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    Payment of Wages Act 1936

     

     

     

     

     

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    Payment of Wages Act 1936

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    Payment of wages act

    Payment of Wages Act 1936

    INTRODUCTION

    To ensure good life and better living standards for all the wage earners, two of the popularly heard act came into existence i.e. The Minimum Wages Act 1948 and The Payment of Wages Act 1936. The Minimum Wages Act was introduced later in order to provide a fixed amount of wages to all the employees or workers. And the act that came earlier was the Payment of Wage Act, which was introduced before the Minimum Wages Act to ensure the timely transfer of wages to all the employees. The particular act came across with many amendments to make sure all the workers are getting the minimum wages timely that helps them to support their families.

    Read more to learn about other important provisions of The Payment Wages Act 1936.

    APPLICABILITY

    The Payment of Wages Act 1936 is applicable on persons who are employed in any factory, to persons employed as railway administrator or either directly or through a subcontractor, by a person fulfilling a contract with railway administration, and to persons employed in an industrial or other establishment specified.

    The Payment of Wages Act has been established with the objective to ascertain the position with regard to delay made in the payment of wages to employees and impose fines on the employers making delay in doing so. It is an act passed by the Legislative Assembly and received its assent on 23rd April 1936.

    MODE OF PAYMENT

    The payment of wages to be paid shall be made in current coin or currency notes or in both. It means that the payment of wages cannot be made in kind. However, after obtaining written authorization from the employee, the employer can make the payment of wages either by cheque or by crediting the wages in his or her bank account.

    TIME OF PAYMENT

    The wages of every person employed upon or in-

    1. any railway, factory or industry or any other establishment upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day;
    2. any other railway, factory, industry or establishment must be paid before the expiry of the tenth day,

     after the last day of the wage-period in respect of which the wages are payable.

    COMPLIANCE

    The employers are required to follow the compliances of the Payment of Wages Act, 1936 which includes maintaining registers and records containing information of the employees working. Along with the detail of the wages paid to them, the deduction made from their wages, and the receipts given.

    It is necessary for every employee to maintain the registers and records for a period of three years after the date of the last entry made therein.

    ALLOWED DEDUCTIONS

    These are the following deduction that are permitted to be deducted from the salary or wages of an employee under the Payment of Wages Act 1936. The allowed deductions are:-

    • fines;
    • deduction for absence from the duty;
    • deduction for the damage to or loss of goods of employed person;
    • deduction for house accommodation supplies by the employer;
    • deduction for the amenities and service supplied by employer;
    • deduction for recovery of advances and interest, and adjustment of overpayment;
    • deduction for recovery of loans from any fund constituted for the welfare of labour;
    • deduction for income tax payable by the employed person;
    • deduction on orders of a court or other authority;
    • deduction for subscription and repayment of advance from any Provident Fund;
    • deduction for payments to cooperative societies;
    • deduction of premium for LIC policy on written authorization of the employed person; or any other investment for Post Office Saving Scheme

    PENAL PROVISION

    As per the Payment of Wages Act 1936, if the person responsible for making payment of wages to the employees commits or contravenes any law, then the penal provision shall be applicable. It states that person doing so shall be punishable with a fine which shall not be less than two hundred rupees, but which may extend to one thousand rupees or five hundred rupees.

    In addition to it, where the person responsible for maintaining registers and records,

    1. fails to do so; or
    2. willfully refuses or without lawful excuse neglects to furnish information; or
    3. willfully furnishes or return which he knows to be false or refuses to answer ;or
    4. refuses to answer or willfully gives a false statement to any question necessary for obtaining any information required to be furnished under the Act;

    shall also be responsible to pay for it. The defaulter shall be punishable with fine which shall not be less than two hundred rupees but may further extend to one thousand rupees.

    Furthermore, if someone intentionally obstructs the inspector from performing his duty; or refuses or willfully ignores to afford an inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorised by or under this Act in relation to any railway, factory or other establishment; or purposely doesn’t present the document asked by the inspector; or prevents or attempts to do anything which has reasons to believe that he is likely to prevent any person from appearing before or being examined by an inspector acting in pursuance of his duties

    Shall be punishable with a fine which shall not be less than two hundred rupees but may be extended to one thousand rupees.

    Where the person is convicted of offence and being punished for the same is feeling guilty of the offence committed involving contravention of it then, the person shall be on subsequent conviction with imprisonment for a term which shall not be less than one month but can be extended to six months and with fine not less than five hundred rupees which can further be exceeded to three thousand rupees.  

    And lastly, if any person fails or willfully neglects to pay the wages to the employee by the date fixed by the employer, he shall then, without prejudice to any other action against him, be punishable with an additional fine of rupees one hundred for each day for the failure or neglect that continues.

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    Answer to your queries

    Payment of Wages Act 1936

    All the persons employed, directly or indirectly or through contractors, in a factory or certain specified industry or establishment, all of them are covered under the Payment of Wages Act.

    Every employer is responsible to make payment of the wages to the employees within a month. As no wage period can exceed the time of one-month as per the laws. However, the employer can decide in advance the time of making payment. The payment of wage can be made on daily basis or weekly or fortnightly or monthly basis.

    The main objective of the payment of wages act is to make sure that there is no unnecessary delay made while making payment of wages to the employees working. And also, to avoid the employer from making any unauthorized deductions from the wages paid.

    Wage period is defined as a term which does not exceed 1 month and the contract of service states the payment of wages that is payable. It is a period when the employee gets paid or you can say the income is transferred to the employee for the work done.

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