The Payment of Wages Act, 1936

Introduction
Prior to 1936, there was no law regarding the regulation of payment to workmen. It was as early as 1925 that a Private Bill called the "Weekly Payment Bill" was for the first time introduced in the Legislative Assembly. The Bill was, however withdrawn on an assurance from the Government that the matter was under active consideration of the Government ar that time. This was an attempt to remedy some of the evils like delay in payment of wages, non-payment of wages, deductions made from wages on account of fines imposed by the employer. etc. During that period the Royal Commission on Labour in India draw attention to the abuses in the system of wage payment, and made valuable recommendation as under: 1.Children should be exempted from fines imposed by the employer. 2. The minimum amount which could be deducted by way of fine should not exceed, in any month, half an anna in the rupee of the worker's earnings.

(3) The sum realised as fine should be utilised for some purpose beneficial to the employees as a class and should be approved by some recognised authority. (4) A notice specifying the acts and omissions in respect of which fines. may be imposed should be posted and any other fine should deemed to be illegal. (5) Any deduction made for goods having been damaged should not exceed the wholesale price of the goods damaged. (6) Deductions may be made on account of provision for housing accommodation and of tools and raw materials. (7) Imposition of any fine and deduction made which is not permitted by law should be made penal. Based on these recommendations of Royal Commission on labour in India, a Bill of Payment of Wages Act was introduced in the Legislative Assembly in 1933. It was passed in 1936 and came into force on 21 st March 1936. The Payment of Wages Act was amended in the year 1937,1957,1964 and in 1976 according to the needs of the situation prevailing at that time. The Payment of Wages (Amendment) Act, 1976 extends the Act to the whole of India. Object: The object of the Act as specified in the preamble is "to regulate the payment of wages to certain classes of employed persons". The he regulation contemplated by the Act is two fold; (i) the date of payment of wages, and (ii) the deductions from wages, as fine or otherwise. In order to ensure payment of wages to persons covered by the Act, certain provisions have been made in this Act. The Bombay High Court in Arvind Mills Ud v. K.R. Gadgil (AIR 1941 Bom. 26) observed that "the general purpose of the Act is to provide that employed persons shall be paid wages in a particular form and at regular intervals without any unauthorised deductions". The use of expression "Certain classes of persons" in the preamble applies to persons drawing on an average wages less

than rupees one thousand six hundred per a month [Sec. 1 (6) of the Act]. This Act applies to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) on any railway by a railway administration or either directly or through a subcontractor, by a person' fulfilling a contract with a railway administration to coal-mines and plantations. as well as to establishments in which work relating to the construction, development or maintenance of buildings, roads, bridges, canals, or relating to operations connected with navigation, irrigation or the supply of water, or relating to generation, transmission and distribution of electricity or any other form of power is carried on. The State Governments are, however, authorised to extend all or any of the provisions of the Act to any industrial establishment. But it cannot do so in relation to any industrial establishment owned by the Central Government with objects not confined to one State, without consulting the Central Government. Definitions (See. 2) For the purpose of this Act (a) industrial establishment means any tramway or motor omnibus service; air transport service; dock, wharf or jetty, inland vessel mechanically propelled; mine, quarry or oilfield; plantation; workshop or other establishment in which articles are produced, adapted or manufactured with a view to there use, transport or sale; establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation or the supply of water, or relatirigg to the generation, transmission and distribution of electricity or any other form of power is being arried on; (b) wages means all remuneration's (whether by way of salary, allowance or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and include (a) any remuneration payable under any. award or settlement between the parties or order of a Court; (b) any rumuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum by reason of the termination of employment of the person employed 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; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; but does not include (i) any bonus (whether under a scheme of profit sharing or otherwise) which

does not form part of the remuneration payable under terms of employment or which is not payable under any award or settlement between the parties or order of a Court; (ii) 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; (iii) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (iv) any travelling allowance or the value of any travelling concession; (v) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (vi) any gratuity payable on the determination of employment in cases other than those specified in sub-clause (d). Responsibility for payment of wages (Sec. 3) The responsibility for payment of wages to workmen is primarily that of the employer. In the case of factories, the manager; in industrial establishments, the person responsible to employer for supervisor. and control of the establishment; and upon railways, the person nominated by the railway administration on this behalf for the local area, shall be responsible for such payment. In respect of contractors, the intention of the Act is that the contractor should be responsible for payment where he undertakes actual work for the principal employer, and is in charge of the labour and that the principal employer or his manager shall be responsible where the contractor merely contracts for the supply of labour to the employer. Wage-periods (Sec. 4) Every person responsible for the payment of. wages must fix wage-periods in respect of which wages shall be payable, and see that no wage-period exceeds one month in any case. The penalty for contravention of this provision is fine extending to Rs. 200. Time of payment of wages (Sec. 5, 6) In regard to the time of payment of wages the following rules must be observed: 1. In the case of undertakings employing less than one thousand persons wages must be paid before the expiry of the seventh (lay, and in other cases before the expiry of the tenth day, after the last day of the wage period in respect of which the wages are payable. In the case of persons employed on a dock, wharf or jetty or in 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 m~y be, shall be paid before the expiry of the seveflih day from the day ot such completion 2. A discharged worker must be paid his wages before the expiry of the second' working day from the day on which his employment is

terminated. 3. All payments of wages must be made on a working day (Sec. 5).Penalty for c. avention is fine tip to Rs. 500. 4. All wage, must be paid in current coin or currency notes or in both or with the written authorisation of the employed person, wages may be paid by cheque or by crediting the wages in his bank account (Sec. 6). Penalty for contravention is fine up to Rs. 200. Deductions which may be made from wages (See. 7) It is laid down in this Section that notwithstanding the-provisions of Sec. 47(2) of the Indian Railways Act, 1890, the wages of employed person shall be paid to him without deductions of any kind except those authorised by or under this Act. Sec. 47(2) of the Indian Railways Act provides for fine or forfeiture of one month's pay for breach of rules made under that Section. According to Sec. 7 of the present Act, no such deduction can be -.Trade in respect of any railway worker whose monthly wages do not amount to Rs. 1600 or more. Every payment made by the. employed person to the employer or his agent shall be deemed to be a deduction from wages. Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely (i) the withholding of increment or promotion (including the stoppage of increment of an efficiency bar) ; (ii) the reduction to a lower post or time-scale or to a lower stage in a time-scale; or (iii) suspension; shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of such penalty are in conformity with the requirements as specified by the State Government. Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, .and may be of the following kinds only: (1) fines; (2) for absence from duty; (3) for damages or loss; (4) for house accommodation; (5) for amenities and services; (6) on account of advances which the employer is compelled to make, including advances for travelling allowance or conveyance allowance, or for adjustment of over-payment of wages; (7) on account of payments to certain provident funds, to cooperative societies, or premium for life insurance; (8) for recovery of loans made from any fund constituted for the welfare of labour; for recovery of loans granted for house-building; (9) for income-tax payable by the employed person; (10) under an order of a Court; (11) for payment to cooperative societies; (12) made with the written authority of the worker in furtherance of any War Savings scheme approved by the State Government for the purchase of securities of the Government of India; (13) for payment of insurance premia; (14) for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins, mutilated or forged currency notes; (15) other losses sustained by a railway administration through the

negligence of an employed person. The total amount of deductions which may be made in any wage-period from the wages of any employed person shall not exceed (i) in cases where such deductions are wholly or partly made k)r payment to cooperative societies, 75 per cent of such wages; and (ii) in any other case, 50 per cent of such wages. Fines (Sec. 8). The following rules apply to deductions by way of fines I Fines can be imposed only for acts and omissions specified in notices approved by the State Government, or the Chief Inspector of Factories. in the case of factories, or the Supervisor in other cases. 2. No fine can be imposed on any employed person unless he has been given an opportunity of showing cause against the fine. 3. No fine can be imposed any employed person who is under the age of 15 years. 4. The total amount of fine which may be imposed in any wage-period on any employed person must not exceed an amount equal to half-ananna in the rupee of the wages payable to him in respect of that wage period. 5. The fine shall be deemed to have been imposed on the day of the act or omission in respect of which it as imposed and cannot be recovered from the person by installments or after the expiry of 60 days front the day on which it was imposed. 6. All the lines so realised or realised must be recorded in a prescriber' register and must be credited to a fine fund. . 7. The proceeds of the fine fund must be utilised only for such purposes beneficial to the workers of the factory or the establishment as are approved by the prescribed authority. Penalty for contravention of any of these rules in fine tip to Rs. 500, Deductions for absence from duty (See. 9) Deductions for absence from duty are permitted but the amount of such deductions cannot exceed the sum v2hic- the person Would have been entitled to if he had worked the same number of days for which the deduction is made; provided that, subject to any rules made in, this behalf 'by the State Government, i1' 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 8 days as may by any such terms be due to the employer in lieu of the due notice. By an amending Act of 1937 employers are permitted to withhold wages in die case of "stay-in" strikes. Penalty for contravention is fine up to Rs. 500, Deductions for damage or loss (See. 10) Deduction for damage to or loss of good expressly entrusted to the employed person for custody, or for the loss of money for which he is required

to account are permitted only where such damage or loss is directly attributable to his neglect or default and only after he has been given an opportunity of showing cause against the deduction. Such deductions arc not to exceed the amount of the damage or loss to the employer and must be recorded in a prescribed register. Penalty for contravention is fine tip to Rs. 500. Deductions for services rendered (Sec. 11) Deductions for house accommodation and for amenities and services rendered by the employer are permitted, but only when a". employed person has accepted the house accommodation, amenity or service as a term of employment or otherwise, and shall not exceed an amount equivalent to their value. Furthermore, the deductions in respect of amenities and services can be made subject only to the following conditions: 1. The approval of the Chief Inspector of Factories shall be obtained in writing to compulsory or general deductions from waves for any amenities or services provided by the employer. . 2. The kind and standard of services and amenities provided shall be subject to the approval of the Chief Inspector of Factories. 3. The maximum deduction shall not exceed half the wages at my period. Penalty for the contravention of any provisions of this Section is 'me up to Rs. 500. The house accommodation, for which deductions are now allowed, may be supplied by the employer or by Government or by any housing board set up under law, e.g., under the Subsidised Industrial Housing Scheme (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidising house-accommodation. Deductions for recovery of advances (Sec. 12) Deductions for recovery of advances or for adjustment of over-payments of wages can be made only on the following conditions: 1 . An advance of money made before employment must be recovered from the first payment of wages, but advances given for travelling expenses can in no case be recovered. 2. Advances of wages not already earned are subject to rules made by State Governments, which are as follows: (i) an advance of wages not already earned shall not, without the previous permission of an Inspector, exceed an amount equivalent to the wages earned by the employed person during the preceding two (Bombay four) calendar months, or if he has not been employed for that period, mice the wages he is likely to earn during he two (Mumbai four) subsequent calendar months; (ii) the advance may be recovered in instalments by deductions from wages spread over not more than twelve (Bombay eighteen) months. No instalment shall exceed one-third, or where the wage., of any wage-period are not more than twenty rupees, one fourth of the wages for the wage-period in respect of

which the deduction is made; (iii) the amounts of all advances sanctioned and the payment thereof shall be enturd in a prescribed register;
(iv) (Bombay only) the rate of interest charged for advances granted shall not exceed 6 per cent per annum. Penalty for contravention is fine up to Rs. 500. Other Deductions Permitted by the Act (Sees. 12-A an 13) The Act also permits the following deductions from the wages of an employee: 1 . deductions or Income-tax payable by (lie employed person; 2. deductions required to be made by order of a Court or other competent authority; 3. deductions for contribution to and repayment of advance from any recognised or approved fund; 4. deductions, made with the written authorisation of the employee for payment of any premium oil his life insurance policy to the Life Insurance Corporation of India, or for tile purchase Of SeCUrilie5 of the Government of India or of any Smile Government or for being deposited in any Post Office Saving Bank in furtherance of any savings scheme of any such Government; 5. deductions, made with tile written authorisation of the employed person, for contribution to [Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in tile Official Gazelle, specify. Penalty for contravention is fine up to Rs. 500. Inspectors (Sec.14) The administration and enforcement of the Act Is the responsibility of the State Inspectors of Factories in the case of factories within their local limit~, and that of the Chief Labour Commissioner (Central) in the case of persons employed on railway (other than in railway factories). The Inspector or tile Labour Commissioner may, at all 1 ea51 011aldC hours, Liner on any premises, and make such examination of register or document relating to the calculation and payment of wages, and take on the spot otherwise such evidence of any person, and exercise such other powers of inspection, as he may deem necessary for carrying out the purpose of this Act Sec.14-A provides that every employer shall afford an Inspector all reasonable facilities for making an entry, inspection, supervision or inquiry under the Act. Claims for wrongful deductions (See. 15) The State Government may either appoint a Presiding Officer of any Labour Court or Industrial Tribunal or a Commissioner for Workmen's Compensation or other Officer with judicial experience (Civil Judge or Magistrate) to hear and decide all claims arising out of deductions from the wage" and delay in payment of wages, Where any wrongful deductions have been made from file wages of a person, or any payment of wages has been delayed, such person himself, or my legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission or the authority may, within twelve months of the dale of deduction or the date on

which tile payment of wages was due, apply to die authority for a direction. Ali application presented after the expiry of twelve months may he admitted by the authority for sufficient cause

On admitting the application, the authority will give an opportunity (0 the applicant and the employer or any person responsible for tile payment of wages to be heard, and on being satisfied, direct the employer or (lie other person to pay to the claimant the amount wrongfully withheld plus compensation tip to tell times that sum in the case of deduction, and not exceeding Rs. 25 per head in the case of delay. But the payment of compensation for delayed wages will net be ordered if the delay vas, due to (a) bona fide error or bona fide dispute as; to the amount payable to the employee; or (b) the occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment; or : (c) the failure of die employed person to apply for or accept payment. An amount directed to be paid by the employer to the employed person may be recovered as if it were a fine imposed by a magistrate. The authority may refuse to entertain the application, if after giving the applicant an opportunity to be .heard, the authority is satisfied that (a) the applicant is not entitled to present an application; or (b) the delay in payment of wages was excusable, as provided above; or (c) the applicant shows no sufficient cause for making a direction for payment; or (d) the application is insufficiently stumped or is otherwise incomplete. If the authority hearing the application is satisfied that it was either malicious or vexatious, the authority may direct the applicant to pay a penalty not exceeding Rs. 50 to the employer. Single application in respect of claims from unpaid group (Sec. 16) Employed persons are said to belong to the same unpaid group (as explaind in Sec. 26) if : (i) they are born on the same establishment, (ii) deductions have been made from their wages in contravention of the Act for the same cause and during the same wage period(s), or (iii) their wages for the same wage periods have remained unpaid after the day fixed by section 5. Sec. 16 1 (2) lays down that a single application may be presented under Sec. 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case ever person on whose behalf such application is presented may be awarded maximum compensation to the extent specified in Sec. 15(3) of the Act. Sec. 16(3) lays down that if several applications are pending, presented under Sec. 15 by employees belonging to the same unpaid group, the Authority can do with them as if it was a single application by an unpaid group.

Appeal (Sec. 17) This section provides that an appeal may be preferred from the following orders or directions of the Authority: (i) an order directing the employer or the persons responsible for payment of wages. to refund the delayed wages; (ii) an order directing payment of compensation to the employee under Sec. 5 (3) (iii) an order imposing penalty whether on the employee or the employer under Sec. 5 (4) An appeal under this section can be made within 30 days of the date on which the order or direction was made in Presidency town before the Court of small causes and elsewhere before the District Court within whose jurisdiction the industrial establishment is situated. An appeal may be filed by the employer or other person responsible for the payment of wages under Sec. 3, if: . (i) the total sum directed to be paid by way of wages and compensation exceeds Rs. 300/- or (ii) such direction has the effect of imposing on the employer or the other person a financial liability exceeding Rs. 1000/-. An appeal may be final by an employed person or any legal practitioner or any official of a registered Trade Union authorised in writing to act on his behalf or any inspector under this Act, or any other person permitted by ihe authority to make an application under Sec. 15(2); if th~ total amount of wages claimed to have been with held: (i) from employed person exceeds Rs. 20/-; or (ii) from the unpaid group to which the employed person belongs or belonged exceeds Rs. 50/ An appeal may also be preferred by any person directed to pay a penalty under Sec. 15(4) of the Act. No appeal shall lie as aforesaid unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the direction appealed against. Section 17(2) lays down that any order dismissing either or wholly or in part on application made under Sec 15(2) or a direction made under Sec 15(3) or Sec 15(4) shall be final unless an appeal under Sec. 17(1) is preferred against any such order or direction. Sec. 17(3) provides that where an employer prefers an appeal under this section, the authority against whose decision the appeal is filed may, pending the decision of the appeal, with hold payment of any sum in deposit with it. Whese a direction to withhold payment such sum is made by the Court of Appeal, such authority shall, and in other cases, may withhold payment of any sum so deposited wi:h it. Sec. 17(4) provides that the Court of appeal may in its discretion, submit any question of law for the decision of the High Court. Where any such

question in so referred, the Court of Appeal shall decide the matter in conformity with the decision of the High Court. Conditional attachment of property of employer or other person who is responsible for payment of wages (Sec. 17 A) This section makes provisions for conditional attachment of so much of the property of the ernployer or orher person responsible tor payment of wages as is, in the opinion of the authority or the Court, sufficient to satisfy the amount which may be payable under the direction. The conditional attachment may be made under the following circumstances. (a) When the application under Sec. 15(2) or appeal under Sec. 17 has been filed by the employed person or any official of a registered Trade Union authorised in writing to act on his behalf, or any legal practitioner. or any Inspector under Sec. 15 (2) of the Act. . (b) When the authority or the Court is satisfied that the employer or other person responsible for the payment of wages under Sec. 3 is likely to evade payment of any amount that may be directed to be paid under Sec. 15 or Sec. 17. (c) When the authority or the Court is of the opinion that the ends of justice would be defeated by the delay. However, under the circumstances mentioned above, an order of attachment passed for the payment of wages, the employer or the person responsible for payment shall be given an opportunity if being heard. Power of authority appointed under Sec. 15 (Sec. 18) Every Authority appointed under Sec. 15 of the Act shall have all the powers of a Civii Court under the Code of Civil Procedure, 1908 for the purpose of (a) taking evidence; (b) enforcing the attendance of witness; and (c) compelling the production of documents. Further, any such Authority s~all be deemed to be a Civil Court for all purposes of Sec. 195 of Code of Criminal Procedure, 1898. MISCELLANEOUS PROVISIONS OF THE ACT 1. Maintenance of registers and records (Sec. 13-A) Sec 13-A lays down that every employer shall maintain such registers and records in the prescribed manner containing the following particulars: (i) particulars of person employed by him, (ii) the work performed by the persons employed, (iii) the wages paid to the persons employed, (iv) the deductions made from the wages of the persons employed, . (v) receipts given by the persons employed; and, (vi) such other particulars, if any Penalty for offences under the Act (Sec. 20) Any person responsible for contravention of the following provisions of the Act,

for the payment of wages to an employed person, shall be punishable with fine extending to not less than Rs. 200- but to a maximum of Rs. 1000- : (a) failure to maintain such register or record; or (b) willful refusal or neglect without lawful cause to furnish such informatior or return; or (c) willfully furnishing or causing to be furnished any information or return which he knows to be false; or (d) refusal to answer or willfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act The following offences shall be punishable with a minimum fine of Rs. 200/but extend to Rs. 1000/- under Sec. 20(4) of the Act. (a) wilfully obstructing an Inspector in the discharge of his duties under the Act; or (b) refusal or wilfully neglecting to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision or inquiry authorised by or under this Act in relation to any railway, factory or industrial or other establishment or (c) wilful refusal to produce, on demand of an inspector, any register or other document kept in pursuance of this Act; or (d) preventing or attempting to prevent or doing anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act. Section 20(5) lays down that if any person who has been convicted of any offence punishable under this Act, is again guilty of involving contravention of the same provision. He shall be punishable on subsequent conviction with imprisonment for a term which shall not be less than one month, but which may extend to six months with fine, which shall not be less than Rs. 500/-, but may extend to Rs. 30001-. But for the purposes of this sub-section, no cognizance shall be taken of any conviction made than two years. According to Sec. 20(6); if any person fails or wilfully, 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 additional fine, which may extend to Rs. 100/- for each day for which such failure or neglect continues. Procedure in trial of offences (Sec 21) This section provides that before any Court shall take cognizance of a complaint against any person for an offence under this section, the following conditions must be fulfilled; (i) an application in respect of the facts constituting of offence has been presented under Sec. 15 ; (ii) the application must have been

granted wholly or in part, and (iii) the authority empowered under Sec. 15 or the Appellate Court granting the application must have sanctioned the making of the complaint for such offence. Sec. 21 (2) provides furthers that before sanctioning the making of a complaint against any person for an offence, the authority empowered under Sec. 15 or the Appellate Court, as the case may be, shall give an opportunity to such person of showing cause against the granting of such sanction. The sanction shall not be granted if such person satisfied the authority or Court that his default was due to : (a) a bona-fide error or bona-fide dispute as to the amount payable to the employed person; or (b) the occurrence of an emergency or the existence of exceptional circumstances; or (c)the failure of the employed person to apply for Or accept payment Sec 21 (3) provides that no Court shall take cognizance of a contravention of any rule made under Sec 26, except on a complaint made by or with the sanction of an Inspector under Act. Sec 21 (4) provides that in imposing any fine for an offence under Sec. 20(1) the Court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under Sec. 15. Bar for suit (Sec.22) This section provides that a suit for the recovery of wages or of any wrongful deduction from wages shall not be entertained by any Court under the following circumstances. (a) The amount claimed forms the subject of an application under sec. 15 which has been presented by the plaintiff and is pending before the authority appointed under this section or of an appeal under Sec 17; or (b) The amount claimed had formed the subject of a direction under Sec. 15 in favour of the plaintiff; or (c) The amount claimed had been adjudged in any proceeding under Sec. 15 not to be owed to the palintiff; or (d) The amount claimed could have been recovered by an application under Sec. 15 Protection of action taken in good-faith (Sec.22-A) A suit, prosecution, or the other legal proceeding shall not lie against the Government or any officer of the Government for any thing which is in good-faith done or intended to be done under this Act. Contracting Out (Sec. 23) Any contract or agreement whether made before or after the commencement of

this Act, whereby an employed person relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right. Sec 23 only prevents an employee from contracting away the rights which are given to him by the Act and that it does not prevent him from entering into an agreement advantageous or beneficial- to him. (Case: F.W. Heilgers Co. v. Nagesh Chandra Chakrawarti, AIR 1949, FC 142) In a decision of the Court (In Dinaram Chutiya v. Divisional Manager, AIR 1958), it was held that the mere deduction of serven1 allowance either partial or whole cannot be said to contravene Sec. 23 of the Act. It was further observed in this case that a contract validly entered into between the employer and the employee by which the contract of service has been modified as regards the amount of wages is not hit by Sec. 23. This Act confers the following subject: (i) to receive wages; (ii) to receive them at the proper time specified in the Act; and (iii) to receive from without deduction. The employer and the employees may, by mutual agreement, change the scale of wages, and such agreement does not amount to contracting out within the preview of Sec. 23 of the Act. It was held -that Sec 23 of the Payment of Wages Act does not prevent the employee from entering into an agreement advantageous or beneficial to him. Deduction from wages is for the betterment of employees. Application of Act to railways, mines and oil fields (Sec. 24) The powers of this Act conferred upon the State Government shall, in relation to any oil fields, be power of the Central Government. Display by notice of abstract of the Act (See 25) The person responsible for the payment of wages to person employed in a factory or an industrial or other establishment shall be displayed a notice containing such abstracts of this Act and the rules made thereunder in English and in the language of the majority of the persons employed there, as may be prescribed. Payment of undisbursed wages in cases of death of employed person (Sec. 25A) Subject to the other provisions of the Act, all amounts payable to an employed person as wages shall be paid to (a) the person nominated by him in this behalf in accordance with the rule made under the Act or (b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated be deposited with the prescribed authority who shall deal wit the amounts so deposited in such manner as may be prescribed, so that the employer shall be discharged of his liability to pay those wages. Rule-making power (Sec. 26) The State Government may make the rules to regulate the procedure to be

followed by the Authorities and Courts referred to in Sec. 15 and 17. The rules made under Sec. 26 of the Act may: (a) require the maintenance of such registers, records, returns and notices, etc; . (b) require the display in conspicuous place on premises where the employment is carried on; (c) provides for the regular inspection of the weights, measures, etc. (d) prescribe the authority competent to approve the omission in respect of which fines may be imposed. (e) prescribe the procedure for the imposition of fines. (f) prescribe the extent to which advances may be made and the instalments by which they may be recovered; including the rate of interest payable the reon. (g) prescribe the powers of inspectors. (h) prescribe the amount of Court fees payable in respect of any proceedings under the Act. Every rule made by the Central Government under this section shall be laid before each House of Parliament. ---------