Description
regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. The PPT covers the act in detail.
Payment of Wages Act, 1936
Presented By: Pratiksha Wadkar PGD-HCM(2011-2013)
Objectives
? To ensure regular and prompt payment of wages
? ?
? ?
and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. It extends to the whole of India The object of the act is to regulate the payment to wages to certain classes of person employed in industry in a particular form and at regular intervals. It prevent unauthorized deductions from the wages. The act is concerned merely with the fixation of
Payment of wages
The act is in 3 parts
art- I It deals with the regulation and payment of wages by employer. Part-II It specifies the heads under which deductions can be made from wages. Part-III It provides a machinery for enforcing specific claims arising out of delayed payments, deduction from wages, appeals etc.
? It is a self-contained act and provides its own machinery for
the disposal of the claims.
Applicability
? Every person employed in any factory, upon any
railway or through subcontractor in a railway and a person employed in an industrial or other establishment. ? The State Government may by notification extend the provisions to any class of person employed in any establishment or class of establishments.
Eligibility
? Every person who is employed in any of the above
mentioned establishments and who is drawing less than Rs. 1,600 per month.
Definitions
Wages means all remuneration(whether by way of salary, allowances) expressed in terms of money or capable of being fulfilled, would be payable to a person employed in respect of his employment or of work done in such employment. It includes: ? Any remuneration payable under any award of settlement between the parties or order of a court. ? Any remuneration to which the person employed is entitled in respect of overtimes work or holidays or any leave period. ? Any sum which by reason of the termination of employment of the person employed is capable under any law, contract or instrument which provides for the
Cont.
? Any sum to which the person employed is entitled under any
?
?
?
? ?
scheme framed under any law for the time being in force. However it does not include: Any bonus 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 pair by the employer to any pension or provident fund and the interest which may have accrued thereon. Any travelling allowanced or the value of any travelling concession. Any sum paid to the employed person to defray special
Wage payment
? The employer or his representative. ? No wage period shall exceed 1 month in any case. ? Wages may be payable daily, weekly, fortnightly and
monthly. ? Where less than 1000 persons are employed, wages shall be paid before the expiry of the 7th day and in other cases before the expiry of the 10th day, after the last day of the wage period. ? If the employer terminates the services of an employee, the employee is entitled to receive the wage earned by him before the expiry of the 2nd working day from the day on which his employment has been terminated. ? All wages should be paid in current coin or currency
Deductions from wages
? Wages shall be paid to an employed person without
deductions of any kind except those authorized by or under the act. ? Withholding of increment or promotion(including the stoppage increment at an efficiency bar); reduction to a lower post or time scale or to a lower stage in a time scale suspension are not deemed to be deductions from wages(section 7) ? The term deduction from wages has not been defined in the act. The act specifies the heads from section 7 to 13 under which deductions from wages made namely:
?
?
?
fines deductions for absence from duty deductions for damage to or loss of goods of the
? Deductions for amenities and services made available by the
employer ? Deduction for recovery of advances or for adjustment of overpayments of wages ? Deduction for recovery of loans ? Deduction for income-tax payable by the employee ? Deduction for payments to co-operative society ? Deduction provided under different statutes ? Deductions made with the written authorization of persons for payment of life insurance premium or national small savings ? Deduction for payment of contribution to any welfare fund constituted by the employer for the welfare of employed persons & the members of their families ? Deductions for the payment of the fees payable by the employed person for membership of any registered trade union
There are certain conditions and limits subject to which fines may be imposed. These are:? A fines can be imposed only for such acts or omissions as are specifies by the employer and previously approved by the state government; ? A notice specifying such acts or omissions must be exhibited on the premises in which employment is carried on; ? A person involved must be informed in writing the reasons for imposing fine; ? No fines shall be imposed on an employed person who is under the age of 15 years. ? No fine shall be recovered from an employed person by installments expiry of 60 days from the day on which it was imposed; ? The total amount of fine in one wage period shall not exceed an amount equal to 3% for that wage period; ? All realizations by way of fine have to be recorded in a register and must be applied only for such purpose as are beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority
Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act : Provided that in the case of persons employed (otherwise than by a contractor) (a) in factories if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act 1948(63 of 1948) ; (b) in industrial or other establishments if there is a person responsible to the employer for the supervision and control of the industrial or other establishments; (c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned. The person so named the person so responsible to the employer
Authorities
? The act makes provision for the appointment of ? ?
? ?
inspectors (sec 14). The inspector of factories is also the inspector under this act. The act also provides for the appointment of a person to be the authority to hear and decide, for any specified area, claims arising out of deductions from wages or delay in payment of wages (section 15). The aggrieved person himself or on his behalf can submit an application to the authority within 12 months. The authority may direct the employer to refund the amount wrongly deducted or the payment of delayed wages. There are 3 distinct categories of persons prescribed as authorities under section 15(1) if the act. They are:-
Claims and appeal
Claims ? Claims arising out of deduction from wages and delay in payment of wages and penalty of malicious claims will be heard and decided by the authority appointed by the government for any specifies area. ? Employees of the same unpaid group may file joint application for realization of the dues and compensation. ? The authority under this act can only adjudicate upon claims regarding deductions and delay in payment of wages and not upon any dispute in respect of wages. Appeal ? An appeal lies against the decision of the authority to a court of small causes in a metropolitan town and before
? A memorandum of appeal by an employer shall be
accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the deduction appealed against. ? Further the employer can appeal provided the total amt. deducted exceeds Rs.300. ? The authority and the court is empowered to order conditional attachment of property of the employer or other persons responsible for payment of wages. ? They have all powers of a civil court under the civil procedure code (sec.17,17A & 18). An employer shall stand discharged of his liability to pay unpaid wages if he pays them to the nominee of the deceased person and in case he is not able to do so, if he deposits them with the prescribed authority
Offences and penalties
? The act prescribes penalties for offences committed
under the act and the procedure to be followed in the trial of offences.
? The jurisdiction of a civil court is barred in entertaining
any suit for the recovery of wages or any deduction from wages(section 21).
? Any contract or agreement whereby an employed person
relinquishes any right conferred by this act shall be null and void (section 23).
Obligations of employers
? To fix the wage-period not exceeding one month ? ? ? ?
? ?
(section 5) To pay wages in cash or by cheque after taking written authorization of the employed person (section 6) To pay wages on any working day. To made deductions permissible only under section 7 from the wages of the employed person. To ensure that deductions do not exceed 75% where payment to a co-operative society is to be made, and in other cases. Deductions do not exceed 50%. To seek, before imposing fines approval of list of acts and omissions from the prescribed authority. Not to impose fines exceeding 3% of the ages on the
Cont. ? To give show-cause notice to the employed person before imposing fines. ? To recover fines within 60 days of the date of offence. ? To afford facilities to inspectors for entry , inspection, supervision, examination or inquiry under the act. ? To display abstract of the act and the rules in English and in a language understood by the majority of workmen. ? To maintain following register in the prescribed forms. ? Register of wages ? Register of fines ? Register of deductions for damages of loss ? Register of advances Apart from maintaining necessary records & registers the employer is required to display an abstract of the act at a conspicuous place
Thank You.
doc_117890933.pptx
regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. The PPT covers the act in detail.
Payment of Wages Act, 1936
Presented By: Pratiksha Wadkar PGD-HCM(2011-2013)
Objectives
? To ensure regular and prompt payment of wages
? ?
? ?
and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. It extends to the whole of India The object of the act is to regulate the payment to wages to certain classes of person employed in industry in a particular form and at regular intervals. It prevent unauthorized deductions from the wages. The act is concerned merely with the fixation of
Payment of wages
The act is in 3 parts
art- I It deals with the regulation and payment of wages by employer. Part-II It specifies the heads under which deductions can be made from wages. Part-III It provides a machinery for enforcing specific claims arising out of delayed payments, deduction from wages, appeals etc.? It is a self-contained act and provides its own machinery for
the disposal of the claims.
Applicability
? Every person employed in any factory, upon any
railway or through subcontractor in a railway and a person employed in an industrial or other establishment. ? The State Government may by notification extend the provisions to any class of person employed in any establishment or class of establishments.
Eligibility
? Every person who is employed in any of the above
mentioned establishments and who is drawing less than Rs. 1,600 per month.
Definitions
Wages means all remuneration(whether by way of salary, allowances) expressed in terms of money or capable of being fulfilled, would be payable to a person employed in respect of his employment or of work done in such employment. It includes: ? Any remuneration payable under any award of settlement between the parties or order of a court. ? Any remuneration to which the person employed is entitled in respect of overtimes work or holidays or any leave period. ? Any sum which by reason of the termination of employment of the person employed is capable under any law, contract or instrument which provides for the
Cont.
? Any sum to which the person employed is entitled under any
?
?
?
? ?
scheme framed under any law for the time being in force. However it does not include: Any bonus 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 pair by the employer to any pension or provident fund and the interest which may have accrued thereon. Any travelling allowanced or the value of any travelling concession. Any sum paid to the employed person to defray special
Wage payment
? The employer or his representative. ? No wage period shall exceed 1 month in any case. ? Wages may be payable daily, weekly, fortnightly and
monthly. ? Where less than 1000 persons are employed, wages shall be paid before the expiry of the 7th day and in other cases before the expiry of the 10th day, after the last day of the wage period. ? If the employer terminates the services of an employee, the employee is entitled to receive the wage earned by him before the expiry of the 2nd working day from the day on which his employment has been terminated. ? All wages should be paid in current coin or currency
Deductions from wages
? Wages shall be paid to an employed person without
deductions of any kind except those authorized by or under the act. ? Withholding of increment or promotion(including the stoppage increment at an efficiency bar); reduction to a lower post or time scale or to a lower stage in a time scale suspension are not deemed to be deductions from wages(section 7) ? The term deduction from wages has not been defined in the act. The act specifies the heads from section 7 to 13 under which deductions from wages made namely:
?
?
?
fines deductions for absence from duty deductions for damage to or loss of goods of the
? Deductions for amenities and services made available by the
employer ? Deduction for recovery of advances or for adjustment of overpayments of wages ? Deduction for recovery of loans ? Deduction for income-tax payable by the employee ? Deduction for payments to co-operative society ? Deduction provided under different statutes ? Deductions made with the written authorization of persons for payment of life insurance premium or national small savings ? Deduction for payment of contribution to any welfare fund constituted by the employer for the welfare of employed persons & the members of their families ? Deductions for the payment of the fees payable by the employed person for membership of any registered trade union
There are certain conditions and limits subject to which fines may be imposed. These are:? A fines can be imposed only for such acts or omissions as are specifies by the employer and previously approved by the state government; ? A notice specifying such acts or omissions must be exhibited on the premises in which employment is carried on; ? A person involved must be informed in writing the reasons for imposing fine; ? No fines shall be imposed on an employed person who is under the age of 15 years. ? No fine shall be recovered from an employed person by installments expiry of 60 days from the day on which it was imposed; ? The total amount of fine in one wage period shall not exceed an amount equal to 3% for that wage period; ? All realizations by way of fine have to be recorded in a register and must be applied only for such purpose as are beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority
Responsibility for payment of wages
Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act : Provided that in the case of persons employed (otherwise than by a contractor) (a) in factories if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act 1948(63 of 1948) ; (b) in industrial or other establishments if there is a person responsible to the employer for the supervision and control of the industrial or other establishments; (c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned. The person so named the person so responsible to the employer
Authorities
? The act makes provision for the appointment of ? ?
? ?
inspectors (sec 14). The inspector of factories is also the inspector under this act. The act also provides for the appointment of a person to be the authority to hear and decide, for any specified area, claims arising out of deductions from wages or delay in payment of wages (section 15). The aggrieved person himself or on his behalf can submit an application to the authority within 12 months. The authority may direct the employer to refund the amount wrongly deducted or the payment of delayed wages. There are 3 distinct categories of persons prescribed as authorities under section 15(1) if the act. They are:-
Claims and appeal
Claims ? Claims arising out of deduction from wages and delay in payment of wages and penalty of malicious claims will be heard and decided by the authority appointed by the government for any specifies area. ? Employees of the same unpaid group may file joint application for realization of the dues and compensation. ? The authority under this act can only adjudicate upon claims regarding deductions and delay in payment of wages and not upon any dispute in respect of wages. Appeal ? An appeal lies against the decision of the authority to a court of small causes in a metropolitan town and before
? A memorandum of appeal by an employer shall be
accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the deduction appealed against. ? Further the employer can appeal provided the total amt. deducted exceeds Rs.300. ? The authority and the court is empowered to order conditional attachment of property of the employer or other persons responsible for payment of wages. ? They have all powers of a civil court under the civil procedure code (sec.17,17A & 18). An employer shall stand discharged of his liability to pay unpaid wages if he pays them to the nominee of the deceased person and in case he is not able to do so, if he deposits them with the prescribed authority
Offences and penalties
? The act prescribes penalties for offences committed
under the act and the procedure to be followed in the trial of offences.
? The jurisdiction of a civil court is barred in entertaining
any suit for the recovery of wages or any deduction from wages(section 21).
? Any contract or agreement whereby an employed person
relinquishes any right conferred by this act shall be null and void (section 23).
Obligations of employers
? To fix the wage-period not exceeding one month ? ? ? ?
? ?
(section 5) To pay wages in cash or by cheque after taking written authorization of the employed person (section 6) To pay wages on any working day. To made deductions permissible only under section 7 from the wages of the employed person. To ensure that deductions do not exceed 75% where payment to a co-operative society is to be made, and in other cases. Deductions do not exceed 50%. To seek, before imposing fines approval of list of acts and omissions from the prescribed authority. Not to impose fines exceeding 3% of the ages on the
Cont. ? To give show-cause notice to the employed person before imposing fines. ? To recover fines within 60 days of the date of offence. ? To afford facilities to inspectors for entry , inspection, supervision, examination or inquiry under the act. ? To display abstract of the act and the rules in English and in a language understood by the majority of workmen. ? To maintain following register in the prescribed forms. ? Register of wages ? Register of fines ? Register of deductions for damages of loss ? Register of advances Apart from maintaining necessary records & registers the employer is required to display an abstract of the act at a conspicuous place
Thank You.
doc_117890933.pptx