Chapter 1 Introduction, Objects, (section 1 & 2) Applications and Definitions Chapter 2 Payment and (section 3 to 13) Deduction of wages Chapter 3 Authorities under the Act (section 14 to 19) Chapter 4 Miscellaneous (section 20 to 26)
. Short title, extent, commencement and1 application.- This Act may be called the Payment of Wages Act, 1936. 2. It extends to the whole of India.
In this Act, unless there is anything repugnant in thesubject or context, “EMPLOYED PERSON" includes the legalrepresentative of a deceased employed person; “EMPLOYER" includes the legal representative ofa deceased employer
“WAGES” means all remunerations capableof being expressed in terms of money, which would if theterms of the contract of employment, expressed of implied,were full filled, be payable to person employed irrespectiveof his employment or of work done in such employmentand includes house rent allowances.
Every employer shall be responsible for the payment topersons employed by him of all wages required to be paidunder this Act: Provided that, in the case of persons employed(otherwise than by a contractor)— (a) in factories, if a person has been named asthe manager of the factory under section 7 of the FactoriesAct, 1948. (b) in industrial or other establishments, ifthere is a person responsible to the employer for thesupervision and control of the industrial or otherestablishments.
(c) upon railways (otherwise than in factories),if the employer is the railway administration and therailway administration has nominated a person in thisbehalf for the local area concerned; the person so named, the person so responsible to theemployer, or the person so nominated, as the case may be,[shall also be responsible] for such payment.
Fixation of wage-periods.- (1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable. (2) No wage-period shall exceed one month.
Time of payment of wages.- The wages of every person employed upon or in— (a) any railway, factory or [industrialor other establishment] upon or in which less than onethousand persons are employed, shall be paid before the expiryof the seventh day, (b) any other railway, factory or[industrial or other establishment], shall be paid before theexpiry of the tenth day, after the last day of the wage-period inrespect of which the wages are payable.
Wages to be paid in current coin orcurrency notes. All wages shall be paid in current coin orcurrency notes or in both
(1) No fine shall be imposed on anyemployed person save in respect of such acts and omissions on his partas the employer, with the previous approval of the State Governmentor of the prescribed authority, may have specified by notice under sub-section (2). (2) A notice specifying such acts andomissions shall be exhibited in the prescribed manner on the premisesin which the employment is carried on or in the case of personemployed upon a railway (otherwise than in a factory), at theprescribed place or places.
(3) No fine shall be imposed on anyemployed person until he has been given an opportunity of showingcause against the fine, or otherwise than in accordance with suchprocedure as may be prescribed for the imposition of fines. (4) The total amount of fine which maybe imposed in any one wage-period on any employed person shall notexceed an amount equal to [three per cent.] of the wages payable tohim in respect of that wage-period. (5) No fine shall be imposed on anyemployed person who is under the age of fifteen years.
Sec 7(1) says that every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be deduction from wages. It also lays down that any loss of wages resulting from any imposition, upon a person, shall not be deemed to be a deduction from wages.
(1) Deductions may be made undersection 7 only on account of the absence of an employed person fromthe place or places where, by the terms of his employment, he isrequired to work, such absence being for the whole or any part of theperiod during which he is so required to work. (2) The amount of such deduction shallin no case bear to the wages payable to the employed person in respectof the wage-period for which the deduction is made a largerproportion than the period for which he was absent bears to the totalperiod, within such wage period, during which by the terms of hisemployment, he was required to work:
A deduction under section 7 shall not exceed theamount of the damage or loss caused to the employer by the neglect ordefault of the employed person. A deduction shall not be made under (2) ofsection 7 until the employed person has been given an opportunity ofshowing cause against the deduction, or otherwise than in accordancewith such procedure as may be prescribed for the making of suchdeductions.
All such deductions and all realizationsthereof shall be recorded in a register to be kept by the personresponsible for the payment of wages under section 3 in such form asmay be prescribed.
A deduction of section 7 shall not bemade from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him, as aterm of employment or otherwise, and such deduction shall notexceed an amount equivalent to the value of the house-accommodationamenity or service supplied .
Deductions under section 7 shall be subject to the following conditions, namely:-- (a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for travelling expenses; recovery of an advance of money given after employment began shall be subject to such conditions as the State Government may impose; (b) recovery of advances of wages not already earned shall be subject to any rules made by the State Government regulating the extent to which such advances may be given and the installments by which they may be recovered.
Deductions for recovery of loansgranted under section 7 shall be subject to any rules made by the StateGovernment regulating the extent to which such loans may be grantedand the rate of interest payable thereon.
Deductions under section 7 shall besubject to such conditions as the State Government may impose.
Inspector [sec 14] An Inspector of factory appointed under sec 8(1) of Factory Act shall be an Inspector for the purpose of this Act in respect of all factories within the local limits of assigned to him.
Sec 20(1) of the act makes contravention of the provisions of the Act, by any person responsible for the payment of wages to an employed person, punishable with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees.
Any contract or agreement, whethermade before or after the commencement of this Act, whereby anemployed person relinquishes any right conferred by this Act shall benull and void in so far as it purports to deprive him of such right.