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CHAPTER 6 PAYMENT OF WAGES ACT ,1936
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THE ACT APPLIES TO THE WHOLE OF INDIA
THIS ACT APPLIES TO ALL PERSON EMPLOYED IN FACTORY , INDUSTRY OR IN A RAILWAY WHETHER DIRECTLY OR INDIRECTLY. IT WAS LAST AMENDED IN 2005 CENTRAL GOVERNMENT IS RESPONSIBLE TO ENFORCE THE ACT IN RAILWAY , MINES, OILFIELD , OR AIR TRANSPORT SERVICE WHILE THE STATE GOVERNMENT TO ENFORCE IT IN FACTORIES AND OTHER INDUSTRIAL ESTABLISHMENT . TO SUBSTITUTE THE EXPRESSION “STATE GOVERNMENT” OR “CENTRAL GOVERNMENT” TO APPROPRIATE GOVERNMENT THE ACT APPLIES TO THE WHOLE OF INDIA
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THE main object of the act is to eliminate mal-
Practice by laying down the time and mode of Payment of wages and at regular intervals . Employed person and employer also includes the legal representative of deceased person. NOW, what does industrial or other establishment means ? Tramway service or motor transport service carrying passenger or goods . Dock waft or jetty Inland vessel Mine quarry or island
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Plantation Workshop in which article are produced in a view to sell or transport Establishment in which any work relating to the construction development or maintenance of building , roads , bridges or canals going on . Enterprise engaged in generating , transmitting and distributing electricity. Any establishment felt appropriate by the “APPROPRIATE GOVERNMENT” Air transport service but excludes such service belonging to the THE MILITARY NAVAL OR AIR FORCES OF THE UNION OR THE CIVIL AVIATION DEPARTMENT OF GOVERNMMENT OF INDIA WAGES : DONE IN MINIMUM WAGES ACT But does not include
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Bonus Value of house accommodation Any contribution paid by the employer towards pension fund and its interest there on Any travelling allowance Gratuity RESPONSIBILITY OF PAYMENT OF WAGES Every employer shall be responsible for the payment to person employed by him of all wages required to be paid under the act . But if the employer has nominated some other person to comply with the provision of the act , the person so named , the person responsible to the employer , the person so nominated or the person so designated shall be responsible for such payment . WAGE PERIOD : Employer should fix the wage period subject to maximum of 1 month
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TIME OF PAYMENT OF WAGES
It should be paid within 2 days when The employment of any person is terminated If the termination is due to closure of employment. It should be paid within 7 days The wages of every person employed in any railway factory or industry in which less than one thousand person are employed It should be paid within 10 days In any other railway factory or industrial or other establishment all payment of wages shall be made on a working day all payment shall be paid in current coin or currency notes. However if written authorization of employed person , pay him the wages either by cheque or by crediting the wages in his bank account.
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DEDUCTION FROM THE WAGES OF AN EMPLOYEE
Fines Absence from duty Damage to or loss of goods expressly entrusted to employee . Housing accommodation and amenities by the employer Recovery of loans Income tax Deduction of life insurance with consent to employee Advance from provident fund FINES No fine should be imposed on children below 15 years of age Total amount of fine which may be imposed in any 1 wage period shall not exceed an amount equal to 3% of wages
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Opportunity of show cause against the fine should be given and then only fine will be imposed. If in railways, then, a notice specifying the omission in prescribed manner. No fine without previous approval of State Government. No fine should be recovered in installment or at the expiry of 90 days. All fines should be recorded in register by the person responsible for wages. MAINTAINANCE OF REGISTER AND PRESERVATION OF REGISTER It should be preserved for 3 years after the date of last entry . It contains all the information about the employed person CLAIMS AND SET OFF (SECTION 15) Appropriate government may by notification in the official gazette appoint :
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Any commissioner for workmen compensation
Any officer of central government working as regional labour commissioner or assistant labour commissioner Any officer of state government not below the rank of assistant labour commissioner Any presiding officer of any labour court Any officer with experience of a judge of a civil court or a judicial magistrate PROCEDURE AND FINE Application should be filed within 12 months, an application may be admitted after the said period if applicant satisfies the authority that he had sufficient cause for delay OOBH is given to employer or other party Fine cannot exceed 10 times of the deduction in former case and not exceeding but not less than 1500
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Even if amount deducted or wages are paid before the disposal of applications , authority may direct compensation not exceeding 2000 Claims under the act should be disposed within 3 months from the date of application If the authority feels that the application was malicious , the authority may direct a fine not exceeding 375 to the employer or in any other case to the state government
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