PAYMENT OF WAGES ACT, 1936.

GROUP MEMBERS

Priyanka Banka Daniel Solomon Kartik Iyer Anurag Tiwari Tirtha Hegde Charmi shah Sneha Roshan Mishra Abhishek Tiwari Asha Nagrajan

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INDEX
2.Payment of wages and 1.Preliminary deductions Payment of wages act 3.Authorities under the act 4.Miscellaneous

PRELIMINARY

INTRODUCTION
Payment of Wages act, 1936, is a act to regulate the payment of wages of certain classes of employed persons.

OBJECTIVES
The main objective of the act is

To ensure regular and prompt payment of wages To prevent unauthorized deductions and arbitrary fines from the wages. To regulate the rate of payment for overtime work.

Section 1

APPLICABILITY
This act applies to

Persons employed in any factory. Persons employed upon any railways. Persons employed in any industrial or other establishment specified.

DEFINITIONS

Appropriate government [sec2(i)] Central government State government

Wages: [sec2(vi)]
Outline Type of remuneration Type of payment

Employed person: sec[2(ia)]

Includes the legal representative of a deceased employed person.

PAYMENT OF WAGES AND DEDUCTIONS

RESPONSIBILITY FOR PAYMENT OF WAGES: SEC(3) All employers are responsible to pay wages to any person employed by them. Ex: Factory manager Person responsible for supervision and control in industries Person nominated by railway administration Person under the charge of contractor

FIXATION OF WAGE-PERIOD : SEC(4)

Dates of payment should be fixed

Payment periods shouldnt exceed 1 month

TIME OF PAYMENT OF WAGES : SEC(5)

Wages should be paid within the wage period Payment may be in currency notes or coins , cheques or directly crediting of bank account

DEDUCTIONS WHICH MAY BE MADE FROM WAGES: SEC(7)

What is deduction???
Any loss/ lowering in wages due to: Absence Damage of goods in custody House accommodation Income tax loans Other amenities and service

SEC 8 : FINES

No fines shall be imposed on any employed person who is under the age of fifteen years .
A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of person employed upon a railway at the precribed place or places. No fines shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine ,or otherwise than in accordance with such procedure as may be prescribed for the imposition

SEC: 9 DEDUCTIONS FOR ABSENCE FROM DUTY

Deductions may be made under such clause (b) of subsection (2) of section 7 only on account of the absence of an employed person from place or places where bythe terms of his employment ,he is required to work , such absence being for the whole or any part of the period during which he is so required to work . The amount of such deductions shall in no case bear the wages payable to the employed person in respect of the wages period for which the deductions is made in a larger proportion than the period for which he was absent bears to the total period within such wage-period , duing which by the terms of his employement , he was required to work :

SEC 10: DEDUCTIONS FOR DAMAGES OR LOSS

Sec 1: Deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount or loss caused to employer by the neglect or default of the employed person.

SEC 11: DEDUCTIONS FOR SERVICES RENDERED

A deduction under clause (d) or clause (e) of subsection 7 shall not be made from the wages of an employed persons

SEC 12: DEDUCTIONS FOR RECOVERY FOR ADVANCES

Deductions under clause (f) of sub-sec (2) of sec 7 shall be subject to the conditions

SEC 12A: DEDUCTIONS FOR RECOVERY OF LOANS

Deductions for recovery of loans granted under clause fff of sub section (2) of sec 7 shall be subject to any rules made by appropriate government

AUTHORITIES..

INSPECTORS (SEC 14)

Inspectors are of 3 kinds

Inspector

of factories Inspector of railways Inspector appointed by SG in any industry

Powers of an inspector Facilities to be afforded to inspectors

AUTHORITY TO HEAR CLAIMS (SEC 15)

According to the specified area, the AG may appoint someone in authority to hear and decide the problems arising out of Deduction of wages Delay of payment

PRESENTATION OF APPLICATION

An application can be presented in case there has been

any

deduction contrary to the provision of this act Any delay in payment of wages contrary to the provisions of this act

This application needs to be filed within 12 months of the date of delay or deduction

SCOPE OF JURISDICTION (SEC 15)

The jurisdiction of the authority really is to determine the terms of the contract in so far as they relate to the payment of wages and in so far as he has to decide the liability of the employer to pay wages under the terms of the contract. But that jurisdiction does not extend to determine the questions as to whether the contract has been terminated as alleged by the employer or the contract is still subsisting as alleged by the survey.

SINGLE APPLICATION
Unpaid group
If there has been a delay or deduction in the payment of a group of employees(unpaid group), they can file in a single application.

State of U.P v. Presiding Officer, Payment of wages officer, Varanasi and others

APPEAL (SEC 17)

An appeal may be preferred from the following orders:

An order directing the employer or the persons responsible for payment of wages An order directing payment of compensation An order imposing penalty

MISCELLANEOUS.

REGISTERS AND RECORDS

Every employer is required to maintain a register containing

Employees Kind of work performed Wages Deductions Receipts

SEC 19 : POWER TO RECOVER FROM EMPLOYER IN CERTAIN CASES

Repealed by the Payment of Wages (Amendment) Act, 1964 (53 of 1964), w.e.f. 1st.February, 1965

PENALTY FOR OFFENSES (SEC 20)

The penalties are

For delaying payment of wages. For paying wages on a working day. For failure to maintain records. For obstructing inspectors. Subsequent offence.

PROCEDURE IN TRIAL (SEC 21)

No court shall take cognizance of a complaint against any person for an offence under subsection (1) of section 20 unless an application in respect of the facts constituting the offence has been presented under section 15 No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rule made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.

BAR OF SUIT (SEC 22)

No Court shall entertain any suit for the recovery of wages or of any deduction from wages in so far as the sum so claimed (a) forms the subject of an application under section 15 which has been presented by the plaintiff and which is pending before the authority appointed under that section or of an appeal under section 17; or (b) has formed the subject of a direction under section 15 in favour of the plaintiff; or (c) has been adjudged in any proceeding under section 15 not to be owned to the plaintiff; or (d) could have been recovered by an application under section 15.

SECTION 22A:PROTECTION OF ACTION TAKEN IN GOOD FAITH

No suit prosecution or other legal proceeding shall lie against the government or any officer of the Government for anything which is in good faith done or intended to be done under this Act.

CONTRACTING OUT (SEC 23)

Any contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.

DISPLAY BY NOTICE (SEC 25)

The person responsible for payment of wages to all employers have to ensure that All rules and notices should be displayed by the employer in a language understood by the majority.

PAYMENT OF UNDISBURSED WAGES (SEC 25-A)

If the wages to be paid to an employee cannot be paid due to Death or His whereabouts not being known The wages should be paid to the nominee or deposited with the prescribed authority.

RULE MAKING POWER (SEC 26)

The state government makes rules to regulate the procedures to be followed for the payment of wages and what needs to be done in case of any violation of the act.