Table of Contents
THE PAYMENT OF WAGES ACT, 1936
Structure of the lesson Object and scope a
- Application of the Act
- Important Definitions
- Responsibility for the payment of wages
- Fixation of Wage period
- Time of payment of Wages
- Payment of wages to persons whose employment is terminated
- Exemption from compliance with the time limit for payment of wages
- Wages to be paid on a working day
- Modes of payment of wages
- Deductions from wages
- Deductions for absence from duty
- Deductions for damage or loss
- Deductions for services rendered
- Deductions for recovery of advances
- Deductions for recovery of loans
- Deductions for payments to co-operative societies and insurance schemes
- Maintenance of Registers and Records
Object and scope of the Act
The main objects of the payment of wages Act are:
- To make sure, regular and timely payment of wages to the empioyess,
- To check unlawful deductions being made from wages and illogical fines be imposed on the employed
The scope of the Act extends to the whole of India.
Application of the Act
Business Low Notes :-
The act applies to the payment of wages to persons employed in any factory, to persons employed (otherwise than a factory) upon any railway by railway administration, or to persons employed in an industrial or other establishment specified under Section 2 of the Act.
The State Government may, after giving three months’ notice of its intention of so doing, by notification in the Official Gazette, extend the provisions of this Act or any of them to the payment of wages to any class of persons employed in any establishment or class of establishments specified by the Central Government or a State Government under section 2(ii) (h) provided that in relation to any such establishment owned by the Central Government no such notification shall be issued except with the concurrence of that government.
The Act shall be applicable if the wages for the wage period to an employed person do not exceed Rs. 6000 or such higher sum which the central government may stipulate.
Important Definitions Section 2 : Employed person
Employed person includes the legal representative of a deceased employed person.-Section
Employer includes the legal representative of a deceased employer. The liability of the employer’s legal representative for the payment of wages due to the employed persons i$ limited to the extent of the value of the property inherited by him. Section 2(ia)
Factory means a factory as defined in section 2(m) of the Factories Act, 1948 and includes any place to which the provisions of that Act have been applied.
Industrial and other establishments
Industrial or other establishment means any—
- tramway service , or motor transport service engaged in carrying passengers or goods or both by road for hire or reward;
- air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India;
- dock, wharf or jetty;
- inland vessel, mechanically propelled;
- mine, quarry or oil-field;
- workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale;
- establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation, or to the supply of water or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on.
- any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official