Directions
Sections 64 and 65 of the Code on Wages, 2019 deal with two distinct matters. Section 64 protects specified money of an employer held by or due from the appropriate Government in connection with a Government contract, subject to an important employee-debt exception. Section 65 empowers the Central Government to give directions to State Governments for carrying the Code into execution.
Section 64 - Protection against attachments of assets of employer with Government
What Section 64 does: It creates a statutory protection against court attachment for certain amounts connected with a contract between an employer and the appropriate Government. The protection is not absolute. It does not prevent attachment where the debt or liability is owed by the employer to an employee employed in connection with that contract.
Text and effect of Section 64
Section 64 provides, in substance, that an amount deposited by an employer with the appropriate Government to secure due performance of a contract, and an amount due to that employer from the Government in respect of the contract, is protected from attachment under a decree or court order for the employer's other debts or liabilities. The express exception is a debt or liability incurred towards an employee employed in connection with that contract.
Meaning of "appropriate Government"
The expression "appropriate Government" is defined in Section 2 of the Code and determines whether the Central Government or the State Government is the relevant Government for a particular establishment or employment. The applicable limb of the definition should therefore be checked before relying on Section 64.
Practical scope of the protection
| Issue | Section 64 position |
|---|---|
| Security deposit with Government | Protected where it was deposited by the employer to secure due performance of the Government contract. |
| Money due from Government | Protected where it is due to the employer in respect of the Government contract. |
| Ordinary employer debt | The protected contract-related amounts are not liable to attachment under a decree or court order for such debt or liability. |
| Liability towards connected employee | The statutory protection does not extend to a debt or liability owed to an employee employed in connection with the contract. |
Important: Section 64 protects only the categories of money described in the provision. Whether a particular deposit, receivable, decree or liability falls within the section depends on the facts and the terms of the Government contract.
Section 65 - Power of Central Government to give directions
What Section 65 does: The Central Government may give directions to a State Government for carrying the provisions of the Code on Wages into execution in that State. The section further provides that the State Government shall abide by those directions.
Purpose of Section 65
The provision supports coordinated implementation of the Code across States. It is an implementation and administrative-direction power; it does not itself set a wage rate, create an attachment procedure, or replace the substantive rights and obligations contained elsewhere in the Code.
Commencement and current framework
The Central Government notified 21 November 2025 as the commencement date for Sections 43 to 66 of the Code, which includes Sections 64 and 65. Users should therefore read these provisions as operative provisions of the Code from that date.
The Ministry of Labour and Employment subsequently published draft Code on Wages (Central) Rules, 2025 on 30 December 2025. Because those rules were published as draft rules inviting objections and suggestions, their status should be checked before treating any draft provision as a final rule.
Official legal resources
For the authoritative statutory text and commencement notification, refer to the official Ministry of Labour and Employment materials: Code on Wages, 2019 - Gazette text, commencement notification dated 21 November 2025, and draft Code on Wages (Central) Rules, 2025.
Related provisions
Sections 64 and 65 appear near the concluding provisions of the Code. Readers may also refer to Section 63 - Exemption of employer from liability in certain cases and Sections 66 and 67 - Saving and rule-making power.
Updated: 16 September 2026. This page is a general legal information resource. For a dispute involving attachment, Government contracts, employee dues or execution proceedings, the statutory text, applicable rules, notifications and case-specific facts should be examined.