Inquiry on Withholding Increment and Legal Implications
Please enlighten on the following:
1. Can we withhold the increment of a worker for one year due to his misconduct (proved in an inquiry), and does it have a legal basis?
2. Explain fines subject to the provisions of the Payment of Wages Act for misconduct.
Regards,
Sacheein
From India, Mumbai
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12Please enlighten on the following:
1. Can we withhold the increment of a worker for one year due to his misconduct (proved in an inquiry), and does it have a legal basis?
2. Explain fines subject to the provisions of the Payment of Wages Act for misconduct.
Regards,
Sacheein
From India, Mumbai
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All this should happen within the Standing Orders of your concern. The Payment of Wages Act, 1936, Section 8 provides for it.
Fines Under the Payment of Wages Act, 1936
8. Fines:
1. No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under subsection (2).
2. A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried out or, in the case of persons employed on a railway (other than in a factory), at the prescribed place or places.
3. No fine shall be imposed on any employed person until he has been given an opportunity to show cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
4. The total amount of fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to three percent of the wages payable to him in respect of that wage period.
5. No fine shall be imposed on any employed person who is under the age of fifteen years.
6. No fine imposed on any employed person shall be recovered from him by installments or after the expiry of sixty days from the day on which it was imposed.
7. Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
8. All fines and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under Section 3 in such form as may be prescribed; and all such realizations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
Explanation: When the persons employed on or in any railway, factory, or industrial or other establishment are part only of a staff employed under the same management, all such realizations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.
It will be a 3% cap on Monthly Salary.
Regards,
Rajan Law Firm
Please see https://www.citehr.com/285737-legal-...-industry.html
From India, Madras
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Fines Under the Payment of Wages Act, 1936
8. Fines:
1. No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under subsection (2).
2. A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried out or, in the case of persons employed on a railway (other than in a factory), at the prescribed place or places.
3. No fine shall be imposed on any employed person until he has been given an opportunity to show cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
4. The total amount of fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to three percent of the wages payable to him in respect of that wage period.
5. No fine shall be imposed on any employed person who is under the age of fifteen years.
6. No fine imposed on any employed person shall be recovered from him by installments or after the expiry of sixty days from the day on which it was imposed.
7. Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
8. All fines and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under Section 3 in such form as may be prescribed; and all such realizations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
Explanation: When the persons employed on or in any railway, factory, or industrial or other establishment are part only of a staff employed under the same management, all such realizations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.
It will be a 3% cap on Monthly Salary.
Regards,
Rajan Law Firm
Please see https://www.citehr.com/285737-legal-...-industry.html
From India, Madras
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SELF-CERTIFICAT E PROFORMA FOR I.T. (HARDWARE) UNITS UNDER THE PAYMENT OF WAGES ACT, 1936.doc