PAYMENT OF WAGES ACT, 1936

Responsibility for payments of wages

Every employer (or contractor) is responsible for the payment to persons employed by him.

Fixation of wage period

Employer or contractor shall fix period during which the wages must be paid. No wage-period shall exceed one month.

Medium of wages
Wages shall be paid in current coin or currency notes or in both.

Deduction from wages

Employer shall pay wages to employed persons without any deduction but except:  Fines  Deduction for damage to or loss of goods  Deduction for loss of money  Deduction for house accommodation

Cont

 Deduction for amenities and services  Deduction for recovery of advances or adjustments of overpayments of wages  Deduction of income tax  Deduction required to be made by order of a court or other authority.

Ammara

Fines:
 Prepare the list of acts and omissions  Display of list  Opportunity of being heard  Total amount of fine  Under age employees  Installments of fine  Expiry date of fine  Maintenance of register

Deduction for absence from duty

 Absence from required date  Amount of the deduction  Joint absence

Deduction for damage and loss

 Amount of the damage  Opportunity of being heard  Maintenance of register

Deductions for services rendered

Deduction for :

House accommodation  Amenity or service supplied  Term of employment

Ahmed

Deduction for recovery of advances

 For newly employed persons  For already employed persons

Deduction for payments to cooperative societies and insurance scheme

Any cooperative society or insurance scheme provided by wapda, sui northern, university etc.

Claims out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims

Claims of payment of wages:

Claims

Wrongful deduction from wages

Delay in payment of wages

Cont.

Auth rity t c tract f r th clai s

issi

Any p rs n f having xp ri nc f civil c urt judg r a stip ndiary agistrat

Claims could be taken to aut ority by

Legal practioner Employee imself Official of registered

inspector

Any ot er person

Claim must be taken to aut ority wit in period of 3 years and if time exceed t en t ere must be valid reason for t at

The proceedings of claims cases will be conducted by giving opportunity of being heard to both parties

If employer prove to be guilty then punishments will be

Delay in payment of wages

For wrongful deduction

Original amount + upto ten times the amount deduction

Original amount + upto Rs. 10

In case if employer proves to be nonguilty then there will be no punishments but reason must be
Failure of worker to apply for payment

Bona fi e error

Occurrence of an emergency to person who responsible for the payment

Penalty for malicious or vexatious

Not exceeding 50 rupees

 Paid to the employer or other person responsible for payment.  Magistrate or any other authority cover this claim.  If worker have not such amount of penalty then sale the property of worker and then amount will be recover.