The Payment of Wages Act 1936 by Kushagra Kulshreshtha

Evils of withholding wages Delay in payment, unreasonable deduction

 To regulate payment of wages in industry(DCosta A.V., GIP Rly. V. B.C. Patel, AIR (1955) S.C.
412 Milkhi Ram v. State of Punjab AIR, 1964 Armugham v. Jawahar Mills AIR (1956) Extent of the ACT:Whole India J & K by Act 1970 Application:Not application whose wages exceed 6,500/ month

Rules for payment of wages Sec 3 to 6

Responsibility for payment of wages sec 3: Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act: Except: In factories- Manager Industrial establishment- Supervision, control

 Railways- nominated by railways Contractor- person designated by contractor Any other case- Made responsible

Fixation of wage period(wage cycle):- Sec 4 1 month

 Time of payment of wages Sec 5: To be paid before 7th or 10th If no less than 1000 then 7th otherwise upto 10th Wages in case of employment: If employer terminated wages must be paid before the expiry of 2 days If terminated due to closuer to be paid expiry of 2 days.

Exemption:App. Govt. may exempt persons Wages to be paid on working days. Medium of payment of wages sec 6:-To be in current coin or currency or both. Acc. to payment of wages act 1976 obtaining the written consent may pay via cheque or a/c But then also inculcate banking habit among workers

Deduction from Wages Sec 7 to 13

Sec 7 Deduction which may be made from wages: Deductions for fines Sec 7 (2) (a) and 8:1. No fines unless prior approval of App. Govt. or the notice containing the acts of fines(by prescribed authority) 2. Notice specifying the acts or omission will be displayed in premises. 3. No fines imposed unless opportunity of showing case & completed 15 yrs age. 4. Total amount of fine in 1 wage cycle will not be more than 3 % of wages

 Shall not be recovered after expiry of 90 days. All fines to be recorded in register

Deductions for absence from duty:- Sec 7 (2) (b) & 9:1. If absent from place of work, from duty or any part of period during which he is so required to work. Sec 9(1)
Absence for whole day or part of day

 K.S.R.T Employees vs. General Manager KSRT 1985, strike by worker in a public utility , if absent in part of a day, without notice-deduction of full day will not be unjustified or illegal. However 10 or more acting in concert absent , no notice,Not exceeding 8 days.

Deduction for damage or loss Sec 7:- c, m,n o:1. Damage or loss of goods which expressly entrusted for custody or loss of money, shall not exceed the amount of loss. 2. No deduction until given show cause notice.

1. Failure to invoice, bill, collect , or to account appropriate charges.(Fares, freight, etc) 2. Acceptance of counterfeit or base coins. 3. Any rebate, refunds incorrectly granted.

Deductions for Services:- Sec 7 (2) (d) (e) and 11

1. Dedu. for house accommodation, 2. Amenities & Services supplied by employer but shall not be made from wages unless such condition accepted by employed person

 Dedc. For recovery of advances(2) (f) & 12:-Can be

made but following conditions:Advance of money before employment shall be from 1st salary but not for advance given for T.A. If advance after employment then can recover subject to condition impose by app. Govt. Recovery of advances of wages not yet earned shall be subject to rules by Govt. Deductions for adjustment of over-payment of wages is also authorised(M.G. Koshi v A.D Cotton Mills AIR 1959 Ker. 332)

 Deduction for recovery of loans: Deductions for payment to co-operative societies & insurance scheme:Other Deductions:Deductions of income tax If order of court or other competent authority. Payment to co-operative society Insurance policy Sustained losses Contribution to P.M National Relief fund Insurance scheme framed by App. Govt.

 Limit on deduction Sec 7(3) Not exceed 75% (co-operative society) Other cases max. 50%.

Excess may be recovered by as prescribed by govt. Application to be in 12 months Malicious or vexatious application:- fine

Dont forget to prepare for presentation.

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