Payment of Wages Act 1936 Plan of presentation

Payment of Wages Act, 1936

Plan of presentation n n n Definition of “wages” Introduction Objectives Scope Methods Provisions

Wages n n 1. 2. 3. 4. 5. “Wages” has been defined as all remuneration (whether by way of salary, allowances or otherwise) Wages includes the following : Any remuneration payable under any award or settlement Payable in respect of overtime work or holidays. Payable under the terms of employment (bonus or incentives) Payable by the reason of termination Payable under any scheme framed by any appropriate law.

Introduction n n Wage labourers account for more than 75% to 85% of the total labour force. The earlier methods to determine wages are biased towards the employer. This unilateral action on the part of employers forced the state to legislate in order to regulate the mode and manner of wage payment. An act which regulate the payment of wages to certain classes of employed persons. to be contd…

Introduction n n The existence of evil practices such as less, non, irregular payments etc. was found by a committee appointed by govt. of India in 1925. With an intention to remove all those practices legislative proposals were formulated in 1928. These legislation were placed before Royal commission on labour in 1929. Then the Payment of wages act came in picture in 1936, the first legislation of its kind in India.

Objectives The objectives of the act are as follows : n Ensuring regularity of payment, n Ensuring payment in legal tender, n Preventing arbitrary deductions, n Restricting employers right to impose fines and n Providing remedy to workers

Scope The act applies to payment of wages to : n It extends to the whole of India n Persons employed in any factory n Persons employed in railway, tramway, motor transport, air transport, dock, mine, plantation, quarry, oil field, wharf, jetty, inland vessel, mechanically propelled, workshops, work relating to manufacturing or construction or production or maintenance and any other establishments which the central or state govt. specify by notice. n Presently the act does not apply to the wages which is Rs 6, 500 or more per month or in a wage period.

Methods Some of the methods are as follows: n Fix a wage period n Prescribe a manner for the payment of wages n Restricts the employers right to make any other deduction other than authorized. n The act provide for an inspectorate.

Provisions Every employer is responsible for payment of wages to persons employed by him directly or indirectly. n Wage period should be fixed, but no wage period should exceed one month. Time of payment of wages: n When in any kind of establishment the number of employed person is less than 1000 then wages should be paid within the first week. to be contd… n

Provisions … n n n When there is 1000 or more number of employees are working then it should be paid within 10 days. However, in the case of persons employed on a dock, wharf or jetty or in a mine wages found due on completion of the work and should be paid within 7 days from completion In case of termination the due wages is paid before the expiry of the second working day from the day of his termination. to be contd…

Provisions … n n All wages are to be paid in current coins or currency or in both. However if the worker permit then it can also be paid in the form of cheque or by crediting his ban account. Permissible authorized deductions are as follows fines, absence from duty, damage or loss, house accommodation or service rendered, recovery of advances or for adjustment of overpayments, recovery of loans, income-tax, order of the court, insurance schemes and co-operatives to be contd…

Provisions … n n Deductions on the written authorization by the employed person. Total amount of deductions should not exceed 75% of total wages where such deductions are wholly or partly made for payments to co-operative societies and 50% in other cases.

Miscellaneous Provisions n n n To appoint officers to hear and decide. Applicants must apply within 12 months if not then there should be sufficient cause for it. Conduct inquiries to solve the problems. There is right to charge penalties for nonpayment, failure or refusal to maintain required records, willfully obstructing the officers, repeat of an offence. Procedure in the trial of offences Payment of undisbursed wages in case of death.