Payment of wages act 1936

Introduction
 This act was passed on 23th April 1936  It came into force from 28th March 1937. 1937.  It was further amended in 1957,1962,1964,1967,1970,1976,1982 and 1987

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

Provisions of Act
Sec 1 Scope and Coverage  Applies to whole of India

 To persons employed in industry/factory/railway/employees of contractor working for a railway administration

Sec 2 :It contains various definitions

 Wages:- It means all remuneration Wages: (salary, allowance or otherwise) expressed in terms of money or capable of being expressed are payable to a person employed .  Wages do not include :  Value of house accommodation , light , water medical etc. etc.  Travelling allowances  Bonus

cont

 Gratuity payable  Contribution to pension or provident fund etc. etc.  Industrial Establishments  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. 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

 Sec 3 :-Persons responsible to pay wages : Employer to employees  In railway , the person nominated administration. administration.  In factory , person named as manager.

by

 Sec 4:- Fixation of wage period 4: (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.

 Sec 5 :-Time of payment of wages : Employer shall fix wage period not exceeding 1 month. month.  If no of employees >1000 wages to be paid before expiry of 7th day after the day of wage period  To be paid on working day  Sec6 : Wages to be paid in currency notes  Should be paid in currency notes or coins.

 Sec 7-b :-Deductions from wages 7- : Absence from duty  For house accommodations provided by employer  For recovery of advance &loan by employer.  Damage or loss of goods .  Fines , provident fund  For income tax  By order of court .
It also contains illegal deductions .

Sec 14 : Inspectors  Section confers upon the state govt to make appointment of inspectors Powers of inspectors :  May enter , inspect any factory premises and supervise payment of wages.  May examine or enquire whether provisions of the act are followed .  They can seize registers or other documents relevant in respect of any offence under this act.

 Sec 15 :- Claims Arising out of deductions from wages/ authority to hear claims: claims:  This act confers powers on state govt to appoint an authority to hear and decide all claimed out of deductions from the wages or delay in payment. payment. Following may be appointed :  Commissioner for workers compensation  Officer of any labour court  Judge of civil court  Magistrate

 Penalties for offences under the act : Whoever responsible to maintain registers if  Fails to do so  Willfully refuses to furnish info. info.  Willfully furnishes info which he knows is false  Refuses to give answer or gives false answer shall be punishable with a fine of Rs . 500

Whoever  Willfully obstructs an inspector from doing his duty  Refuses to provide reasonable facility for doing inspection , examination  Willfully refuses to provide registers or documents  Prevents an employee from appearing befow inspector shall be punishable with fine of Rs 500  If found guilty of same offence second time , punishable with imprisonment upto 3 months or fine of 1000 or both .

Thank you