HARSHITA PARASRAMPURIA

17009
• "Weekly Payment Bill“

• The Payment Of Wages Act 1936 came into the force on 23rd April 1936.

•The Act extends to whole of India sec. 1(2). It was extended to Jammu and Kashmir by
the Central Labour Law (Extension to Jammu and Kashmir) Act 1970.

• This act applies to employed persons drawing average wages not exceeding Rs.
10,000/- Per Month.

• 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.
(1) This Act may be called the Payment of Wages Act, 1936.
{ Subs. by the A.O.1950 for sub-section (2).}

(2) It extends to the whole of India { Subs. by Act 3 of 1951, s.3 and Sch., for
"except Part B States".} [except the State of Jammu and Kashmir].

(3) It shall come into force on such {28th March, 1937: see Gazette of India, 1937,
Pt.I, p.626.}date as the Central Government may, by notification in the Official
Gazette, appoint.
 (4) It applies in the first instance to the payment of wages to persons
employed in any factory and to persons employed (otherwise than in a
factory) upon any railway by a railway administration or, either directly or
through a sub-contractor, by a person fulfilling a contract with a railway
administration.

(5) The State Government may, after giving three months' notice of its
intention of so doing, by notification in the Official Gazette, extend the
provisions of the Act or any of them to the payment of wages to any class of
persons employed in any industrial establishment or in any class or group of
industrial establishments.

(6) Nothing in this Act shall apply to wages payable in respect of a wage-
period which, over such wage-period, average two hundred rupees a month
or more.
The following rules are given in the Payment of Wages Act:
(1) Employers cannot withhold the wages earned by workers nor can
they make any unauthorised deductions from the wages.
(2) Payments must be made before the fixed pay day after the wage
period.
(3) Fines can be imposed for only those acts of omission which have
been approved by the appropriate government.
(4) If the payment of wages is delayed or wrongful deductions are
made, the workers or their trade unions can file a claim.
(5) The payment of overtime in scheduled employment is governed
by the Minimum Wages Act, 1948.
(6) Wages should be paid according to the rules, as contained in the
Act.
WHAT IS WAGES ?
• Any remuneration payable under award or settlement between parties or order of a
court.
• Any remuneration to which the person employed is entitled in respect of overtime
work or holiday or any leave period.

“WAGES” Does Not Include:

• The bonus declared voluntarily on the basis of profits and the bonus which does not
form part of the remuneration payable under the terms of employment.
• The value of any house accommodation, of the supply of water, light, medical
attendance or other service.
• Any contribution paid by the employer to any pension and provident fund.
• Any travelling allowance.
• Any gratuity payable on the termination of employment.
• Whether house rent are wages depend upon the terms of the contract. It is so, if its
payment is compulsory otherwise not.
• The term “wages” means wages earned not the potential wages.
RESPONSIBILITY FOR PAYMENT OF WAGES :-

• In factory, the person named as manager.

• In industrial establishment, supervisor.

• Upon railways the person nominated by the railway administration in this behalf for
the local area concerned.

TIME OF PAYMENT OF WAGES :-

• Wages must be paid before the expiry of the seventh day after the last day of the
wage period.

• Wages must be paid before the expiry of the tenth day after the expiry of the wage
period.

• When the employment of any employer is terminated, wages are paid before the
expiry of second working day from the day on which employment is terminated.

• If the employment is terminated due to closure of establishment for any reason

other then a weekly or other recognized holiday, wages will be paid before the expiry
of second working day.
Deductions From Wages (Fines)
• No fine shall be imposed on any employed person, except in acts with the approval of state
government.

• Until he has given an opportunity of showing cause against the fine.

• Person who is below the age of 15 years.

• Every fine shall be deemed to have been imposed on the day of the act or omission.

Deductions From Wages Deduction (for absence from duty)

• Deduction may be made on account of absence from the duty.

• Any employed person shall be deemed to be absent from duty if, though present at the work
place, he refuse to carry out his work or for any other cause which is not reasonable.
Deductions From Wages Deductions (for damage of loss )
• Deductions for damage to or loss of goods, or the loss of money which he is required to
account for can be made.

• Deductions shall not exceed the amount of damage or loss caused to the employer by his
neglect.

• All deductions and realizations are recorded in a register.

Deductions From Wages Deductions (for accommodation and service)

• Deductions cannot be made unless such services have been accepted by the employed person
as the term of his employment.

• Service do not include supply of tools and raw materials required for purposed of
employment.

• State government are empowered to make rules governing deductions for services.
Penalties that can be imposed on employers for contraventions of any provisions
of the Wages Act

•Offences of employers such as paying his employees less than the minimum
wages fixed to his class of work or fails to pay them overtime wages and for work
done by them on the day of rest, etc. is punishable under Section 22 of Minimum
Wages Act, 1948 by imprisonment upto six months or fine or both.

• Section 22 B provides that cognizance of offence should be taken only when the
Authority under Section 20 of the Act sanctions the application and the
appropriate Government gives its sanction to file a complaint.

•Section 22 C of the act clarifies who could be held guilty in case the employer
happens to be an incorporated body, firm, association of persons, etc.

•Section 22 D deals with the case of payments found due to an employee who is
dead or not traceable.