WAGES ACT, 1948 AND PAYMENT OF WAGE ACT

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-WORKERS IN GARMENT INDUSTRY WORKERS IN BUTTONINDUSTRY

WORKERS IN STEEL INDUSTRY

PRESENTATION BY: HITANCHI KULKARNI (P1019)

What is the meaning of minimum wages?

These are fixed by state governments with regard to industries and the employer has to pay at least this much of wages (generally @ per day). These are generally revised every two / five years based on recommendations of a wage board (different for different industry) for this purpose

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OBJECTIVE:
To provide minimum wages to the workers working in organised sector. To stop exploitation of the workers To empower the government to take steps for fixing minimum wages and to revise this wages every two years. To apply this law on most of the

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Applicability of the Act

The Act extends to whole of India. To any employment in any State if it employs 1000 employees. The Act will not apply to employees in any undertaking owned by the Central Govt. or of Federal railway, except with the consent of the Central Govt. Thus, the wages have to be statutorily paid.

RAILWAY WORKERS
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Who is an employee?
EMPLOYEE is anyone (1) Employed for Hire or Reward (2) To do skilled or unskilled work (3) Manual or Clerical (4) Job Worker (5) Any person declared by the appropriate Government as Employee but, does not include any member of armed forces

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What is wages?
section 2(h)

Wages means all remuneration capable of being expressed in terms of money. It includes house rent allowance but does not include value of house accommodation, supply of light, water, medical attendance Value of any other amenity provided, if excluded by Government order Contribution to pension fund or provident fund or insurance Traveling allowance special expenses incurred by AFTERSCHOOL's MATERIAL FOR PGPSE
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Minimum wage fixation (section 3)

1.

The appropriate government shall fix and revise the minimum wages payable to employees employed in an employment specified in part I & II of the Schedule.

2.The rate can be fixed on a. time work basis b. piece work basis c. guaranteed rate basis when rate is fixed on piece work basis and d. overtime rate basis.
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3. Different minimum wage rates can be fixed for

CONTI.

different scheduled employments different class of work in the same scheduled employment adults, adolescents, children and apprentices Different localities.

4. Minimum rates can be fixed on basis of hour, day or month, or even longer period. BASIS: the fixation of minimum wages depends on various factors like Socio-economic and agroclimatic conditions, prices of essential commodities, paying capacity AFTERSCHOOL's MATERIAL FOR PGPSE and the local factors influencing 99

Minimum Rate of wages (section 4)

Any minimum rate of wages fixed or revised by the appropriate govt. may consist of, a basic rate of wages and a special allowance at a rate to be adjusted at such intervals and in such a manner as the govt. may direct OR A basic rate of wages with or without allowance for cost of living allowance based on cost of living index number. OR An all inclusive rate allowing for basic
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Procedure for fixation of minimum wages

Committee method : a committee is appointed to hold enquiry and suggest minimum wages to be fixed. Notification Method : notification is published in the official gazette and 2 months period is given for different parties to suggest their case. Based on the representations, the govt. will fix the minimum wagesthe notification can apply from retrospective dates also.

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AUTHORITIES:
Advisory boardGovernment is required to constitute Advisory Board to recommend minimum wages. The recommendations of Advisory Board are not binding on Government. Central Advisory Board It will be constituted from persons nominated by central government. It will consist of representatives of employers, employees and independent members

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Can you pay wages in kind?

Sec.

11 of Min. Wages Act says that you can

only make the payment in cash. If it is a custom to make payment wholly or partly in kind, the appropriate govt. may permit it. It may by notification in the Official gazette, authorize the provision of essential commodities at concessional rates.

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Are working hours also fixed? Will there be over time?

Sec. 13: the govt. may fix the hours of work also. The govt. may provide for rest day, the govt. may provide for interval also. Sec. 14: if minimum wages is fixed by hours, then the workers will be paid overtime if he works more than the hours prescribed. The overtime rate will be as fixed in this law or other law as applicable. What will happen if a worker works less than normal hours? He will receive minimum wages However, he will not receive minimum

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Employer to close the unit, if minimum wages cannot be paid

If employer cannot pay minimum wages, he has to close down the undertaking. Paying capacity is not relevant consideration for rate of minimum wages. Deepak wages are payable irrespective of Minimum Photos v. State of Kerala 2001 financial position of individual employer Hindustan Aeronautics v. Workmen AIR 1967

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CASES

Case : U. Unichoy v.s Kerala The court held being a welfare state, it is the responsibility of the government to prevent exploitation of workers, so the govenrnment should fix minimum wages. : Kamani Metals vs workers Minimum wages have to be paid, whether the factory is in profit or loss. Even if the factory is in loss, you have AFTERSCHOOL's MATERIAL FOR PGPSE 16 to pay minimum wages.

Case

If you pay more than minimum wages fair .

Even if State Government notification prescribes variable dearness allowance which is linked with cost of living index, amount paid on basis of DA is not to be taken as an independent component of minimum wages, but as part and parcel of process of computing minimum wages. Hence, in cases where employer is paying total sum which is higher than minimum rates of wages fixed under the Act including the cost of living index (VDA), he is not required to pay VDA separately.

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Some interesting facts

There are 45 scheduled employments in Central sphere and 1222 employments in State sphere. It includes workers employed in unskilled, semiskilled and skilled sectors like shawl & carpet weaving, different mines, construction or maintenance of roads, agriculture or in conjunction with farm operations, industries and factories etc. as specified in Schedule I of the Act. Due to widespread disparity in the minimum wages throughout the country The National Floor Level Minimum Wage is fixed at Rs 80 per day by the govt.
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Minimum wages in Delhi (per day) Skilled Rs. 142.10

Semi-skilled Unskilled

In Australia its 543.78 Australian dollars per week;

Rs. 132.20 Rs. 125.80

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NEPAL- 4,600 Nepalese rupees a month for unskilled labor (3,050 rupees as a basic salary, and 1,550 rupees as an allowance); 4,650 NRS for semi-skilled labor; 4,760 NRS for skilled labor; 4,950 NRS for highly skilled labor PAKISTAN- 6,000 Pakistani rupees per month, applying only to industrial and commercial establishments employing 50 or more workers THAILAND-ranges from 148 Thai baht to 203 baht per day, depending on the cost of living in various provinces; set by provincial MATERIAL FOR wage tripartite PGPSE AFTERSCHOOL's 20

PAYMENT OF WAGE ACT

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PURPOSE

Ensure regularity of payment To avoid withholding wages , delays in wages unreasonable deductions out of wages remedy to workers against violation of rights
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Preventing

Provide

APPILICABILITY

It applies in the first instance to the persons employed in any factory. to persons employed upon any railway by a railway administration or, either directly or through a subcontractor, by a person fulfilling a contract with a railway administration, and to persons employed in an industrial or other establishment specified as follows:

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CONTI
Tramway service or motor transport service engaged in carrying passengers or goods by road. Air transport service other than exclusively employed in the military, naval or air force. Mine, quarry, or oil field. Establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals. Any other establishment which the central government or state government need to protect the interest of employed. Persons getting basic wage upto 6500

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WAGES

All remuneration due to any worker or employees if the terms of contract of employment are fulfilled

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CONTI..
The following do not come under the definition of wages: Any bonus which does not form part of remuneration
Value

of any house accommodation or supply of light, water etc. EPF, interest, gratuity,.

Pension,

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Fixation of wage-periods
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 be payable. (2) No wage period shall exceed one month.

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Time of payment of wages

The wages of every person employed upon or in(a) any railway, factory or industrial or other establishment>1000- before the expiry of 7th day of wage period <1000- before the expiry of 10th day of wage period (c) in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the
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CONTI
(2)Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated (3) Where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognized holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated. (4) All payments of wages MATERIAL FOR PGPSE on a AFTERSCHOOL's shall be made

Payment in Legal Tender

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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DEDUCTIONS FOR FINES: 1. Fine can be imposed on any employee due to some acts, it has been specified in the notice. 2. No fine to be deducted until he has been given an opportunity to show cause against it. 3. No fine on a person who has not attained the age of 15yrs 4. Not more than 3 % of basic wage. 5. Fine imposed is not recoverable after 60 days from the day it has been imposed or in installments. 6. All fines to be recorded in a register.
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PERMISSIBLE OR AUTHORIZED DEDUCTIONS

II-Deduction for absence from duty

Wage

deducted for actual period of unauthorized absence. If 10> workers do not attend work , without due notice and without a proper reason then 8 days wages, with due notice, as specified in the contract of employment.
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V- Deduction for recovery of advances

Deduction to be made in case of any amt given to the employee as an advance.

VI- deduction for recovery of loans VII-Deductions for income tax VIII-Deduction for provident fund IX- deduction for payment of insurance premium.

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CONTI
x- Deduction for payments to cooperative societies and insurance schemesTotal amount of deductions: Not more than 75 % wholly or partly made for payments to cooperative societies 50% for other cases.

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Maintenance of registers and records

(1) Every employer shall maintain such registers and records giving such particulars of persons employed. by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed. (2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made therein.
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CONTI
(4) An Inspector may,(a) make

such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act or rules made there under are being observed; such assistance, if any, as he thinks enter, inspect and search any premises of any railway, factory or [industrial or other establishment] at any reasonable time for the purpose of carrying out the objects of this Act;
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(a) with

CONTI..
c. supervise the payment of wages to persons employed upon any railway or in any factory or industrial or other establishment; d. Seize or take copies of registers or documents which he consider relevant in offence under this act

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Penalty for offences under the Act.

1.Non- payment of wages in time or making unauthorized deduction or imposing un reasonable fines is punishable with fine not less than Rs 200 and not more than 1000 2. Failure or refusal to maintain require records or registers or to furnish required info or return or giving false info is also punishable with fine from Rs 200 to 1000 3.Wilfully obstructing an inspector in the discharge of his duties or refusing r neglecting to afford him facilities of inspection ,inquiry or so on or register or preventing any person from appearing AFTERSCHOOL's MATERIAL before inspector is punishableFOR PGPSE max with a

CONTI

4. If any person who has been find guilty 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 1 months- 6 month Fine 500-3000 (5) 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
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Payment of Undisbursed wages in case of death

In

case of death ,the amount payable as wages is to be paid to the person nominated by him in accordance with the rules set in the Act

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THANK YOU!!!
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