• PAYMENT OF WAGES ACT, 1936.

• OBJECTIVES: TO REGULATE PAYMENT OF WAGES AND TO

ENSURE THAT WAGES ARE DISBURSED BY WITHIN TIME.

AND NO DEDUCTIONS EXCEPT AUTHORISED BY LAW

LAW ARE MADE .

• APPLICABLITY : TO FACTORIES, RAILWAYS, AIR SERVICES

MINES, PLANTATIONS, DOCK, TRAMWAY SERVICES,

QUARRY, OIL FIELDS AND ESTABLISHMENTS AS NOTIFIED

BY APPROPRIATE GOVT.
1
• COVERS EMPLOYEES DRAWING WAGES UPTO RS. 6,500/- PER MONTH.
(Section 01)

• PAYMENT OF WAGES BY 07TH DAY WHERE THERE ARE LESS ONE

THOUSAND PERSONS EMPLOYED AND WHERE ONE THOUSAND OR MORE

ARE EMPLOYED BY 10TH DAY OF THE MONTH SUCCEEDING TO WAGE-

PERIOD IN RESPECT OF WHICH THE WAGES ARE PAYABLE. (Section 5)

• AUTHORISED DEDUCTIONS FROM WAGES ALLOWED INCLUDE:

• FINES,
• FOR ABSENCE FROM DUTY.
• FOR DAMAGE, LOSS OF GOODS.
• HOUSE ACCOMMODATION PROVIDED BY THE EMPLOYER.
• FOR AMENITIES AND SERVICES SUPPLIED BY THE EMPLOYER.
• FOR ADVANCES, LOANS, INCOME-TAX, ON ORDERS OF COURT.
• PROVIDENT FUND, MEMBERSHIP OF THE CO-OPERATIVE SOCIETIES.
• MEMBERSHIP OF TRADE UNION, INSURANCE PREMIUMS.
• PM’S NATIONAL RELIEF FUND OR SIMILAR FUNDS AS GOVT. AUTHORISES.
2
(Secton 7)
• FOR EFFECTING ANY DEDUCTION WITHOUT GIVING DUE OPPORTUNITY

TO THE EMPLOYEE CONCERNED. THIS IS IN CONSONACE WITH THE

PRINCIPLES OF NATURAL JUSTICE.

• REGISTERS AND RECORDS HAVE TO BE MAINTAINED FOR ALL THE

PAYMENTS AND DUCTIONS/FINES MADE OR IMPOSED.

• EMPLOYER IS REQUIRED TO DISPLAY NOTICE OF DATE OF PAYMENT OF

WAGES AT THE ENTRANCE OF THE ESTABLISHMENT.

3
• “IF TEN OR MORE EMPLOYED PERSONS ACTING IN CONCERT ABSENT

THEMSELVES WITHOUT DUE NOTICE AND WITHOUT REASONABLE

CAUSE, SUCH DEDUCTION FROM ANY SUCH PERSON MAY INCLUDE SUCH

AMOUNT NOT EXCEEDING HIS WAGES FOR EIGHT DAYS.

AN EMPLOYED PERSON SHALL BE DEEMED TO BE ABSENT FROM THE

PLACE WHERE HE IS REQUIRED TO WORK, IF ALTHOUGH PRESENT IN

SUCH PLACE, HE REFUSES, IN PURSUANCE OF A STAY-IN-STRIKE OR

FOR ANY OTHER CAUSE WHICH IS NOT REASONABL IN THE CIRCUMSTANCE

TO CARRY OUT HIS WORK.

(Proviso to Sub-section 2 of Section 9).

4
• IN THE EVENT OF UN-DUE DELAYED PAYMENTS, ‘AUTHORITY’ UNDER THE

ACT MAY DIRECT WITHOUT PREJUDICE TO ANYOTHER PENALITY TO

SUCH EMPLOYER, DIRECT THE REFUND TO THE EMPLOYED PERSON OF

THE AMOUNT DEDUCTED OR DELAYED PAYMENT, TOGETHER WITH SUCH

COMPENSATION AS MAY BE DEEMED APPROPRIATE, IMPOSE FINE UPTO

10 TIMES THE AMOUNT DEDUCTED.

(Section 15 (3)

5
• ATTACHMENT OF PROPERTY OF EMPLOYER RESPONSIBLE FOR PAYMENT:

• PRESCRIBED AUTHORITY AFTER GIVING THE EMPLOYER AN OPPORTUNITY

MAY DIRECT THE ATTACHMENT OF SO MUCH OF THE PROPERTY OF THE

EMPLOYER OR OTHER PERSON RESPONSIBLE FOR PAYMENT OF WAGES.

(Section 17-A)

XXX s p singh bhalla

Consultant – HR/Industrial
Laws/Management of Disciplinary
systems.

# 9815985273; 0172-4659675

# 663, Phase 4, Mohli-160059.

Distt. SAS Nagar.