Payment of Wages- LAW

8/3/2019 Payment of Wages- LAW

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PAYMENT OF

WAGES ACT,

1936


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1936

GROUP MEMBERS

Priyanka Banka 916641 Daniel Solomon 916642

Kartik Iyer 916643 Anurag Tiwari 916644 Tirtha Hegde 916645 Charmi shah 916646

Sneha 916647 Roshan Mishra 916648 Abhishek Tiwari 916649 Asha Nagrajan 916650


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INDEX

1.Preliminary2.Payment ofwages anddeductions

3.Authoritiesunder the act

4.Miscellaneous

Paymentof wages

act


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PRELIMINARY


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INTRODUCTION

Payment of Wages act, 1936, is a actto regulate the payment of wages of

certain classes of employedpersons.


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OBJECTIVESThe main objective of the act is

To ensure regular andprompt payment ofwages

To preventunauthorizeddeductions and arbitrary

fines from the wages. To regulate the rate of

payment for overtime

work.


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APPLICABILITY

This act applies to

Persons employed in anyfactory.

Persons employed uponanyrailways.

Persons employed in anyindustrial or otherestablishment specified.

Section 1


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DEFINITIONS

Central government

State government

Appropriate

government [sec2(i)]


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Outline Type of remuneration Type of payment

Wages: [sec2(vi)]


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Includes the legal representative of a

deceased employed person.

Employed person:

sec[2(ia)]


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PAYMENT OF WAGESAND DEDUCTIONS


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RESPONSIBILITY FOR PAYMENT OF WAGES:

SEC(3)

All employers are responsible to pay wagesto any person employed by them.

Ex:

Factory manager Person responsible for supervision and

control in industries Person nominated by railway administration Person under the charge of contractor


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FIXATION OF WAGE-PERIOD : SEC(4)

Dates ofpayment shouldbe fixed

Payment periods

shouldnt exceed1 month


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TIME OF PAYMENT OF WAGES : SEC(5)

Wages should be paid within the wage period

Payment may be in currency notes or coins ,cheques or directly crediting of bank account


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DEDUCTIONS WHICH MAY BE MADE FROM

WAGES: SEC(7)

What is deduction???

Any loss/ lowering in wages due to:

Absence

Damage of goods in custody

House accommodation

Income tax

loans

Other amenities and service


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No fines shall be imposed on any employed person whois under the age of fifteen years .

A notice specifying such acts and omissions shall beexhibited in the prescribed manner on the premises inwhich the employment is carried on or in the case ofperson employed upon a railway at the precribed place orplaces.

No fines shall be imposed on any employed person untilhe has been given an opportunity of showing causeagainst the fine ,or otherwise than in accordance with

such procedure as may be prescribed for the imposition

SEC 8 : FINES


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SEC: 9 DEDUCTIONS FOR ABSENCE FROM DUTY

Deductions may be made under such clause (b) ofsubsection (2) of section 7 only on account of theabsence of an employed person from place or placeswhere bythe terms of his employment ,he is requiredto work , such absence being for the whole or any

part of the period during which he is so required towork .

The amount of such deductions shall in no case bearthe wages payable to the employed person in respectof the wages period for which the deductions is

made in a larger proportion than the period for whichhe was absent bears to the total period within suchwage-period , duing which by the terms of hisemployement , he was required to work :


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Sec 1: Deduction under clause (c) or clause(o) of sub-section (2) of section 7 shall not

exceed the amount or loss caused toemployer by the neglect or default of theemployed person.

SEC 10: DEDUCTIONS FOR DAMAGES OR LOSS


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A deduction under clause (d) or clause (e)

of subsection 7 shall not be made from thewages of an employed persons

SEC 11: DEDUCTIONS FOR SERVICESRENDERED


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Deductions under clause (f) of

sub-sec (2) of sec 7 shall be subjectto the conditions

SEC 12:DEDUCTIONS FOR RECOVERY FORADVANCES


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Deductions for recovery of loansgranted under clause fff of sub

section (2) of sec 7 shall be subject toany rules made by appropriategovernment

SEC 12A: DEDUCTIONS FOR RECOVERY OFLOANS


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AUTHORITIES..


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INSPECTORS (SEC 14)

Inspectors are of 3 kinds

Inspector of factories

Inspector of railways

Inspector appointed by SG in any industry

Powers of an inspector

Facilities to be afforded to inspectors


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AUTHORITY TO HEAR CLAIMS (SEC 15)

According to the specifiedarea, the AG may appoint

someone in authority to hear

and decide the problemsarising out of

Deduction of wages

Delay of payment


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PRESENTATION OF APPLICATION

An application can be presented in casethere has been

any deduction contrary to the provision of this act

Any delay in payment of wages contrary to theprovisions of this act

This application needs to be filed within 12

months of the date of delay or deduction


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SCOPE OF JURISDICTION (SEC 15)

The jurisdiction of the authority really is todetermine the terms of the contract in so far asthey relate to the payment of wages and in sofar as he has to decide the liability of theemployer to pay wages under the terms of thecontract. But that jurisdiction does not extendto determine the questions as to whether the

contract has been terminated as alleged by theemployer or the contract is still subsisting asalleged by the survey.


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SINGLE APPLICATION

If there has been adelay or deduction inthe payment of a

group ofemployees(unpaidgroup), they can file ina single application.

State of U.P v. Presiding Officer, Payment ofwages officer, Varanasi and others

Unpaid group


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APPEAL (SEC 17)

An appeal may be preferred fromthe following orders:

An order directing the employer or thepersons responsible for payment of wages

An order directing payment ofcompensation

An order imposing penalty


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MISCELLANEOUS.


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REGISTERS AND RECORDS

Every employer is required tomaintain a register containing

Employees Kind of work performed

Wages

Deductions Receipts

SEC 19
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SEC 19 : POWER TO RECOVER FROM EMPLOYERIN CERTAIN CASES

Repealed by thePayment ofWages (Amendment) Act, 1964 (53of 1964), w.e.f. 1st.February, 1965


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PENALTY FOR OFFENSES (SEC 20)

The penalties are

For delaying payment of wages.

For paying wages on a working day.

For failure to maintain records.

For obstructing inspectors.

Subsequent offence.


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PROCEDURE IN TRIAL (SEC 21)

No court shall take cognizance of a complaintagainst any person for an offence under sub-section (1) of section 20 unless an application inrespect of the facts constituting the offence has

been presented under section 15

No Court shall take cognizance of acontravention of section 4 or of section 6 or of a

contravention of any rule made under section 26except on a complaint made by or with thesanction of an Inspector under this Act.


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BAR OF SUIT (SEC 22)

No Court shall entertain any suit for the recovery of wages or of any deduction fromwages in

so far as the sum so claimed

(a) forms the subject of an application under section 15 which has been presented bythe

plaintiff and which is pending before the authority appointed under that section or ofan

appeal under section 17; or

(b) has formed the subject of a direction under section 15 in favour of the plaintiff; or

(c) has been adjudged in any proceeding under section 15 not to be owned to theplaintiff; or

(d) could have been recovered by an application under section 15.

SECTION 22A:PROTECTION OF


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SECTION 22A:PROTECTION OF

ACTION TAKEN IN GOOD FAITH

No suit prosecution or other legal proceeding

shall lie against the government or any officer of

the Government for anything which is in good

faith done or intended to be done under this Act.


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CONTRACTING OUT (SEC 23)

Any contract or agreement, whether madebefore or after the commencement of thisAct, whereby an employed person

relinquishes any right conferred by this Actshall be null and void in so far as it purportsto deprive him of such right.


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DISPLAY BY NOTICE (SEC 25)

The person responsible for

payment of wages to all employershave to ensure that All rules andnotices should be displayed by the

employer in a languageunderstood by the majority.


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PAYMENT OF UNDISBURSED WAGES (SEC 25-A)

If the wages to be paid to anemployee cannot be paid due to

Death or His whereabouts not beingknown

The wages should be paid to thenominee or deposited with theprescribed authority.


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RULE MAKING POWER (SEC 26)

The state governmentmakes rules toregulate theprocedures to befollowed for thepayment of wagesand what needs to bedone in case of anyviolation of the act.


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Documents

Payment of Wages- LAW