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OBJECT OF THE ACT

To regulate the payment of wages to certain


classes of employed persons.
Two fold:- First the date of payment of wages
and Secondly the deductions from wages
whether as fine or otherwise.
APPLICABILITY OF THE
ACT

APPLICABILITY OF THE ACT Persons employed


in:- Any factory (a saw mill, ginning factory, go
downs, yards etc as defined in Factories Act,
1948).
Tramway service or motor transport service
engaged in carrying passengers or goods or
both by road
Air transport service Dock, Wharf or Jetty,
Inland vessel, mechanically propelled
Mine, quarry or oil-field plantation
Workshop or other establishment etc.
DEFINITIONS
WAGE includes any remuneration
Payable under any award or settlement between the
parties or order of a Court;
Over time work or holiday or any leave period;
Any additional remuneration under the terms of
employment.
Any sum which is payable on termination of
employment under any law, contract or instrument
without any time-limit for payment.

Wage does not includes any bonus, pension fund or


provident fund, traveling allowance and any gratuity.
WAGES TO BE PAID IN CURRENT COINS
OR CURRENCY NOTES :

a.All wages shall be paid in current coins or


currency notes or in both.
b. After obtaining the authorization, either by
Cheque or by crediting the wages in
employees banks Account {Section 6}
TIME OF PAYMENT OF
WAGES :
TIME OF PAYMENT OF WAGES T The wages of
every person employed is paid. When less than
1000 persons are employed shall be paid before
the expiry of the 7th day of the following month.
When 1000 workers or more than that , before
the expiry of the 10th day of the following
month. (Section 5).
COVERAGE OF
EMPLOYEES
Drawing average wage up to Rs.10000 pm as
amended with effect from 8th August, 2007.
DEDUCTION MADE FROM
WAGES
Deductions such as, fine, deduction for amenities
and services supplied by the employer, advances
paid, over payment of wages, loan, granted for
house-building or other purposes, income tax
payable, in pursuance of the order of the Court,
Provident Fund contributions, cooperative
societies, premium for Life Insurance, contribution
to any fund constituted by employer or a trade
union, recovery of losses, Employees State
Insurance contribution etc. (Section 7).
DEDUCTION FOR ABSENCE FROM
DUTIES FOR UNAUTHORISED
ABSENCE
DEDUCTION FOR ABSENCE FROM DUTIES FOR
UNAUTHORISED ABSENCE Absence for whole
or any part of the day If ten or more persons
absent without reasonable cause, deduction of
wages upto 8 days {Section 9}
DEDUCTION FOR
DAMAGE OR LOSS
For default or negligence of an employee
resulting into loss.
Show cause notice has to be given to the
employee.
{Section 10}
DEDUCTIONS FOR
SERVICE RENDERED
DEDUCTIONS FOR SERVICE RENDERED When
accommodation amenity or service has been
accepted by the employee.
{Section 11}
Deductions for recovery of Advance.(SECTION
12)

Deduction for recovery of loans. (SECTION


12A)

Deductions for payment to co-operative


societies and Insurance schemes. (SECTION
13)
AUTHORITIES UNDER
THIS ACT
AUTHORITIES UNDER THIS ACT
INSPECTORS.
AUTHORITY TO HEAR CLAIMS
Any commissioner for Workmens Compensation; or
Any Regional Labour Commissioner
Any Assistant Labour Commissioner
Presiding Officer of any Labour Court or Industrial
Tribunal.
APPEAL
An Appeal may be preferred from the following orders or directions
of the Authority:-
an order directing the employer or the persons responsible for
payment of wages, to refund the deductions wrongfully made or to
pay the delayed wages;
an order directing payment of compensation to the employee under
Section 15(3);
an order imposing penalty whether on the employee or the
employer under Section 15(4).

An Appeal can be made within thirty days of the date on which the
order or direction was made before the District Court within whose
jurisdiction the industrial establishment is situated.
MAINTENANCE OF REGISTERS AND
RECORDS
SINGLE APPLICATION IN RESPECT OF
CLAIMS FROM UNPAID GROUP
PENALITIES :
Makes contravention of Secs.5, 7, 9, 11 and
13 of the Act, by any person responsible for
the payment of wages to an employed person,
punishable with fine which shall not be less
than one thousand five hundred rupees
but which may extend to seven thousand five
hundred rupees.
PENALITIES
SECTION MATTER FINE(RS.) IMPRISONM BOTH
ENT

4,,6,8.10,25 3700 -- --
5 Late 1000- 7500
payment
3 3000 -- --
13 Maintance 1500 to -- --
of record 7500
Willful no 1500 to
cooperation 7500
to Inspector
repetition 3750 to 1 to 6 month
22500
20 Willfully 750 for each -- --
avoiding day
CHECKLIST FOR
MANAGER
Employer shall fix wage period
The statutory day for disbursing salary of a company
The payment of wages should be in coin or currency
The payment should be made on working day
The employer shall extend all co operation
necessary to the Inspectors for conducting enquiry
and afford all facilities to him for making entry,
Inspection, Supervision, Examination or Enquiry
under this act
The Employer shall display the notice
Maintance of records
Other forms
AMENDMENTS By
Maharashtra govt
The payment of wages to all labourers in the
organised and unorganised sector who are in
continuous employment and who have wages
of more than Rs 3,000 per month will now
have to be done through banks and cheques.

Source: Apr 30, 2010 times of india