MINDMAPS FOR INDUSTRIAL LABOUR & GENERAL LAWS

PAYMENT OF WAGES ACT,1936

LESSON OUTLINE-

• OBJECT
• DEFINITIONS
• FIXATION OF WAGES
• MAINTENANCE OF REGISTERS AND RECORDS
• PENALTY

OBJECT & SCOPE

The main object of the act is to eliminate all malpractices by laying down the time and mode of payment of wages as well as securing that the worker are paid their wages at regular interval without any unauthorized deduction.

the act extends to whole of India.

Definitions  

Employed Person

"includes legal representative of a deceased person".{section 2(ia)}

Employer

"includes legal representative of a deceased employer".{section 2(ib)}

Factory

means a factory defined in clause (m) of sec 2 of the factories act 1948 (63 of 1948)& includes any place to which the provision of that act have been applied under sub-sec (1)of section 85 thereof.{sec 2(ic)}

Industrial or other establishment- means any-

Wages

means all remunerations expressed in term of money or capable of being so expressed which would if the term of employment express or implied were fullfiled by payable to a person employed in respect of his employment or of work done in such employment include -

• any remuneration payable.
• any remuneration entitled in respect of overtime work
• any additional remuneration.

• any sum which by reason of the termination of the of employment of the person employed is payable.

• any sum to which person employed is entitled under any scheme framed under any law.

but does not include-

• bonus not forming part of remuneration
• HRA or any other amenity
• any contribution paid by employer to any pension or provident fund.
• any travelling allowance
• deferred payment of special expenditure
• any gratuity payable on termination of employment

Responsibility for payment of wages

section 3 provides that every employer shall be responsible for the payment to person employed by him , in case person employed in industrial or other establishment  person responsible for employer for the supervision and control of the industry or establishment, in case of  person employed in the work of contract a person designated by such contractor who is directly under his charge.

It may be noted that as per section 2(ia) "employer" includes legal representative of a deceased employer.

fixation of wage period

As per section 4 every person responsible for the payment of  wages shall fix wage periods in respect of such wages shall be payable.no wage period shall exceed one month.

time of payment of wages

section 5 specifies the time payment of wages in any railway, factory or industrial or other establishment having less than 1000 employee, shall be paid before expiry of 7th day.

In any other railway factory or establishment shall be paid before the expiry of the 10th day, after the last day of the wage period.

all payment of wages shall be made on a working day.