Payment Of Wages Act, 1936 By- Ajay Rathee Guidance By- Ms. ਸੁਮੰਜੀਤ ਕੌਰ

INDUSTRIAL LAW

Requirement

eer eePayment

of wagesBy To

ProblemsSolutions in the Act

1) Untimely payment2) Penalty/Fines- unjustified3) Non-Uniformity in amount

of wages

1) Timely payment of wages and uniformity.

2) Deduction to be allowed are specified

Why this Act ?

•Every Factory.

•Railway Administration.

•Any industrial or other establishment.(explained later).

•Any other establishment by giving notification of at least 3 months in official gazette.

APPLICABILITY

•Where salary of a particular wage period is less then 18,000.

Which can be revised by NSSO

(Last in 2012)

With 5

Year

According to consumer

expenditure Level

1) Tramway Or Carrying Motor Transport services 2) Air Transport Services Not- (For Defense Decided by Central Govt.)

3) Dock Wharf (“Bandergaah”).

4) Inland Vessels (water ways Areas).

Any Industrial Or Other Est.

Psngr.GoodsBoth

ArmyNavyAir

force

4) Mines/Quarrying/Oilfield5) Plantation6) Building

7) Water Supply

8) Electricity

9) Workshop- Manufacturing, production, adoption(conversion)

10) Any other Establishment (As Notified by Central Govt. with Regards to its

Nature)

ConstructionDevelopment

GenerationTransmissionDistribution

Responsibility CASE RESPONSIBLE

PERSONFactories Manager

(As per Factories Act 1948)

Railway Admns. Person appointed in local area concerned.

Industrial or other est. The person in whose supervision & control the payment of wages given.

Contractor Person appointed by contractor.

In other cases Person designated for the purpose.

Before the Expiry of 7th Day(Railway + Factory + Industrial Or other Est.) {< 1000 Emp.}

Dock + wharf/Jetty/Mine.

Before the Expiry of 10th Day(Railway + Factory + Industrial Or other Est.)

Payment Day- Must be a Working Day.

Medium- In Current Coin or Currency Notes Or In Both. In Cheque + Bank A/c - After obtaining written authorization of

the employed person.

TIME OF PAYMENT

In Case Of Termination

*Closer - Other than weekly or other Recognized Holiday.

By or On Behalf of Employer

Due to Closer of Est. for Any Reason

Before the Expiry of 2nd working Day

Before the Expiry of 2nd Day

For Person Responsible For Payment

Appropriate Govt.

By General or Special Order

Exempt For Above Said Provisions

In Certain Cases Specified under the Act

EXEMPTION

1) Appropriate Govt.

Central Govt. State Govt.(Railway, Mines, Oil Field ) (In all other

cases) Air Transport Services)

IMP. DEFINITIONS

2) Employed Person Employed in Establishment specified under the

Act. Includes Representative of Deceased Employed.

3) Employer Person Responsible for Payment of wages. Includes Legal Rep. of deceased employer.

4) Factory (Any Premises) whereon 10 or More workers working (+ Aid Of Power) whereon 20 or More workers are working (- Aid Of Power)

(-) Excluding- Mines under Mines Act 1952.

Mobile Units of Armed Forces.

Railway Running Premises or Establishment.

5) WAGES Wages = All Remuneration + Salary + Allowances (HRA+ DA Etc.)

For work done as per terms of contract.

Fixation Of Wage- Periods Fixed by Person Responsible for Payment of wages.

Max. Wage Period 1 Month

Remuneration ForOvertime, Leave, Holidays.Payable by order of court.For settlement b/w the Parties.Sum payable under any scheme for time being.(Under any Act)Sum payable on termination.(under Law, Contract & Instrument)For Any Reward. (under the terms of employment- Bonus etc. or other Name)

‘WAGES’ INCLUDES

1) Bonus - Not Payable - In Terms of employment, under any Reward or Settlement b/w

the parties, by order of Court.

2) Amenities or services Excluded from wage terms (By order of court)

3) Employer Contribution {To Pension + PF + Interest on PF}

4) Travelling Allowances & Concession

5) Gratuity Payable On Termination Other than – Any Law + Contract + instrument

DOES NOT INCLUDES

Payment of Wages After Deducting Authorized Deductions only.

Deductions Payment Made By *For the purpose of this Act

Not Deemed to a Deduction (Conditions)a) Withholding of Increment / Promotion.b) Reduction to – Lower post / Time Scale / Lower Stage.c) Suspension

DEDUCTIONS

ee ee’r

1) Deduction For Fines Notice for Fines Approved Acts & omissions specified, exhibited in prescribed

manner in employment premises.

Given a Opportunity of showing cause against fine.

Max. Limit - 3% of wages payable.

Min. Age - 15 Years.

Recovery of Fine – Under 90 Days ( In Installment )

Use of Fines - For purpose beneficial to person employed in Factory or Est.

AUTH. DEDUCTIONS

Permissible Deduction For employed person remains Absent From Duty.

Absent From Duty

ABSENCE FROM DUTY

From Workplace Present, But

refuses to work

Amount Of Deduction

Individual Absenteeism

Collective Absenteeism10 or more

In same proportion from period of absence to

total wage periodMax. - 8 Days of Wages

For Damages or Loss (Goods + Money ) *That must arise out of employee Negligence. Deduction – Equal to Amount of loss caused to employer.

For Services Rendered *Services - House Accommodation + Amenities or Services

provided by employer (-) Supply of tools and raw material req. for employment.

Provisions a) Must be accepted by employed person.b) Deduction – equal to value of services.c) Further as Appropriate Govt. may impose.

For Recovery of Advances

For Recovery of loans Extent + Interest rate As per rules of State Govt.

Advance before Emp.

Advance after Emp.

Advance of wage not earned

From 1st payment of

wagesAs per Appr.

Govt.As per Appr.

Govt.(Extent +

installments)

For Payment to co-operative societies & Insurance Schemes

Conditions as per State Govt. Impose.

Others Income Tax + order by court + contribution to fund and

insurance schemes as specified by central govt.

Limit• Payment to co-operative Societies (wholly or partly) < = 75% of wages• others – 50% of wages

INSPECTORS. AUTHORITY TO HEAR CLAIMS. Any commissioner for Workmen’s Compensation; or Any Regional / Assistant Labor Commissioner. Presiding Officer of any Labor Court or Industrial Tribunal. Order directing the employer- Refund the deductions To pay the delayed wages Directing payment of compensation Order imposing penalty whether on the ee Or ee’r An Appeal can be made within thirty days before the District Court.(

If unsatisfied).

Penalties- Punishable (ee’r) with fine 1,500 - 7,500 Rupees.

AUTHORITIES

Ms. ਸੁਮੰਜੀਤ ਕੌਰ