General introduction to THE PAYMENTS OF WAGES ACT, Slides of Labour Law

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Presented by

Bartakke Akanksha Dhananjay

Diploma In Labour Law

Ismailsaheb Mulla Law College ,Satara

Year 2016 -

Introduction

Object of the act

Applicability of the act

Definitions

Rules for payment of wages (sec 3 to sec 6)

• Responsibility for payment of wages (S.3)
• fixation of wage - periods (s.4)
• Time of payment of wages (S.5)
• Mode of payment of wages (S.6)

The Payment Of Wages Act 1936 was come in to the force

on 23

rd

April 1936.This Act was passed to regulate the

payment of wages for certain classes of persons employed

in industry. It ensures payment of wages in a particular

form and at regular intervals without unauthorized

deductions. The Act extends to whole of India sec. 1(2). It

was extended to Jammu and Kashmir by the Central

Labour Law (Extension to Jammu and Kashmir) Act

To Regulate the payment of wages to certain class of

employed person.

Regulation completed by the Act is to fold :

1. The date of payment of wages.

2. The deduction from wages whether fine or otherwise.

To ensure payment of wages to persons who covered by

the Act certain provisions have been made in this Act.

1. Employed Person [sec 2 (i)] - Employed Person includes the legal representative of a deceased employed person. 2. Employer [sec 2 (i-a)] - The term Employer includes the legal representative of a deceased employer.

3. Factory [sec 2 (i- b)]

“Factory" means any premises including the precincts thereof- (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,- but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place; .

4. Industrial and other establishment [sec. 2 (ii)] -

means any,

(a) tramway service or motor transport service engaged in carrying passengers or goods or both by road for hire or reward; aa) 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; (b) Dock wharf or jetty; (c) inland vessel mechanically propelled; (d) mine quarry or oil-field; (e) plantation;

(f) workshop or other establishment in which articles are produced adapted or manufactured with a view to their use transport or sale; (g) 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; (h) 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 Gazette.

(d) any sum which by reason of the termination of employment of the person employed is payable under any law contract or instrument which provides for the payment of such sum whether with or without deductions but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include - (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court;

(2) the value of any house-accommodation or of the supply of light water medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government; (3) any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).

e) In case of Contractor –

A person appointed by contractor who is directly under his

charge

f) In other Cases-

A person appointed by employer

According to Sec 4 of the Act a Wage Period must not

exceed one month.

B) Wages in case of Termination of Employment –

1.Before the expiry of the 2

nd

working day from the day

on which his employment is terminated.

2. In case of closure of the establishment for any reason

other than a weekly or other recognized holiday a

wages must be paid before the expiry of the 2

nd

day

from the day on which his employment is terminated.

C) Exemption –

If the State Government may given general or special

order ,exempt the person responsible for the payment

of wages from the operation of the above provisions

in certain case.

D) Wage To be paid on a working Day –

Except under sub– section 2 all payments of wages

must be made on a working day