3 Payment of Wage Legislaionn 16

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Payment of Wage

LegislationBy Shweta Bambuwala


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Objectives

Payment in kind When paid in cash payment in illegal

tender

Arbitrary Deductions

Irregular Payment

Non Payment


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Payment of Wages Act 1936

It puts a legal obligation to fix a wageperiod and to make payment ofwages

Lay downs authorized deductionsand employers are prohibited frommaking Arbitrary deductions


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Scope

It does not apply to wages which

average Rs 6500 a month or moreover

It Applies to,

1. Persons employed in any factory

2. Person employed or fulfilling contract withrailway administration

3. Persons employed in any of the followingindustrial establishment,

. Tramway service


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Wages

All remuneration expressed in terms ofmoney or capable of being so expressedwhich would, if the terms of employmentexpress or implied were fullfilled be payable

to persons employed and includes:

a) Award, Settlement between parties or order of a

court

b) Remuneration for overtime work , holidays or leaveperiod

c) Any sum by reason of the termination of employment


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Responsibility for wage payment

Fixation of wage period

Not exceeding 1 month

Time of payment of wages

Less than 1000 Employees, payment before the expiry ofthe seventh day after last day of wage period

More than 1000 Employees, Payment before the expiry ofthe tenth day after the last day of the wage period.


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Deductions

1. Fines

2. Absence from duty

3. Damage or loss

4. House Accommodations and services rendered

5. Recovery of advances or for adjustment ofoverpayment for wages

6. Recovery of loan

7. Income tax

8. By order of court

9. Subscription to or for repayment of advances


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Total amount of deductions

not to exceed 75 percentage of wages- cooperative societies

50 percentage- other cases

Appeal

Registers, Records and Notices

Inspectors


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Penalties Non payment of wages- Rs.200 up to

Rs.1000.

Failure to maintain records- Rs.200 up to

Rs.1000

Willfully obstructing an inspector- Rs.200 up

to Rs.1000

Contravention of provisions related to

wages- max. Rs 500.


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Minimum Wages Act 1948

First legislation dealing with thefixation of minimum rates of wages

Objectives

To prevent exploitation of labor and

payment of unduly low wages Regulating the quantum of wages


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Scope

Empowers state and centralgovernments to fix minimum wagesin respect of workers employed in the

industries listed in schedule of theact which contains two parts I and II


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Fixation of minimum rates

Wages for time work

Wages for piece work

Remuneration as guaranteed timerate

Minimum rate of wages for overtime

work Different wage rate for different

scheduled employments


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Any rate of wage fixed by

government may consist of.

1. A basic rate and cost of livingallowances

2. A basic rate and cost of livingallowances and the cash equivalentof the concession in respect ofsupplies of essential commodities

3. An all inclusive rate


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Procedure for fixingminimum Rates

Two distinct procedures

Committees, sub committees

Recommendations

Notification in official gazette

Proposal by government on minimumwages

Two months


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Mode of Payment

Deductions from wages

Hours of work, overtime and weeklyrest and others


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Penalties

Payment less than minimum rates fixedor contravention of any rule or ordermade is punishable with imprisonmentfor a term up to 6 months and fine Rs

500

Contravention of any provision finemay extend to Rs 500.

Any claim which is malicious- fine not

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3 Payment of Wage Legislaionn 16