payment of wages act, 1936 i

7/29/2019 Payment of Wages Act, 1936 i

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PAYMENT OF WAGES ACT,

1936[ACT NO. 4 OF YEAR 1936]

By Group # 6


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SEC. 1SHORT TITLE AND APPLICATION

It is applicable to the whole of India.

It applies in the first instance to the payment ofwages to persons employed in any factory, to

persons employed (otherwise than in a factory) uponany railway by a railway administration or, eitherdirectly or through a subcontractor, by a personfulfilling a contract with a railway administration, andto persons employed in an industrial or otherestablishment specified.

The state Government may apply the provisions ofthis act to the persons employed in any Industrial orother establishment by giving a 3 months notice.


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SHORT TITLE AND APPLICATION In case of Industrial establishment owned by

central government, with objectives not confined

to one state, such notification can be issued in

consultation with the Central Government.

In various shops, this Act has been extended to

shops and establishments also.


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DEFINITIONS In this Act, unless there is anything repugnant in

the subject or context,-

(i) "employed person" includes the legalrepresentative of a deceased employed person;

i(a) "employer" includes the legal representativeof a deceased employer;

i(b) "factory" means a factory as defined inclause (m) of section 2 of the Factories Act,1948 (63 of 1948) and includes any place towhich the provisions of that Act have beenapplied under sub-section (1) of section 85thereof


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NON APPLICABILITY

SEC. 1(6) OF THE PAYMENT OF WAGES ACT,

1936According to Sec. 1(6) of the Payment of

Wages Act, 1936 as this act is meant for the

benefit of Industrial employees not getting

high wages, therefore this Act does not applyto persons whose wages exceed Rs. 1600

per month.

This act does not make any distinctionbetween employees with reference to nature

of work carried on by them.


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WAGES

According to Sec. 2(vi) wages can be

defined as, Wagesmeans all

remuneration (whether by way of salary,

allowance or otherwise) expressed in

terms of money or capable of being doexpressed which would if the terms of

employment, express or implied were

fulfilled be payable to a person employedin respect of his employment or of work

done in such employment.


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FIXATION OF WAGE-PERIODS

(SEC. 4 & 5).

(1) Every person responsible for the payment

of wages under section 3 shall fix periods

(in this Act referred to as wage periods) in

respect of which such wages shall bepayable.

(2) No wage period shall exceed one month.


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MODE OF PAYMENT OF WAGES (SEC. 6)

All wages shall be paid in current coin or

currency notes or in both:

Provided that the employer may, after

obtaining the written authorization of the

employed person, pay him the wages either

by cheque or by crediting the wages in his

bank account


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FROM WAGES(SEC. 7)

Wages of an employed person shall be paid to him without

deductions of any kind except those authorized by or

under this Act.

Every payment made by the employed person to the

employer or his agent shall, for the purposes of this Act,

be deemed to be a deduction from wages.


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CONTINUED

Any loss of wages resulting from the imposition, for good and

sufficient cause, upon a person employed of any of the followingpenalties, namely:-

(i) the withholding of increment or promotion (including thestoppage of increment at an efficiency bar);

(ii) the reduction to a lower post or time scale or to a lower stagein a time scale; or

(iii) suspension: shall not be deemed to be a deduction from

wages in any case where the rules framed by the employer for theimposition of any such penalty are in conformity with therequirements, if any, which may be specified in this behalf of theState Government by notification in the Official Gazette.


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CONTINUED(2) Deductions from the wages of an employed person shall be

made only in accordance with the provisions of this Act, and

may be of the following kinds only, namely:-

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly

entrusted to the employed person or custody; or for loss of

money for which he is required to account, where such

damage or loss is directly attributable to his neglect or

default;


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CONTINUED(d) deductions for house-accommodation supplied by the

employer or by Government or any housing board set up

under any law for the time being in force (whether the

Government or the board is the employer or not) or any

other authority engaged in the business of subsidizinghouse-accommodation which may be specified in this behalf

by the State Government by notification in the Official

Gazette.

(e) deductions for such amenities and services supplied by

the employer as the State Government or any officer

specified by it in this behalf] may, by general or special

order, authorize;


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DEDUCTIONS FOR DAMAGE OR LOSS (1) A deduction under clause (c) or clause (o) of sub-section (2) of

section 7 shall not exceed the amount of the damage or loss causedto the employer by the neglect or default of the employed person.

(1A) A deduction shall not be made under clause (c) or clause (m) orclause (n) or clause (o) of sub-section (2) of section 7 until theemployed person has been given an opportunity of showing causeagainst the deduction or otherwise than in accordance with suchprocedure as may be prescribed for the making of such deduction.

(2) All such deduction and all realizations thereof shall be recorded ina register to be kept by the person responsible for the payment ofwages under section 3 in such form as may be prescribed.


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DEDUCTIONS FOR SERVICESRENDERED A deduction under clause (d) or clause (e) of

sub-section (2) of section 7 shall not be madefrom the wages of an employed person, unlessthe house-accommodation amenity or service

has been accepted by him, as a term ofemployment or otherwise, and such deductionshall not exceed an amount equivalent to thevalue of the house-accommodation amenity orservice supplied and, in the case of deduction

under the said clause (e), shall be subject tosuch conditions as the State Government mayimpose.


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DEDUCTIONS FOR RECOVERY OFADVANCES Deductions under clause (f) of sub-section (2) of section

7 shall be subject to the following conditions, namely:

(a) recovery of an advance of money given beforeemployment began shall be made from the first paymentof wages in respect of a complete wage-period, but norecovery shall be made of such advances given fortraveling-expenses;

(aa) recovery of an advance of money given afteremployment began shall be subject to such conditionsas the State Government may impose;

(b) recovery of advances of wages not already earnedshall be subject to any rules made by the StateGovernment regulating the extent to which suchadvances may be given and the installments by whichthey may be recovered.


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DEDUCTIONS FOR RECOVERY OFLOANSDeductions for recovery of loans granted

under clause of sub-section (2) of section7 shall be subject to any rules made bythe State Government regulating theextent to which such loans may be

granted and the rate of interest payablethereon.


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DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE SOCIETIES AND INSURANCESCHEMES Deductions under clause (j) and clause (k) of

sub-section (2) of section 7 shall be subject to

such conditions as the State Government may

impose.


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PENALTY FOR OFFENCES UNDERTHE ACT (1) Whoever being responsible for the payment of wages

to an employed person contravenes any of the

provisions of any of the following sections, namely,

section 5 except sub-section (4) thereof, section 7,

section 8 except sub-section (8) thereof, section 9,section 10 except sub-section (2) thereof, and section 11

to 13, both inclusive, shall be punishable with fine [which

shall not be less than two hundred rupees but which may

extend to one thousand rupees.

(2) Whoever contravenes the provisions of section 4,

[sub-section (4) of section 5, section 6, sub-section (8) of

section 8, sub-section (2) of section 10] or section 25

shall be punishable with fine which may extend to five

hundred rupees.


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PENALTY FOR OFFENCES UNDER THEACT (3) Whoever being required under this Act to maintain

any records or registers or to furnish any information orreturn-

(a) fails to maintain such register or record; or

(b) willfully refuses or without lawful excuse neglects to

furnish such information or return; or

(c) willfully furnishes or causes to be furnished any

information or return which he knows to be false; or

(d) refuses to answer or willfully gives a false answer to any

question necessary for obtaining any information

required to be furnished under this Act, shall, for each

such offence, be punishable with fine which shall not be

less than two hundred rupees but which may extend to

one thousand rupees.


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PENALTY FOR OFFENCES UNDER THE ACT (4) Whoever:

(a) willfully obstructs an Inspector in the discharge of his dutiesunder this Act; or

(b) refuses or willfully neglects to afford an Inspector any

reasonable facility for making any entry, inspection,

examination, supervision, or inquiry authorized by or under

this Act in relation to any railway, factory or

(c) willfully refuses to produce on the demand of an Inspector

any register or other document kept in pursuance of this Act;

or

(d) prevents or attempts to prevent or does anything which hehas any reason to believe is likely to prevent any person from

appearing before or being examined by an Inspector acting in

pursuance of his duties under this Act; shall be punishable

with fine which shall not be less than two hundred rupees but

which may extend to one thousand rupees.


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PENALTY FOR OFFENCES UNDER THE ACT (5) If any person who has been convicted of any offence punishable

under this Act is again guilty of an offence involving contravention of

the same provision, he shall be punishable on a subsequent

conviction with imprisonment for a term which shall not be less than

one month but which may extend to six months and with fine which

shall not be less than five hundred rupees but which may extend to

three thousand rupees:

PROVIDED that for the purpose of this sub-section no cognizance shall

be taken of any conviction made more than two years before the

date on which the commission of the offence which is being

punished came to the knowledge of the Inspector.

(6) If any person fails or willfully neglects to pay the wages of any

employed person by the date fixed by the authority in this behalf, he

shall, without prejudice to any other action that may be taken against

him, be punishable with an additional fine which may extend to one

hundred rupees for each day for which such failure or neglect

continues.


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MAINTENANCE OF REGISTERS AND

RECORDS

(1) Every employer shall maintain such registers andrecords giving such particulars of personsemployed. by him, the work performed by them, thewages paid to them, the deductions made from theirwages, the receipts given by them and such otherparticulars and in such form as may be prescribed.

(2) Every register and record required to bemaintained under this section shall, for the purposesof this Act, be preserved for a period of three yearsafter the date of the last entry made therein.


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CLAIMS ARISING OUT OF DEDUCTIONS FROM WAGES

OR DELAY IN PAYMENT OF WAGES AND PENALTY FOR

MALICIOUS OR VEXATIOUS CLAIMS

The State Government may, by notification in the OfficialGazette, appoint a presiding officer of any Labour Courtor Industrial Tribunal, constituted under the IndustrialDisputes Act, 1947 or under any corresponding law

relating to the investigation and settlement of industrialdisputes in force in the State

Any Commissioner for Workmen's Compensation orother officer with experience as a judge of a Civil Courtor as a stipendiary Magistrate to be the authority to hearand decide for any specified area all claims arising out ofdeductions from the wages, or delay in payment of thewages, of persons employed or paid in that area,including all matters incidental to such claims:


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CONTINUED Provided that where the State Government considers it necessary

so to do, it ,may appoint more than one authority for any specifiedarea and may, by general or special order, provide for thedistribution or allocation of work to be performed by them under thisAct.

When any application is entertained, the authority shall hear theapplicant and the employer or other person responsible for thepayment of wages, or give them an opportunity of being heard, and,

after such further inquiry (if any) as may be necessary, may, withoutprejudice to any other penalty to which such employer or otherperson is liable under this Act, direct the refund to the employedperson of the amount deducted, or the payment of the delayedwages, together with the payment of such compensation as theauthority may think fit, not exceeding ten times the amount deductedin the former case and not exceeding twenty-five rupees in the latter,and even if the amount deducted or the delayed wages are paidbefore the disposal of the application, direct the payment of suchcompensation, as the authority may think fit, not exceeding twenty-five rupees:


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CONTINUED

No direction for the payment of compensation shall bemade in the case of delayed wages if the authority issatisfied that the delay was due to:

(a) a bona fide error or bona fide dispute as to the amount

payable to the employed person, or(b) the occurrence of an emergency, or the existence of

exceptional circumstances, such that the personresponsible for the payment of the wages was unable,though exercising reasonable diligence, to makeprompt payment, or

(c) the failure of the employed person to apply for or acceptpayment.


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CONTINUED

(4) If the authority hearing an application under this section

is satisfied

(a) that the application was either malicious or vexatious,the authority may direct that a penalty not exceeding fifty

rupees be paid to the employer or other personresponsible for the payment of wages by the personpresenting the application; or

(b) that in any case in which compensation is directed to be

paid, the applicant ought not to have been compelled toseek redress under this section, the authority may directthat a penalty not exceeding fifty rupees be paid to theState Government by the employer or other personresponsible for the payment of wages.


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CONTINUED

(5) Any amount directed to be paid under thissection may be recovered:

(a) if the authority is a Magistrate, by the authority

as if it were a fine imposed by him asMagistrate, and

(b) if the authority is not a Magistrate, by anyMagistrate to whom the authority makesapplication in this behalf, as if it were a fineimposed by such Magistrate.


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DISPLAY BY NOTICE OFABSTRACTS OF THE ACT The person responsible for the payment of

wages to persons; employed in a factory oran industrial or other establishment shall

cause to be displayed in such factory orindustrial or other establishment a noticecontaining such abstracts of this Act and ofthe rules made there under in English and in

the language of the majority of the personsemployed in the factory, or industrial or otherestablishment, as may be prescribed.


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REGISTERS SHOULD BE MAINTAINEDREGARDING

Work performed by employee.

Wages paid to them.

Deductions from their wages.

Receipts given by them. (According toSec. 13-A).


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PAYMENT OF WAGES (AMENDMENT)ACT 2005

payment of wages act, 1936 i

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