Payment Of Wages Act 1936

OBJECT OF THE ACT

To regulate the payment of wages of certain classes of employed persons.

APPLICABILITY OF ACT

  • Factory
  • Industrial Establishment
  • Tramway service or motor transport service engaged in carrying passengers or goods or both by road for hire or reward
  • Air transport service
  • Dock, Wharf or Jetty
  • Inland vessel, mechanically propelled
  • Mine, quarry or oil-field
  • Plantation
  • Workshop or other establishment etc

Wages to be paid in current coins or currency notes
  • All wages shall be paid in current coins or currency notes or in both
  • After obtaining the authorization, either by cheque or by crediting the wages in employee’s bank account.
  • The workman having been at the time thereof under the influence of drink or drugs
Sec. 6
Time of payment of wages

The wages of every person employed be paid

  • When less than 1000 persons are employed, shall be paid before the expiry of the 7ltl day of the following month.
  • When more than 1000 workers, before the expiry of the 10th day of the following month.
  • The workman having been at the time thereof under the influence of drink or drugs
Sec. 5
Deduction made from wages
  • Deductions such as, fine, deduction for amenities and services supplied by the employer, advances paid, over payment of wages, loan, granted for house-building or other purposes, income tax payable, in pursuance of the order of the Court, PF contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of fosses, ESI contributions etc.
Sec. 7
Coverage of Employees
  • Drawing average wage upto Rs 6500 per month./li>
Deduction for services rendered
  • When accommodation amenity or service has been accepted by the employer.

Sec. 11

 
Fines As Prescribed By
  • Not to be imposed unless the employer is given an opportunity to show cause
  • To record in the register

Sec. 8

Deduction For Absence From Duties For Unauthorized Absence
  • Absence for whole or any part of the day.
  • If ten or more persons absent without reasonable cause, deduction of wages upto 8 days
Sec. 9
Penalties
On contravention of S. 5 (except sub-sec.4), S 7, S.8 (except sub-sec.8), S.9, S.10 (except sub-sec. 2) and Sees. 11 to 13 Fine not less than Rs. 1000 which may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000, may extend to Rs.10,000, On contravention of S.4, S 5(4), S,6, S.8(8), S.10{2) or S.25 fine not less than Rs.1000-may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000-may extend to Rs. 10,000.
For failing to maintain registers or records
Wilfully refusing or without lawful excuse neglecting to furnish information or return
Wilfully refusing or without lawful excuse neglecting to furnish information or returnFine which shall not be less than Rs.1000 but may extend to Rs.5000 – On record conviction fine not less than Rs.5000. may extend to Rs.10,000
Wilfully furnishing or causing to be furnished any information or return which he knows to be false Second or subsequent conviction, fine not less than Rs.5000 but may extend to Rs.10,000.
Refusing to answer or wilfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act.
Wilfully obstructing an Inspector in the discharge of his duties under this Act
Refusing or wilfully neglecting to afford an Inspector any reasonable facility for making any entry, inspection etc. Fine not less than Rs.1000 extendable upto Rs.5000 – On subsequent conviction fine not less than Rs 5000 – may extend to Rs.10,000.
Wilfully refusing to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or preventing any person for appearance etc.
On conviction for any offence and again guilty of contravention of same provision Imprisonment not less than one month extendable upto six months and fine not less than Rs.2000 extendable upto Rs. 15000.
Failing or neglecting to pay wages to any employee. Additional fine upto Rs. 100 for each day.
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