OBJECTIVES OF THE ACT

Regulating payment of wages, imposition of fines and

deduction from wages. Eliminating all malpractices by laying down wage periods and time and mode of payment of wages.

This act provides for a speedy and effective remedy to the employees in respect of their claims arising out of illegal deductions or unjustified delay made in paying wages to them.

APPLICATION OF THE ACT

This act extends to whole of India. It came into force on 28th March, 1937. This act applies to: Persons employed in any factory, Persons employed upon any railway (by railway administration or through a sub-contractor) Persons employed in an industrial or other establishment

The wage limit for the applicability of the act is Rs.1600 per month.

DEFINITIONS
Factory
Industrial or other establishment

Wages (does not include any bonus,

any value of house accommodation, T.A., gratuity etc.)

RULES REAGADING PAYMENT OF WAGES

Persons responsible to pay wages
Fixation of wage period Time of payment of wages Wages to be paid in current coins or

currency notes

DEDUCTION FROM WAGES

Every payment made by an employed person to the employer or his agent is treated as a Deduction from wages. List of authorized or permissible deductions: 1. Deduction for fines 2. Deduction for absence from duty 3. Deduction for damage or loss 4. Deduction for house accommodation 5. Deduction for amenities and services

DEDUCTION FROM WAGES

6. Deduction for recovery of advances or for adjustment of over payment of wages 7. Deduction for recovery of loans granted for house building etc. 8. Deduction for payment to cooperative societies and insurance schemes 9. Deduction of income tax 10. Deduction made under orders of court 11. Deduction for contribution to provident fund 12. Deduction in respect of fees payable for the membership of trade union 13. Deduction for contribution to Prime Ministers National Relief Fund.

DEDUCTION FROM WAGES

Deduction for fines a) Approval of list of acts or omissions b) Display of notice c) An opportunity of showing cause d) Amount of fine e) Age limit for imposition of fine f) Not recoverable by installments or after undue delay g) Day of imposition of fine h) Maintenance of special register i) Application of the fund

Permissible total deductions

MAINTENANCE OF REGISTERS AND RECORDS

Every employer shall maintain records and registers containing the required information. Record shall contain following particulars: Particulars of persons employed, The work performed by the persons employed, The wages paid to them, Deductions made from their wages, Receipts given by them, and Such other particulars

AUTHORITIES UNDER THE ACT

Inspectors

Powers of Inspectors

CLAIMS ARISING OUT OF DEDUCTION FROM WAGES OR DELAY IN PAYMENT OF WAGES

Authority to hear claims

1. a presiding officer of any Labour Court or Industrial Tribunal 2. any commissioner for workmens compensation 3. other officer with experience as a judge of Civil court Jurisdiction of the authority Presentation of application

CLAIMS ARISING OUT OF DEDUCTION FROM WAGES OR DELAY IN PAYMENT OF WAGES

Procedure

Powers of authorities appointed

Single application in respect of claims from unpaid

group Conditional attachment of property of employer

OFFENCES AND PENALITIES

OFFENCES PENALITIES 1. Delay in or non-payment of wages within prescribed time Fine up to Rs. 1,000

2. Making any unauthorized deduction or imposition of fines in contravention of the act

3. Failure to fix the wage period or make payment of wages on a working day and in current coins or notes. 4. Failure to maintain registers of fines and deductions or display of prescribed notices 5. On repetition of same offence.

-------do-------Fine up to Rs. 500 ----------do--------Imprisonment upto 6 months and fine up to Rs. 3,000