Payment of is the most important thing for a worker. Unless he is paid his wages without delay and without any undue deductions, he will feel disturbed and lose interest in the work.
It may become difficult for him to survive (live). Therefore, it was felt necessary that there should be a legislation (law) to protect the wages earned by a worker.
Keeping this in view, the Government enacted the Payment of Wages Act, 1936 to ensure that there was no delay in payment to the workers, non-payment of wages should be avoided, and the employers should not make deductions from the wages on account of fines imposed by him.
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ADVERTISEMENTS:
Object and Scope:
According to the preamble of the Act, the object of the Act is “to regulate the payment of wages to certain classes of bessons employed in the industry”. The Act provides that “employed persons shall be paid their wages in a particular form and at regular intervals without any unauthorised deductions”.
The Act safeguards the wages of employees under certain conditions. The Act applies to employees drawing not more than Rs. 1600/- per month. The State Government has the power to make the Act applicable to any class of persons employed in any establishment or class of establishment by giving 3 months notice.
ADVERTISEMENTS:
Definition of ‘workers’ is to be taken from the Industrial Employment (Standing Orders) Act, 1946. The scope of the Act has been widened by the Amendment in the Act called the Payment of Wages (Amendment) Act, 1982.
Application:
The Act applies to the whole of India. It came into operation on 28th March, 1937. Under the Act, following categories of workers are covered:
a) Persons employed in any factory;
ADVERTISEMENTS:
b) Persons employed (otherwise than in a factory) upon any railways or by a person fulfilling a contract with a railway administration.
Payment of Wages and Deductions from Wages:
These are the two important provisions of the Act. According to the Act, every employer shall be primarily responsible for the payment to persons employed by him. He should pay all wages required to be paid.
The employer should fix the wage period in respect of his employees. This period should not exceed one month.
The employer should also fix time of payment of wages to his workmen. For this purpose certain conditions have been specified under the Act.
Wages should be paid in current coins or currency notes or in both.
The employer should make only the authorised deductions from the salary of workers working in his factory. He can make authorised deductions in respect of loan taken by the workers or for recovery of losses.
But total deductions should not exceed fifty percent of the wages. In cases where such deductions are made to co-operative societies the deductions should not exceed 75 per cent of the wages?
If a Court or other authorities competent to make order for deduction, orders for deduction from salary, it is allowed under the Payment of Wages Act, 1936.
Deductions towards fine can be made from the salary of a factory worker only in accordance with the provisions of this Act.
Other deductions like deductions for absence from duty, deductions for damage or loss of goods by the worker, deductions for loss of money for which the worker is directly responsible, deductions towards house rent on account of accommodation provided by the factory owner, deductions towards recovery of advances, income tax, etc. can be deducted from the wages of factory workers only in accordance with the rules framed under this Act.
The following rules are given in the Payment of Wages Act:
(1) Employers cannot withhold the wages earned by workers nor can they make any unauthorised deductions from the wages.
(2) Payments must be made before the fixed pay day after the wage period.
(3) Fines can be imposed for only those acts of omission which have been approved by the appropriate government. These must not be more than an amount equal to three paise in a rupee of the wage payable.
(4) If the payment of wages is delayed or wrongful deductions are made, the workers or their trade unions can file a claim.
(5) The payment of overtime in scheduled employment is governed by the Minimum Wages Act, 1948.
(6) Wages should be paid according to the rules, as contained in the Act.
The Payment of Wages (Amendment) Act, 1976 is applicable to the whole of India and applies to persons employed in any factory as defined in the Factories Act, 1948 and in any railway, receiving wages and salaries which on an average are below Rs. 1,000 a month.
This amount has been raised to Rs. 1,600/- per month through Amendment of the Act in 1982.