PAYMENT OF WAGES ACT,1936

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FLOW OF PRESENTATION

Definition Object of the Act Applicability of the Act Time of Payment of Wages Method of Payment of Wages Deductions Authority under Payment of Wages Offences & penalties Obligations of employers Obligations of employees

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DEFINITIONS
WAGE:
Wage includes all remuneration expressed in terms of money:Payable under any award or settlement between the parties or order of a Court; Over time work or holiday or any leave period; Any additional remuneration under the terms of employment. Wage 11/29/12 does not includes any bonus, pension fund or provident

DEFINITIONS

EMPLOYED PERSON It includes the legal representative of a deceased employed person. EMPLOYER It includes the legal representative of a deceased employer. FACTORY - It means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948 ), and includes any place to which the provisions of that Act have been applied under sub- section (1) of section 85

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OBJECTIVE OF THE ACT

To regulate the payment of wages to certain classes of employed persons in industry by: Fixation of wage period and Secondly the deductions from wages whether as fine or otherwise.

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APPLICABILITY OF THE ACT

Persons employed in: Any factory (a saw mill, ginning factory, godowns, yards etc. as defined in Factories Act, 1948). Tramway service or motor transport service engaged in carrying passengers or good or both by road for hire or reward.

Air transport service Dock, Wharf or Jetty, Inland vessel, mechanically propelled Mine, quarry or oil-field plantation
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Workshop or other establishment etc.

TIME OF PAYMENT OF WAGES

Wages may be payable daily,weekly,fortnightly & monthly. No wage- period shall exceed one month. When less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month. When more than 1000 workers, before the expiry of the 10th day of the following month. (Section 5).
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METHOD OF PAYMENT OF WAGES

All wages shall be paid in current coins or currency notes or in both. After obtaining the authorization, either by Cheque or by crediting the wages in employees banks Account {Section 6}

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DEDUCTIONS
General Rule - The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under this Act. Deductions from wages may be made under:

Fines Deductions for absence from duty Deductions for damage to or loss of goods of employed person Deductions for recovery of advances or over-payment of wages
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AUTHORITY UNDER THE POW ACT - 1936

(1) Appointment : The Appropriate Govt. may, by notification in the Official Gazette, appoint : a) Presiding officer of any Labour Court b) Presiding officer of any Industrial Tribunal c) Any Commissioner for Workmens Compensation d) Any other officer with experience as a Judge of a Civil Court or as a Judicial Magistrate to be the Authority to hear and decide the claims
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arising out of deductions from the wages, or delay in payment of the

AUTHORITY UNDER THE POW ACT - 1936

(2) Application : Where payment of wages have been delayed or any deduction has been made from wages, the application can be made to the Authority within 12 months by: a) The Person himself or b) Any legal practitioner or c) Any official of a registered trade union, duly authorized in writing. or d) Any 11/29/12 Inspector under this Act or

AUTHORITY UNDER THE POW ACT - 1936

(3) Process :

Authority shall hear the applicant and the employer or other person responsible for the payment of wages.

The Authority may direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation.

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OFFENCES

PENALTIES

On contravention of Sec. 5, Sec. 7

Fine not less than Rs. 1000 which may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000, may extend to Rs.10,000 Fine which shall not be less than Rs.1000 but may extend to Rs.5000 or second or subsequent conviction, fine not less than Rs.5000 but may extend to Rs.10,000.

For failing to maintain registers or records Wilfully refusing to furnish information or return
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OFFENCES

PENALTIES

Wilfully obstructing an Inspector in the discharge of his duties under this Act Wilfully refusing to produce on the demand of an Inspector any 11/29/12 register or other

Fine not less than Rs.1000 extendable up to Rs.5000 - On subsequent conviction fine not less than Rs 5000 may extend to Rs.10,000.

OBLIGATION OF EMPLOYERS

To fix the wage period not exceeding one month To pay wages on any working day To make deductions permissible only under Sec.(7) from the wage To give show cause notice to the employee before imposing fine To recover fines within 90 days of date of offence To afford facilities to inspectors for inquiry , inspection To display abstract of the Act and the rules in English and in a language understood by majority of employees
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OBLIGATION OF EMPLOYEES
Every employee is entitled: To receive his wages in prescribed wage period To refuse to agree to any deductions and fines other than those authorized under the Act(Sec. 7) To approach within six months the prescribed authority to claim unpaid or delayed wages, unauthorized deductions and fines along with compensation

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