payment of wage act

8/7/2019 Payment of Wage Act

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Payment of wages act,1936


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y The payment of wages act,1936 was passed to regulate thepayment of wages to certain classes of person employed inindustry. It is essential meant for the benefit of industrialemployees not getting veryhighwages and the provision ofthe act were enacted to safeguard their interest.

y It insure payment of wages in a particular form and atregular intervals without unauthorized deductions.

y It also provide against irregularities in payment of wagesand unauthorized deduction therefore by the employers.


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y It applies to the person employed in the factoriesand to persons employed industrial or otherestablishment.

y This act is applies to the employees whose wages

up to Rs. 1600 per month

or more.


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y The act extends to the whole of India . It wasextended to Jammu & Kashmir by the centerlabour laws act (extension to Jammu & Kashmir )

act 1970.

y It applies to the person employed in the factoriesand to persons employed industrial and to

persons employed upon any railwaysadministration or following establishments.


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1. Motor transport service engaged in carryingpassengers or goods,

2. Dock, wharf or jetty ,

3. Inland vessel, mechanically propelled,

4. Mine , oil fields,


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5. Workshop or other establishment in which articlesare produced or manufactured with a view to theiruse, transport or sale,

6. Establishment in which any work relating to theconstruction development or maintenance of building, road, bridges, or relating to operations

connected with navigations, irrigations or othersupply to water,


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1. In factories, if a person has been named as managerof the factory.

2. In industrial or other establishments, if there is a

person responsible to the employer for thesupervision and control of the industrial or otherestablishment .

3. In railway, if the employer is the railway

administration and the railway administration hasnominated a person in this behalf for the local areaconnected.


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The person responsible for payment of wages is to fix

wage period in respect of whichwages shall be

payable.

The wage period shall not be exceed one month. In

other words , payment of wages can be made daily,

weekly, fortnightly and monthly.


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The wage of every person employed upon in any

railway, factory or industrial or other establishment

shall be paid before the expiry of :

y If the person employed in a factory, an industrial

establishment or railway including daily rated workers

is less than one thousand, wages have to be paid beforethe expiry of the seventh day after the last day of the

wage period.


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y In other cases the payment has to be made before the

expiry of the tenth day after the last day of the wage

period.

y In case of persons employed on dock, wharf or in a

mine , the balance of wages found due on completion

of the final account of the slip loaded or unloaded , asthe case may be shall be paid before the expiry of the

seventh day from the day of such completion.


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y In the case of termination of employment of any

person by the employer , the wage earned byhim, shall

be paid before the expiry of the second working day

from thedayonwhich his employment is terminated.

y In the case of termination of employment of any

person by the employer , the wage earned byhim, shall

be paid before the expiry of the second working day

from thedayonwhich his employment is terminated.


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y All payment of wages to be made on a working day.


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The act allows the following deductions :

1. Fines,

2. Deduction for the actual period of absence,3. Deduction for damage or loss of goods expressly

entrusted to the employed person for custody ,

4. Deduction for house accommodation,

5. Deduction for recovery of advances and interest andfor adjustment of over payment of wages,

6. Deduction for income tax,


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y 7. Deduction for subscription and repayment of advance from any provident fund,

8. Deduction made on written authorization of the

employed person, for contribution to primeminister's national relief fund,

9. Deduction on written authorization of theemployed person for payment of fees for

membership of trade union,10. Deduction on orders of a court or other authority,


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11. Deduction for amenities supplied and authorized bygovernment,

12. Deduction for recovery of loan for house building orany other purposes approved by government,

13. Deduction on written authorization by the employeefor contribution to any fund constituted by theemployer or trade union for welfare of employedpersons with the approved by the state government.

14. Deduction on written authorization of the employedperson for payment of fees for membership of tradeunion.


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y Section 15 empowers the state government to appointsome person as the authority to hear and decide forany specified area all claims arising out of:


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A. Against a direction of the authority under section15(3), for refund of amount wrongfully deducted.

B. Against a direction of the authority for payment ofthe delayed wages section 15(2)

C. Against order of the authority imposing a penaltyunder section 15(4).

D. Against the direction of the authority for payment ofcompensation under section15(3).


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a. Employed person himself.

b. Any legal practitioner.

c. Any official of registered trade union authority inwriting to action behalf of the employed person.

d. any other person acting with the permission of theauthority appointed under section15(1) of the act.


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The employer is required to maintain the followingregister in the prescribed forms:

1. Register of fines,

2. Register of advanced made to employed person,

3.Register of deduction for damage or loss causedthrough neglect or default,


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I. Particulars of persons employed,

II. The work performed by the persons employed,

III. The wages paid to the persons employed,

IV. The deduction made from the wages of the personemployed,

The employer has to the preserve the above records for aperiod of three years and make them available to theinspector for inspection for when required to do so.


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y It is a center legislation, but it is administered by state

governments except in the case of railways , mines , oil-

fields and central air transport service, wh

ere it is enforcedby the central governments. Both the central and state

government are empowered to appoint inspectors under

the act to ensure its enforcement and make rules for

carrying out the purposes of the act.


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y 1.Penalty for delaying payment of wages or makingunauthorized deduction from wages,

Punishable with the fine which shall not be less thanRs. 200 but which may extend to Rs. 1000.

y 2.Penalty for not paying wages on a working day

He shall be punishable with a fine which may extendto Rs. 500.


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y 3.Penalty for failure to maintain and furnish records

Every register and record required to be maintained

under this section shall be preserved by the employerfor a period for three years after the date of last entrymade therein.

y 4.Penalty for obstructing etc. inspector

Punishable with fine which shall not be less than Rs.200 but which may extend to Rs. 1000.


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y If any person who has been convicted of any offence

punishable under the act is again guilty of an offence

involving contravention of th

e same provision,h

e sh

allbe punishable on a subsequent conviction with

imprisonment for a term which shall not be less than 1

month

but wh

ich

may extend to 3 month

, or with

finewhich shall not be less than Rs. 500 but which may

extend to Rs. 3000 or with both.


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The end

payment of wage act

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