The Payment of Wages Act, 1936 3.8.1 Object – To regulate payment of wages, time and mode of payment, imposition of fine and deduction et...
The Payment of Wages Act, 1936 3.8.1 Object – To regulate payment of wages, time and mode of payment, imposition of fine and deduction etc. 3.8.2 Application –all factories, shops, mines, establishments, etc., irrespective of the number of employees employed. 3.8.3 Coverage – Employees drawing wages up to Rs. 6500/-. Every employer/manager/occupier should make timely payment without any unauthorized deduction from wages. If number of employees is less than 1000, then wages must be paid within 7 days of the expiry of wage period and in other cases within 10 days. ( Section 5 ) The employer may fix the wage period which may be per day, per week or per 63 Legal Aspects of Hospital Management – Dr. B.G. Maniar month. But in no case it should exceed one month. ( wage period means a time period, expiry of which wages becomes payable ) All wages shall be paid in current coins or currency notes or in both. After obtaining the authorization, may be paid either by cheque or by crediting the wages in employees‘ bank account.
(Section 6) Contracting out is void. ( Section 23 ) 3.8.4 Wages It means all remunerations (expressed in terms of money) payable if the terms of employment express or implied were fulfilled in respect of the work done, which includes – - any sum payable according the terms of award, settlement, order of the court, over-time work, holidays, leave period, bonus (which form a part of remuneration), compensation payable at the time of termination ; But does not include –
- any bonus (under a scheme of profit sharing or otherwise), the value of any house accommodation or supply of light, water, medical attendance or other amenities, any contribution paid by the employer to any pension or P.F., or E.S.I.C., T.A., gratuity, etc. [Sec. 2(vi)] 64 Legal Aspects of Hospital Management – Dr. B.G. Maniar 3.8.5 Deduction from wages Authorized : PF - ESI contribution, LIC premium, advances, over payment paid by the employer, loan granted for housing or for any other purposes, amenities, services provided, income tax, fine, absence from duty (unauthorized absence) , damages or loss of goods, order of the court, etc. Imposition of fine on employees below 15 years is prohibited. The amount of fine should not exceed 3 % of the wages payable in respect of that wage period. Limit – the total amount of permissible deduction in any wage period should not exceed: o in case where deductions are wholly or partly made for payment to cooperative societies, 75 % of the wages ; and o in any other cases, 50 % of the wages.
Excess amount, however, can be deducted in the manner prescribed in the Rules. Principles of Natural Justice are to be observed where it is necessary In case 10 or more employees acting in concert absent without reasonable cause, deduction of wages up to 8 days, is permissible. 65 Legal Aspects of Hospital Management – Dr. B.G. Maniar Registers and Records are to be maintained according to the provisions of the Act and Rules under the Act. 3.8.6 Offences and penalties Delay in, or non-payment of wages within the prescribed time, making any unauthorized deduction or imposition of fines in contravention of the Act ;
Failure to maintain Registers and Records ; or to furnish required information or sending false information ; or obstructing the inspector or refusal to produce before him the Records/Documents for inspection o Fine up to Rs. 7500/-. ( minimum fine Rs. 1500 ) On repetition of the same offence – imprisonment up to 6 months and fine up to Rs. 22500/-( minimum 1 month and fine Rs. 3750/- respectively ) Any claim for un paid or delayed wages, unauthorised deduction from wages should be made within 12 months before the appropriate authority. Appeal against the decision of appropriate authority - before the District Court within 30 days. Bar of suits – no court other than the authority prescribed under the Act shall entertain the claim under this Act. 66 Legal Aspects of Hospital Management – Dr. B.G. Maniar No court shall take the cognizance of a complaint against any person unless it is presented before and permitted by the authority under this Act. No court shall take the cognizance of any offence punishable, except on a complaint made by or sanctioned by the inspector under this Act.
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