Important Amendment to Payment of Wages Act, 1936
The Parliament of India widened the scope of the Payment of Wages Act, which would cover those drawing wages up to Rs 6,500/- a month against Rs 1600/- earlier with the government assuring that it would soon come forward with a measure aimed at the welfare of workers in the unorganized sector.
The Payment of Wages (Amendment) Bill that was earlier passed by the Rajya Sabha was adopted by the Lok Sabha on 17th August 2005.
With the passage of the bill, the salary and wages of workers would be protected, ensuring timely payment, and employers would not be able to make illegal deductions.
PAYMENT OF WAGES ACT, 1936- IMPORTANT POINTS TO NOTE
- It extends to the whole of India
- "Factory" means a factory as defined in clause (m) of section 2 of the Factories Act 1948 (63 of 1948) and includes any place to which the provisions of that Act have been applied under Sub-section (1) of Section 85 thereof
- "Wages" means all remuneration (whether by way of salary allowances or otherwise) expressed in terms of money or capable of being so expressed, which would if the terms of employment express or implied were fulfilled be payable to a person employed in respect of his employment or of work done in such employment and includes:
- any remuneration payable under any award or settlement between the parties or order of a Court
- any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period
- any additional remuneration payable under the terms of employment (whether called a bonus or by any other name)
- 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
- 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:
- 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
- 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
- any contribution paid by the employer to any pension or Provident Fund and the interest that may have accrued thereon
- any traveling allowance or the value of any traveling concession
- any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment
- any gratuity payable on the termination of employment in cases other than those specified in Sub-clause (d)
- Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act
- No wage-period shall exceed one month.
- Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated
- All payments of wages shall be made on a working day
- Any railway, factory, or industrial or other establishment upon or in which less than one thousand persons are employed shall be paid before the expiry of the seventh day,
- any other railway factory or industrial or other establishment shall be paid before the expiry of the tenth day after the last day of the wage-period in respect of which the wages are payable
- All wages shall be paid in current coin or currency notes or in both:
- Provided that the employer may after obtaining the written authorization of the employed person pay him the wages either by cheque or by crediting the wages in his bank account
- The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under this Act
- No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine or otherwise than in accordance with such a procedure as may be prescribed for the imposition of fines
- Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them, and such other particulars and in such form as may be prescribed.
- Every register and record required to be maintained under this section shall for the purposes of this Act be preserved for a period of three years after the date of the last entry made therein
- An Inspector of Factories appointed under Sub-section (1) of Section 8 of the Factories Act 1948 (63 of 1948) shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him
- Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following Section, namely Section 5 except subsection (4) thereof, Section 7, Section 8 except Sub-section (8) thereof, Section 9, Section 10 except Sub-section (2) thereof, and Section 11 to 13 both inclusive shall be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees
- Whoever contravenes the provisions of Section 4 [Sub-section (4) of Section 5, Section 6, Sub-section (8) of Section 8, Sub-section (2) of Section 10, or Section 25 shall be punishable with a fine which may be extended to five hundred rupees.
- Whoever being required under this Act to maintain any records or registers or to furnish any information or return
- fails to maintain such register or record; or
- Willfully refuses or without lawful excuse neglects to furnish such information or return; or
- willfully furnishes or causes to be furnished any information or return which he knows to be false; or
- refuses to answer or willfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act
shall for each such offense be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees.
- Whoever
- willfully obstructs an Inspector in the discharge of his duties under this Act; or
- refuses or willfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorized by or under this Act in relation to any railway, factory, or industrial or other establishment; or
- willfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or
- prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act,
shall be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees.
- If any person who has been convicted of any offense punishable under this Act is again guilty of an offense involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term which shall not be less than one month but which may extend to six months and with a fine which shall not be less than five hundred rupees but which may extend to three thousand rupees.
- Provided that for the purpose of this subsection, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offense, which is being punished, came to the knowledge of the Inspector.
- If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to one hundred rupees for each day for which such failure or neglect continues.
- The person responsible for the payment of wages of persons employed in a factory or an industrial or other establishment shall cause to be displayed in such factory or industrial or other establishment a notice containing such abstracts of this Act and of the rules made thereunder in English and in the language of the majority of the persons employed in the factory or industrial or other establishment as may be prescribed.
From India, New Delhi
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22The Parliament of India widened the scope of the Payment of Wages Act, which would cover those drawing wages up to Rs 6,500/- a month against Rs 1600/- earlier with the government assuring that it would soon come forward with a measure aimed at the welfare of workers in the unorganized sector.
The Payment of Wages (Amendment) Bill that was earlier passed by the Rajya Sabha was adopted by the Lok Sabha on 17th August 2005.
With the passage of the bill, the salary and wages of workers would be protected, ensuring timely payment, and employers would not be able to make illegal deductions.
PAYMENT OF WAGES ACT, 1936- IMPORTANT POINTS TO NOTE
- It extends to the whole of India
- "Factory" means a factory as defined in clause (m) of section 2 of the Factories Act 1948 (63 of 1948) and includes any place to which the provisions of that Act have been applied under Sub-section (1) of Section 85 thereof
- "Wages" means all remuneration (whether by way of salary allowances or otherwise) expressed in terms of money or capable of being so expressed, which would if the terms of employment express or implied were fulfilled be payable to a person employed in respect of his employment or of work done in such employment and includes:
- any remuneration payable under any award or settlement between the parties or order of a Court
- any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period
- any additional remuneration payable under the terms of employment (whether called a bonus or by any other name)
- 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
- 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:
- 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
- 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
- any contribution paid by the employer to any pension or Provident Fund and the interest that may have accrued thereon
- any traveling allowance or the value of any traveling concession
- any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment
- any gratuity payable on the termination of employment in cases other than those specified in Sub-clause (d)
- Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act
- No wage-period shall exceed one month.
- Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated
- All payments of wages shall be made on a working day
- Any railway, factory, or industrial or other establishment upon or in which less than one thousand persons are employed shall be paid before the expiry of the seventh day,
- any other railway factory or industrial or other establishment shall be paid before the expiry of the tenth day after the last day of the wage-period in respect of which the wages are payable
- All wages shall be paid in current coin or currency notes or in both:
- Provided that the employer may after obtaining the written authorization of the employed person pay him the wages either by cheque or by crediting the wages in his bank account
- The wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under this Act
- No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine or otherwise than in accordance with such a procedure as may be prescribed for the imposition of fines
- Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them, and such other particulars and in such form as may be prescribed.
- Every register and record required to be maintained under this section shall for the purposes of this Act be preserved for a period of three years after the date of the last entry made therein
- An Inspector of Factories appointed under Sub-section (1) of Section 8 of the Factories Act 1948 (63 of 1948) shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him
- Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following Section, namely Section 5 except subsection (4) thereof, Section 7, Section 8 except Sub-section (8) thereof, Section 9, Section 10 except Sub-section (2) thereof, and Section 11 to 13 both inclusive shall be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees
- Whoever contravenes the provisions of Section 4 [Sub-section (4) of Section 5, Section 6, Sub-section (8) of Section 8, Sub-section (2) of Section 10, or Section 25 shall be punishable with a fine which may be extended to five hundred rupees.
- Whoever being required under this Act to maintain any records or registers or to furnish any information or return
- fails to maintain such register or record; or
- Willfully refuses or without lawful excuse neglects to furnish such information or return; or
- willfully furnishes or causes to be furnished any information or return which he knows to be false; or
- refuses to answer or willfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act
shall for each such offense be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees.
- Whoever
- willfully obstructs an Inspector in the discharge of his duties under this Act; or
- refuses or willfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorized by or under this Act in relation to any railway, factory, or industrial or other establishment; or
- willfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or
- prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act,
shall be punishable with a fine which shall not be less than two hundred rupees but which may extend to one thousand rupees.
- If any person who has been convicted of any offense punishable under this Act is again guilty of an offense involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term which shall not be less than one month but which may extend to six months and with a fine which shall not be less than five hundred rupees but which may extend to three thousand rupees.
- Provided that for the purpose of this subsection, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offense, which is being punished, came to the knowledge of the Inspector.
- If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to one hundred rupees for each day for which such failure or neglect continues.
- The person responsible for the payment of wages of persons employed in a factory or an industrial or other establishment shall cause to be displayed in such factory or industrial or other establishment a notice containing such abstracts of this Act and of the rules made thereunder in English and in the language of the majority of the persons employed in the factory or industrial or other establishment as may be prescribed.
From India, New Delhi
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