The Payment of Wages Act 1936

The Payment of Wages Act 1936

Objectives
- To ensure regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. Scope and coverage - Application for payment of wages to persons employed in any factory. - Not applicable to wages which average Rs 1600/- per month or more.- Wages include all remuneration, bonus, or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, etc. Main provisions- Responsibility of the employer for payment of wages and fixing the wage period.- Procedures and time period in wage payment. - Payment of wages to discharged workers. - Permissible deductions from wages. - Nominations to be made by employees. - Penalties for contravention of the Act.- Equal remuneration for men and women.- Obligations and rights of employers. - Obligations and rights of employees.When to consult and refer
- Deciding wages and salary administration at all times.

THE PAYMENT OF WAGES ACT, 1936
ACT NO. 4 OF 1936 1*
[23rd April, 1936.]


An Act to regulate the payment of wages to certain classes of 2*[employed persons].
WHEREAS it is expedient to regulate the payment of wages to certain classes of 2*[employed persons];

It is hereby enacted as follows –
1. Short title, extent, commencement and application.
2. Definitions
3. Responsibility for payment of wages.
4. Fixation of wage-periods.
5. Time of payment of wages
6. Wages to be paid in current coin or currency notes.
7. Deductions which may be made from wages
8. Fines.
9. Deductions for absence from duty
10. Deductions for damage or loss.
11. Deductions for services rendered.
12. Deductions for recovery of advances
13. Deductions for payments to co-operative societies and insurance schemes.
14. Inspectors
14A. Facilities to be afforded to Inspectors.
15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims
16. Single application in respect of claims from unpaid group.
17. Appeal
17A. Conditional attachment of property of employer or other persons responsible for payment of wages.
18. Powers of authorities appointed under section 15
19. [Power to recover from employer in certain cases.]
20. Penalty for offences under the Act.
21. Procedure in trial of offences
22. Bar of suits.
22A. Protection of action taken in good faith.
23. Contracting out.
24. Application of Act to railways, air transport services, mines and oilfields.
25A. Payment of undisturbed wages in cases of death of employed person.
26. Rule-making power.

THESE ARE THE SALIENT FEATURES WITH THEIR SECTIONS OF THE PAYMENT OF WAGES ACT 1936

Payment Of Wages Act, 1936
Applicability
i) Every person employed in any factory, upon any railway or through subcontractor in a railway and a person employed in an industrial or other establishment.
ii) The State Government may by notification extend the provisions to any class of person employed in any establishment or class of establishments.

Eligibility
Every person who is employed in any of the above mentioned establishments and who is drawing less than Rs. 1,600 per month.
Benefits :
the Act prescribes for
i) The regular and timely payment of wages (on or before 7th day or 10th day after last day of the wage period in respect of which the wages are payable)
ii) Preventing unauthorised deductions being made from wages and arbitrary fines.

Penal Provisions
Penalties are from Rs. 200-1000. Repeat offenses attract 1 to 6 months imprisonment and fine from Rs. 500-3000.Delay wage payments attract penalty of Rs. 100 per day of delay.

Minimum Wages Act, 1936

Applicability
Any person who directly or through another person, whether for himself or for any other person employs one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act.
Eligibility
Any person who is employed for hire or reward to do any work in a scheduled employment and includes an outdoor worker to whom any articles or materials are given for either doing some work either at home or at any other premises.
Benefits
The Act prescribes the minimum rates of wages payable to employees for different scheduled employment for different class of work and for adults, adolescents, children and apprentices depending upon different localities.