Ir Ppt Payment of Wages 1936

7/27/2019 Ir Ppt Payment of Wages 1936

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This Act may be called the Payment of Wages Act 1936.

It extends to the whole of India.

The Act came into force on the 28 March 1937.

OBJECT OF THE ACT

To regulate the payment of wages to certain classes of

employees in industry in particular form and at regular

intervals.

To prevent unauthorized deductions from the wages.

Merely concerned with fixation of wage periods and not

fixation of wages.


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Whole of India except the state of Jammu & Kashmir.

Factory

Industrial establishment

Air transport service

Mine and quarry

Plantation Dockyard

Workshops


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"wages" means all remuneration (whether by way of salary, allowances, orotherwise) expressed in terms of money or capable of being so expressed whichwould, if the terms of employment, express or implied, were fulfilled, be payableto a person employed in respect of his employment or of work done in suchemployment, and includes-

any remuneration payable under any award or settlement between the parties ororder of a court;

any remuneration to which the person employed is entitled in respect of overtime

work or holidays or any leave period; any additional remuneration payable under the terms of employment (whether

called a bonus or by any other name);

any sum which by reason of the termination of employment of the personemployed is payable under any law, contract or instrument which provides for the

payment of such sum, whether with or without deductions, but does not provide

for the time within which the payment is to be made; any sum to which the person employed is entitled under any scheme framed

under any law for the time being in force,


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any bonus (whether under a scheme of profit sharing orotherwise) which does not form part ofthe remuneration

payable under the terms of employment or which is not

payable under any award or settlement between the

parties or order of a court;

the value of any house-accommodation, or of the supply

of light, water, medical attendance or other amenity or of

any service excluded from the computation of wages by a

general or special order of the State Government;


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any contribution paid by the employer to any pension or

provident fund, and the interest which may have accrued

thereon;

any travelling allowance or the value of any travelling

concession; any sum paid to the employed person to

defray special expenses entailed on him by the nature of

his employment; or

any gratuity payable on the termination of employment

in cases other than those specified in


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c. Any travelling expense

d. Gratuity payable on termination

e. Special expenses entailed on employeef. Provident fund and pension and outstanding interest

contributed by employer.


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Every employer shall be responsible for the payment to personsemployed by him of all wages required to be paid under this Act: PROVIDED that, in the case of persons employed (otherwise than

by a contractor)- (a) in factories, if a person has been named as themanager of

the factory under 16[clause (f) ofsub-section (1) of section 7 of

the Factories Act, 1948 (63 of 1948)]; in industrial or other establishments, if there is a personresponsible to the employer for the supervision and control ofthe industrial or other establishments;]

upon railways (otherwise than in factories), if the employer isthe railway administration and the railway administration hasnominated a person in this behalf for the local area concerned.

The person so named, the person so responsible to theemployer, or the person so nominated, as the case may be [shallalso be responsible] for such payment.


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Every person responsible for the payment ofwages under section 3 shall fix periods (inthis Act referred to as wage-periods) inrespect of which such wages shall be payable.

No wage-period shall exceed one month.


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If there are 1000 person employed in a company there the wage

shall be paid before the 7th day

If there are more than 1,000 employed the wage shall be paid

before the 10th day.

Terminated employee is entitled to receive the wage earned by

him before the expiry of the 2nd working day from the day onwhich his service has been terminated ( Section 5(2) ).


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All wages shall be paid in current coin orcurrency notes or in both:

20[PROVIDED that the employer may, afterobtaining the written authorization of theemployed person, pay him the wages eitherby cheque or by crediting the wages in hisbank account.]


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DEDUCTION:SUBTRACT, TAKE AWAY, WITHHOLD

WAGE DEDUCTIONS:No Specific definition for deduction.

Notwithstanding the provisions of sub-section (2) ofsection 47 of the Indian Railways Act,1890 (9 of

1890), the wages of an employed person shall bepaid to him without deductions of any kind exceptthose authorized by or under this Act.


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Deduction for FINES

Deduction for ABSENCE FROM DUTY

Deduction for DAMAGE/LOSS

Deduction for HOUSE ACCOMODATION

Deduction for AMMENITIES + SERVICES

Deduction for RECOVERY OF ADVANCES

Deduction for RECOVERY LOANS MADE FOR THE

WELFARE OF LABOUR

Deduction for RECOVERY LOANS GRANTED FOR HOUSE

BUILDING

Deduction for PAYMENT TO CO-OPERATIVE SOCITIES AND

INSURABLE SERVICES


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Deduction Of INCOME TAX

Deduction made UNDER ORDERS OF COURT

Deduction for CONTRIBUTION TO PROVIDENT FUND

Deduction for CONSTITUTION OF A WELFARE FUND FOR

EMPLOYED PERSON + FAMILY MEMBERS

Deduction in respect of FEES PAYABE FOR MEMBERSHIP

TO TRADE UNION Deduction for PAYMENT OF INSURANCE PREMIA ON

FIDELITY GUARANTEE BONDS

Deduction for CONTRIBUTION TO PRIME MINISTERS

NATIONAL RELEF FUND


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No fine shall be imposed on any employed person save in respect ofsuch acts and omissions on his part as the employer, with theprevious approval of the State Government or of the prescribedauthority, may have specified by notice under sub-section (2).

A notice specifying such acts and omissions shall be exhibited in theprescribed manner on the premises in which the employment iscarried on or in the case of persons employed upon a railway(otherwise than in a factory), at the prescribed place or places.


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No fine shall be imposed on any employed person until hehas been given an opportunity of showing cause against thefine, or otherwise than in accordance with such procedure asmay be prescribed for the imposition of fines.

The total amount of fine which may be imposed in any onewage-period on any employed person shall not exceed anamount equal to 29[three per cent] of the wages payable tohim in respect of that wage-period.


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No fine shall be imposed on any employed personwho is under the age of fifteen years

No fine imposed on any employed person shall be

recovered from him by installments or after theexpiry of sixty days from the day on which it wasimposed.

Every fine shall be deemed to have been imposedon the day of the act or omission in respect ofwhich it was imposed.


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All fines and all realisations thereof shall berecorded in a register to be kept by the personresponsible for the payment of wages undersection 3 in such form as may be prescribed; and

all such realisations shall be applied only to suchpurposes beneficial to the persons employed in thefactory or establishment as are approved by theprescribed authority.


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Every employer shall maintain such registers andrecords giving such particulars of

persons employed by him

work performed by them

wages paid to them Deductions made from their wages

Receipts given by them and such other particulars andin such form as may be prescribed.

Every register and record required to be maintainedunder this section shall, for the purposesof this Act, bepreserved for a period of three years after the date of

the last entry made therein


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An Inspector of Factories appointed under 31[sub-section (1)of section 8 of the Factories Act,1948 (63 of 1948)], shall bean Inspector for the purposes of this Act in respect of allfactories within the local limits assigned to him.

The State Government may appoint Inspectors for thepurposes of this Act in respect of all persons employed upona railway (otherwise than in a factory) to whom this Actapplies.


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The State Government may, by notification in theOfficial Gazette, appoint such other persons as itthinks fit to be Inspectors for the purposes of thisAct, and may define the local limits with in which

and the class of factories and 12[industrial or otherestablishments] in respect of which they shallexercise their functions.


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make such examination and inquiry as he thinks fitin order to ascertain whether the provisions of thisAct or rules made there under are being observed

with such assistance, if any, as he thinks fit, enter,

inspect and search any premises of any railway,factory or 12[industrial or other establishment] atany reasonable time for the purpose of carrying outthe objects of this Act;

supervise the payment of wages to personsemployed upon any railway or in any factory orindustrial or other establishment;


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require by a written order the production at such place,as may be prescribed, of any register maintained inpursuance of this Act and take on the spot or otherwisestatements of any persons which he may considernecessary for carrying out the purposes of this Act;

seize or take copies of such registers or documents orportions thereof as he may consider relevant in respectof an offence under this Act which he has reason to

believe has been committed by an employer;


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Every employer shall afford an Inspector allreasonable facilities for making any entry,inspection,supervision, examination orinquiry under this Act


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Under Section 14 of this Act the appointment ofInspector is done.

Act provides the appointment of person to be authorityto hear decide any specified area claim arising out ofdeduction from wages or delay in payment wages under

section 15. There are three distinct categories of person prescribe as

authorities:

A presiding officer of labour court.

Any commissioner for workmens compensation. Other office with experience as judge of civil court or a

stipendiary.


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Claims arising out of deduction & Delay of wages and

penalty for maliciousclaims will be heard and decided by

the authority appointed by government.

The authority under the act can only adjudicate upon theclaim regarding the deduction & Delay in payment wages.

The appeal lies against the decision of the authority to a

court of small causes in a metropolitan town and before the

District Court within the period of 1 month.

The employer can appeal provided the total amount

deducted exceeds Rs 300.

The authority have all the power of a civil court under the

Civil Procedure Code ( Sec 17, 17A & 18 )


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Whoever being required under this Act to

Registers, maintain or to furnish any information(a)Fails to maintainsuch register or record; or

(b) Willfully refuses or without lawful excuse neglects tofurnish

such information or return; or

(c) Willfully furnishes information which he knows to be false; orrefuses to answeror willfullygives a false answerto any

questionnecessary 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 200 rupeesbut may extend to 1000rupees.


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To fix wage period not exceeding one month. To pay wages in cash or by cheque after taking written

authorization of the employed person To pay wages on any working day To make deductions permissible only under section 7 from

wages of the employed person To ensure the deductions do not exceed 75% where

payment to a cooperative society has to be made, in anyother cases, deductions do not exceed 50%

Not to impose fines exceeding 3% of wages of theemployees

To recover fines within 60 days of the date of offence. To display abstract of the Act and the Rules in English and

in language understood by the majority of workmen.

To maintain:a. Register of finesb. Register of wagesc. Register of deductions for damage or lossd. Register of advances


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Payment of Wages Act 1936

Regulation & Payment

Deductions

Enforcing Claims


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Object

Regulate wage payment Fix wage period & not wages


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Applicability

Factory

Railway

Other Est. by SG

Notification

Note: Act applies where wages payable for period where wages do notexceed Rs. 6500/-


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Wages

Remuneration payable to person employed in respect of hisemployment or work done

Includes

Rem. under award/settlement

Overtime/holiday/leave

Sum payable on termination

Any scheme under law

Excludes

Bonus not forming

part of terms

General/Special order

of SG

Employers Contri. To

PF/Pension & Interest

there upon

Travel Concession

Sum paid to defray

expense due to

employmentGratuity


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Employer

Includes

Legal representative of deceased employer


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Responsibility

Employer Person employing Labourer(Contract of employment)


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Wage Period 1 Month


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Less than 1000 persons 7

th

day from expiry

Other cases 10th day from expiry


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Authorities

Inspector

12 Months + IfTime Limit

Consequences

Refund wrong deduction Pay delayed wages


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Categories of Authorities

Sec 15(1)

P.O. of labour court, tribunalJudge of civil

court/Stipendary magistrate

Commissioner for workmen

compensation


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Claims & Appeals

Appointed

authority

Joint applicationallowed

Appeal

In 1 month

Employer appeal

Amount Deducted

>

Rs. 300

Attach Property

Liability Discharged

Paid to nominee ofdeceased

Deposit with

prescribed authority

(Sec 25A)


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Offences & Penalties

Penalties &

Trial of offences

Jurisdiction of court

Barred

1. Recovery of wages

2. Deduction from wages

(Sec 21)

Ir Ppt Payment of Wages 1936

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