How Can the Payment of Wages Act Help Construction Employees Facing Delayed Salaries?

Dear seniors, I have some queries regarding the Payment of Wages Act as follows.

Some of my friends are working in a construction-based private ltd company. They are drawing a salary range between ₹20,000/- to ₹30,000/- as per their designations, which fall under the supervisor and above category (like Site Engineers, Admin/HR/Accounts Officers, & Site Supervisors).

The issue is they are not receiving their salary on a monthly basis. As it's a construction-based company, they have to get their BILL AMOUNT from the client, and only after that will the management release the due payable amounts. However, they claim the bill quarterly, sometimes even more than that.

As a result, the employees receive their salary once every 2 or 3 months. Sometimes one month's salary is due, sometimes they receive the total salary payable amount, and sometimes the company holds 1 or 2 months' salary based on payable months.

Payment of Wages Act and Employee Protection

In the above case, how can the Payment of Wages Act help those employees, as they are above the slab of ₹18,000/-? (As per the PWA, salaries must be paid on or before the 7th of every month in cases of less than 500 employees.) Is there any law to protect or support them? They are not receiving PF & ESI as they are above the slabs. The company only has WCP. What kind of benefits do they get from WCP if they encounter any accidents or health issues?

Kindly suggest.

Thanks & regards,

Vishwanadh.

Thank you for your reply. This construction company falls under the S&E Act. They undertake various projects all over India and secure projects through tenders. GAIL, IOCL, BGL, and RIL are among their clients.

Understanding the Wages Act for Different Employee Types

The Wages Act hardly has anything to do with it. There is a difference between regular employees and commission-based workers. If they are commission-based workers, then they will be under the umbrella of the establishment for recognition purposes only. This gives them the authenticity to deal with business matters. Other than that, it is just the give-and-take system they practice. If they are regular employees, you need to go through the employment agreement for accurate details. Ask your friend for a copy of it, and you will know the terms and conditions, payment details, etc.

Sometimes developers pay their employees once every two or three months when they are undergoing losses. This was common in the past three years, but now it's improved. Most establishments clearly mention that you can earn only when you can sell. So, if you want specifics, it is inevitable to go through the agreement. Payments also differ based on the kind of job they perform. For purely commercial roles, it's mostly commission. For legal, HR, or Administration roles, they usually pay a fixed amount plus incentives. This has nothing to do with the type or identity of the clients of the establishment; it's purely a different aspect.