procedure to payment of wages

1. Procedure to payment of wages

2. • The Payment of Wages Act, 1936 is a crucial legislation that regulates the payment of wages to
certain classes of persons employed in industry. Let’s delve into its key aspects: 1. Object of the
Payment of Wages Act, 1936: The primary objective of this Act is to ensure timely payment of
wages to workers without any unauthorized deductions. It guarantees that wages are paid promptly
and without undue deductions, except those authorized under the Act. The Act covers various
aspects, including responsibility for payment, wage period fixation, mode of payment, permissible
deductions, and machinery for resolving complaints related to wage deductions or delays. Notably,
the Act does not apply to individuals whose monthly wage exceeds Rs. 24,000. 2. Definitions:
Employed person: Includes the legal representative of a deceased employed person. Employer:
Includes the legal representative of a deceased employer. Industrial or other establishment:
Encompasses factories, railways, and specified establishments. 3. Key Provisions: Fixation of wage
period: Employers must determine the wage period (e.g., weekly, monthly) for payment. Time of
payment: Wages must be paid within a specified time frame (e.g., 7th day after the wage period
ends for establishments with fewer than 1,000 employees). Mode of payment: Wages should be
paid in current coins or currency notes. Permissible deductions: The Act outlines acceptable
deductions, including fines, absence from duty, damages, services rendered, and loan recovery.
Rights of Inspector: Inspectors appointed under the Act have specific rights and responsibilities.
Appeal: Workers can appeal decisions related to wage disputes. Penalty for offenses: The Act
prescribes penalties for violations. Contracting out: Workers cannot waive their rights conferred by
the Act . 4. Recent Developments: The Code on Wages, 2019 has replaced several labor laws,
including the Payment of Wages Act. It aims to simplify wage-related regulations and enhance
workers’ rights. The Act continues to play a crucial role in ensuring fair wages and timely payments
to workers across various industries in India