Professional Documents
Culture Documents
I. Introduction:
a) History:
In earlier days, during British rule the imposition of fines and
deductions was a common practice in factories and railway services.
There was no uniformity in the payment of wages. Also the longer
intervals in the payment of wages added to the inconvenience of the
worker.
The Royal Commission on labour in its report in 1931 recommended
that legislation on payment of wages and fines was necessary and
desirable. In the light of its recommendation The Government of
India introduced a Bill seeking to regulate the delays and deduction
in payment of wages. The Bill was passed in 1936 and the Act came
into force from 28th march, 1937.
b) Brief:
The Payment of Wages Act, 1936 regulates the payment of wages of the
persons employed in factory, upon any railway by a railway
administration or through subcontractor in a railway and to persons
employed in any other industrial establishment Sec(1). This act
guarantees payment of wages on time and without any deductions
except from those who are authorised under the act. This act also
provides that a worker cannot contract out of the rights conferred
upon him by the act. This act does not apply to person whose wages
exceeds ₹1600 per month. Earlier it was ₹1000 but was raised to
₹1600 by the Payment of Wages (Amendment) Act, 1982.
III.Important Sections:
i) Every employer shall fix the wage period for the payment of the
wages which should not exceed the period of one month.
Wage period is the period within which the wages of the
persons employed should be paid.
i) All the wages shall be paid in current coins and currency notes or
in both. ₹2000, ₹500, ₹100, ₹50, ₹20, ₹10, ₹5 are the current
currency notes and the currently used coins are of ₹10, ₹5, ₹2, ₹1.
(If an employer obtains the written authorisation of the
employed person he may pay him the wages in cheque or by
crediting the wages in his bank account.)**
6) Sec 8: Fines
i) To hear and decide all claims arising out of deductions from the
wages, or delay in payment of the wages, of persons employed or
paid, including all matters, incidental to such claims, there will be
a officer mentioned below appointed by the appropriate
government.
(a) a presiding officer of any Labour Court or Industrial
Tribunal constituted under the Industrial Disputes Act
1947
(b) any Commissioner for Workmen's Compensation
(c) other officer with experience as a Judge of a Civil Court or
as a Stipendiary Magistrate
ii) In contrary to the provisions of the act if any employer deducts
from the wages of employee or makes any delay in payment then
in such case any lawyer or any Inspector under this Act or official
of a registered trade union authorized to write an application to
the authority appointed by government for direction of payment
of wages according to this act
i) The court shall not entertain the cases for recovery of wages or of
deductions if the sum so claimed
(a) Forms the subject of application under sec 15 which is
pending before the authority appointed
(b) Has formed the subject in favour of sec 15
27) Sec 25: Display by the notice containing the abstracts of the act
i) If the wages could not be paid to the employee due to his death,
then the amount will be paid to
(a) The person nominated by him
(b) If no such nomination is made, then to the prescribed
authority who shall decide the amount to be deposited
IV. Amendments:
i. The payment of wages (amendment) bill, 2017
removed ‘If an employer obtains the written
authorisation of the employed person he may pay him
the wages in cheque or by crediting the wages in his bank
account’ from section 6.
VI. Opinion :
-Shubham Gurav