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Introduction
The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and indirect). The act is intended to be a remedy against unauthorized deductions made by employer and/or unjustified delay in payment of wages.
Objectives of the Payment of Wages Act
The Payment of Wages Act governs the payment of wages to specific types of workers in the industrial sector, and its significance cannot be overstated. The Act ensures that salaries are paid on time and without deductions unless specifically permitted by the Act.
The Act establishes the employer's responsibility for wage payment, as well as the wage period, time and mode of payment, and permissible deductions, as well as a duty on the employer to seek the Government's approval for acts and permissions for which fines may be imposed by him, as well as the sealing of the fines, and a machinery to hear and decide complaints about wage deductions or delays, as well as a penalty for malicious and vexatious acts.
The Act does not apply to anybody earning more than Rs. 24,000 per month. The Act also states that a worker cannot contract out of any of the rights granted to him by the Act.
Applicability
All persons employed in a factory or certain designated industrial or other institutions, whether directly or through contractors, are covered by this Act.
Regular Pay
Payment should be made before the 7th day of a month where the number of workers is less than 1000 and 10th day otherwise. The wage-period shall not exceed 1 month. The Act is applicable only to employees drawing wages not exceeding Rs. 6500 a month. [20]
Mode of Payment
Under the act, payment has to be made in currency notes or coins. Cheque payment or crediting to bank account is allowed with consent in writing by the employee. (Section 6)
Deduction from Wages
Employer is allowed to effect only authorized deductions, as specified in the Act. This include fines (Section 8), absence from duty (Section 9), Damages or loss (Section 10), deduction for services (amenities ) given to employer (Section 11) recovery of advances and loans (Section 12, 13) and payment to cooperative society and insurance (Section 13).
Claims for excessive deduction and Non Payment
Employers individually or through trade union can approach the authority (Labour Office) for relief. (Section 15, 16, 17)