| THE PAYMENT OF WAGES ACT, 1936 |
| THE PAYMENT OF WAGES ACT, 1936 [Act 4 of 1936' as amended by Act Nos. 20 of 1937, 22 of 1937, Ordinance 3 of 1940, 3 of 1951, Bom 40 of 1953, Bom 62 of 1953, Bom 70 of 1954, Bom 48 of 1955, Bom 37 of 1956, Act 68 of 1957, Bom 8 of 1960, Mah. 13 of 196 1, Mah. 42 of 1961, 53 of 19642, Regulation 5 of 1965, 51 of 1970, Regulation 2 of 1974, 56 of 1974,- 29 of 1976, 19 of 1977 and 38 of 19823 Modified by A O 1937, A.O 1048 and A.O 1950 [23rd April, 1936] An Act to regulate the payment of wages to certain classes of 4 [employed persons]. Whereas it is expedient to regulate the payment of wages to certain classes of 4 [employed persons]; It is hereby enacted as follows: SECTION 01: SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION (1) This Act may be called the Payment of Wages Act, 1936. 5 [(2) It extends to the whole of India 6 [******] (3) It shall come into force on such 7 [date as the Governor General in Council may, by notification in the Official Gazette of India, appoint. (4) It applies in the first instance to the payment of wages to persons employed in 8 [factory, to persons] employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, 9 [and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of Section 21. (5) The 10 [State] Government may, after giving three months notice of its intention of so doing, by notification in the 11 [Official Gazette], extend the provisions of 12 [this Act or any of them to the payment of wages to any class of persons employed in 13 [any establishment or class of establishments specified by the Central Government or a State Government under sub-clause (h) of clause (ii) of section 2]: 14 [Provided that in relation to any such establishment owned by the Central Government, no such notification shall be issued except with the concurrence of that Government]. (6) Nothing in the Act shall apply to wages payable in respect of a wage-period which, over such wage-period, average 15 [one thousand six hundred rupees] a month or more. Footnotes: 1. For Statement of Objects and Reasons see Gazette of India, 1935, Pt. V, p.20, for Report of Select Committee, see ibid. p.77 2. The amending Act No.53 of 1964 came into force from 1.2.1965. 3. Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 4. Subs. ibid. 5. Subs. by AD 1950, for sub-sec. 6. Omitted by Act 51 of 1970. 7. 28th March, 1937, see Gaz of India 1937, Pt. 1, p. 626. 8. Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 9. Ins. ibid. 10. These words substituted for the word "provincial" by A.O 1950 11. These words substituted for the words "Local Official Gazette", by the A.O 1937 12. Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 13. Subs. for the words "any industrial establishment or in any class or group of industrial establishments" by Act No.38 of 1982 (w.e.f. 15.10.1982) 14. Subs. by Act No.38 of 1982 S.3 (w.e.f. 15.10.1982) 15. Subs. for the words "one thousands rupees". by Act No.38 of 1982 S.3(i) (w.e.f. 15.10.1982) SECTION 02: DEFINITIONS In this Act, unless there is anything repugnant in the subject or context, 1 [(i) "employed person" includes the legal representative of a deceased employed person; (ia) "employer" includes the legal representative- of a deceased employer; (ib) "factory" means a factory as defined in clause (m) of Section 2 of the Factories Act, 1948 (63 of 1948), and includes any place to which the provisions of that Act have been applied under sub-section (1) of Section 85 thereof] 2 [(ii) (industrial or other establishments) means any 3 [(a) tramway service, or motor transport service engaged in carrying passengers or goods or both by road for hire or reward; (aa) air transport service other than such service belonging to or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India]; (b) dock, wharf or jetty; 4 [(C) inland vessel, mechanically propelled] (d) mine, quarry or oil-field; (e) plantation; (f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale; 5 [(g) establishment in which any work relating to the construction, development. or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation or to the supply of water, or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on; 6 [(h) any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein, and other relevant circumstances, specify, by notification in the Official Gazette]; 7 [(iia) "mine" has the meaning assigned to it in clause (j) of sub- section (1) of Section 2 of the Mines Act, 1952 (35 of 1952) 8 [( iia) "legal representative" means the person who in law represents the estate of a deceased employed person] 9 [(iii) "plantation" has the meaning assigned to it in clause (f) of Section 2 of the Plantations Labour Act, 1951 (69 of 1951)] (iv) "prescribed" means prescribed by rules made under this Act; (v) "railway administration" has the meaning assigned to it-in clause (6) of Section 3 of the Indian Railways Act, 1890 (9 of 1890); and] 10 [(vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes (a) any remuneration payable under any award or settlement between the parties or order of a Court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; But does not include- (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;' (2) the value of any house-accommodation, or of the supply of light, water, medical -attendance or other amenity or of any 'service excluded from the computation of wages by a general or special order of the State Government; , (3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d)] Footnotes: 1. Subs. by Act No.53 of' 1964 S.3(i) (w.e.f. 1.2.1965) 2. Subs. for the words "Industrial Establishments" by Act No.38 of 1982 S.4(a) (w.e.f. 15.10.1982) 3. Subs. by Act No.53 of 1964 S.3(ii) (w.e.f. 1.2.1965) 4. Subs. by Act No.68 of 1957 S.3(i) (w.e.f. 1.4.1958) 5 Ins. by Act No.68 of 1957 S,3(ii)(2) (w.e.f. 1.4.1958) 6 Ins. by Act No.38 of 1982 S4(b) (w.e.f. 15.10.1982) 7 Ins. by Act No.53 of 1964 S.3(iii) (w.e.f. 1.2.1965) 8 This clause was inserted by Bom.48 of 1955 S.2(a). - 9 Subs. by Act 53 of 1964 S.3(iv) (w.e.f. 1.2.1965) 10 Subs. by Act No.68 of 1957 S.3(iii) (w.e.f. 1.4.1958)
GUJARAT By Section 2 of Act No.26 of 1967 the provisions of the Payment of Wages (Bombay Amendment Act, 1955 were extended to the whole of Gujarat)JAMMU & KASHMIR In Sec.2 after sub-clause (9) of clause (ii) insert "(h) 'forest' where any category of labour is engaged by the Government or by a forest lessee in any operation connected with the extraction of timber or fire wood or exploitation of the forest in any other manner. - J.K Act 6 of 1974.KARNATAKA The amendment made by Bom Act 48 of 1955 in force in Belgaum area repealed by Karnataka Act 2 of 1977, S.2 & Sch. MADHYA PRADESH The Payment of Wages (Madhya Pradesh Amendment) Act 1964- w.e.f. 15.5.64 Section 2: Amendment of Section 2-In Section 2 of the Payment, of Wages Act, 1936 (IV of 1936) hereinafter referred to as the Principal Act)(a) after clause (i), the following clause shall be inserted, namely"(ia) 'Industrial Court' means the Industrial Court constituted under Section 9 of the Madhya Pradesh Industrial Relations Act, 1960 (26 of 1960); (b) after clause (ii), the following clause shall be inserted, namely,(ii-a) 'Legal Representative' means the persons who in law represents the estate of a deceased employed person". MAHARASHTRA The Payment of Wages (Bombay Amendment) Act, 1955 (Act XLVIII of 1955) Section 2: Amendment of Section 2 of Act IV of 1936; In Section 2 of the Payment of Wages Act, 1936, in its application to the State of Bombay (hereinafter referred to as the said Act) (a) after clause (ii) the following new clause shall be inserted, namely,- "(iia) 'legal representative' means the person who in law represents the estate of a deceased employed person"; (b) for clause (iii) the following shall be substituted, namely (iii) 'Plantation' means(a) any estate which is maintained for the purpose of growing cinchona, rubber, coffee or tea, or (b) any farm which is maintained for the purpose of growing sugarcane and attached to a factory established or maintained for the manufacture of sugar:
TAMIL NADU Section 2. Amendment of Section 2, Central Act IV of 1936.-(Prior to its amendment by Act 53 of 1964) In clause (ii) of Section 2 of the Payment of Wages Act,1936 (Central Act IV of 1936) (hereinafter referred to as the Principal Act) (i) in item (a), after the words 'Omnibus Service" the words 'or motor of other transport undertaking' shall be added; (ii) after item (g), the following item shall be added, namely,- "(h) establishment or undertaking which the State Government may, by notification in the Official Gazette, declare to be an Industrial Establishment for the purpose of this Act" (Vide TN. Act IX of 1959) S.2, 19.8.1959. SECTION 03: RESPONSIBILITY FOR PAYMENT OF WAGES Every employer shall be responsible for the payment to, persons employed by him of all wages required to be paid under this Act: 1 [Provided that, in the case of persons employed (otherwise than by a contractor) (a) in factories, if a person has been named as the manager of the factory (under clause (f) of sub-section (1) of Section 7 of the Factories Act, 1948 (63 of 1948) then the person so named, the employer jointly or severally; (b) 2 [in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishment;] (c) upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, the person so named, the person so responsible to the employer, or the person so nominated, as the case may be, 3 [shall also be responsible] for such payment.] Footnotes: 1 This proviso was substituted by Born. 62 of 1953, S.2 2 Subs. by Act 38 of 1982, S.5 (w.e.f. 15.10.1982) 3 Subs. by Act No-53 of 1964 (w.e.f. 1.2.1965)
GUJARAT Same as that of Maharashtra. (Guj. Act 26 of 1961) KARNATAKA Amendment made by Bom.Act 62 of 1953 in force in Belgaum area repealed by Karnataka Act 2 of 1977. MADHYA PRADESH Section 3: Amendment of Section 3 - for the proviso to Section 3 of the Principal Act, the following proviso shall be substituted, namely: "Provided that, in the case of persons employed otherwise than by a Contractor]- (a) in factories, if a person has been named as the manager of the factory under clause (j) of sub-section (1) of Section 7 of the Factories Act, 1948, (63 of 1948), then the person so named and the employer jointly and severally; (b) in industrial establishment, it there is a person responsible to the employer for the supervision and control of the Industrial establishment, than the person so responsible and the employer jointly and severally; (c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned then the person so nominated; shall be responsible for such payment." [Vide M.P. Act XI of 1964]. MAHARASHTRA Amendment of Section 3 of the Act IV of 1936 - In Section 3 of the Payment of Wages Act, 1936 (hereinafter referred to as the. said Act), for the proviso the following shall be substituted, namely. "Provided that, in the case of persons employed otherwise than by a Contractor,- I(a) in factories, if a person has been named as the manager of the factory, under clause (j) of sub-section (1) of Section 7 of Factories Act, 1948 (LXIII of 1948) then the person so named, the employer jointly or severally, (b) in industrial establishment, if there is a person responsible to the employer for the supervision and control of the industrial establishment then the person so responsible and employer, jointly and severally-, (c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned then the person so nominated, shall be responsible for such payment." (Vide Acts LXII of 1953 and XIII of 1961). SECTION 04: FIXATION OF WAGE-PERIODS (1) Every person responsible for the payment of wages under Section 3 shall fix periods (in this Act referred to as Wage-period) in respect of which such wages shall be payable. (2) No wage-period shall exceed one month. SECTION 05: TIME OF PAYMENT OF WAGES (1) The wages of every person employed upon or in - (a) any railway, factory or 1 [industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day, (b) any other railway, factory or 2 [industrial or other establishment shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect- of which the wages are payable: 3 [Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.] (2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated: 4 [Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.] (3) The 5 [State Government] may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) 6 [or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government] from the, operation of this section in respect of the wages of any such persons or class of such persons: 7 [Provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.) (4) 8 [Save as otherwise provided in sub-section (2), all payments] of wages shall be made on a working day. Footnotes: 1 Subs. by Act No.38 of 1982 S.6 (w.e.f. 15.10.1982) 2 Subs. by Act No.38 of 1982 S.6 (w.e.f. 15.10.1982) 3 Added by Act No.53 of 1964 S.5 (w.e.f.-I.2.1965) 4 Added by Act No.53 of 1964 S.5 (w.e.f. 1.2.1965) 5 These words were subs. for the words "Governor-General in council" by the A.O. 1937. 6 Ins. by Act No.53 of 1964 S.5(iii)(a) (w.e.f. 1.2.1965) 7 Ins. by Act No.53 of 1964 S.5(iii)(b) (w.e.f. 1.2.1965) 8 Subs. by Act No.53 of 1964 S.5(iv) (w.e.f. 1.2.1965)
ANDAMAN AND NICOBAR The Payment of Wages (Andaman and Nicobar Islands Amendment) Regulations, 1965 (No. 5 of 1965).Amendment of Section 5 - In the Payment of Wages Act, 1936 (IV of 1936), in its application to the Union Territory of Andaman and Nicobar Islands, in Section 5, for sub-section (1), the following sub-section shall be substituted, namely- "5. (1) The wages of every person employed upon or in any railway, factory or industrial establishment shall be paid before the expiry of such number of days after the last day of the wage-period in respect of which the wages are payable as the State Government may by general or special order, specify and different number of days may be specified for different areas; so, however, that the number of days so specified shall not exceed the wage period next following the wage-period in respect of which the wages are payable. SECTION 06: 1 [WAGES TO BE PAID IN CURRENT COIN OR CURRENCY NOTES All wages shall be paid in current coin or currency notes, or in both:
Explanation. -For the purpose of this section, the expressions- (1) "wages' shall include any bonus of the description given in sub-clause (1) of clause (vi) of Section 2; and (2) ˜bonus" means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court, and also includes any bonus of the description given in sub-clause (1) of clause (vi) of Section 2:] 2 [Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.] Footnotes: 1 S.6 was subs, by Mah. 13 of 1961, S.4. 2 Ins, by Act No.29 of 1976 (w.e.f. 12.11.1975)
ANDHRA PRADESH In Section 6, add another proviso- ˜Provided further that the State Government may, by notification in the Andhra Pradesh Gazette, specify the industrial establishments, the employers of which shall pay to the persons employed therein, the wages either by cheque or by crediting the wages in their bank account.-AP Act 15 of 1982, S.2" Assam In Section 6, add the following proviso and Explanation:- ˜Provided that notwithstanding anything contained in the Payment of Bonus Act, 1965, one-third of the amount of bonus payable to an employed person in a particular year in excess of rupees forty may be paid or invested into the National Defence Certificates or National Savings Certificates (First Issue), if the employed person records its assent by furnishing a no objection certificate, in the manner to be prescribed, to his employer. Explanation. -For the purposes of this section, the expression (1) "wages shall include any bonus of the description given in sub-clause (1) of clause (vi) of Section 2; and (2) "bonus" means bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause 1 of clause (vi) of Section 2."-Assam Act I of 1970 Section 2. BIHAR The Payment of Wages Bihar Amendment Acts IV of 1961 and 4 of 1963, Section 2-Amendment of Section 6 of Act IV of 1936-To Section 6 of the Payment of Wages Act, 1936 (IV of 1936) the following proviso shall be added, namely: "Provided that where the amount of entire bonus payable during a year to an employed person under the terms of the employment or under any award or settlement or orders of a Court exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for that year such excess shall be paid to him or invested on his behalf in the manner prescribed." GUJARAT The Payment of Wages (Gujarat Provisions for Uniform Application and Amendment) Act, 1961 (Guj. Act 26 of 1961) MAHARASHTRA Section 4: Amendment of Section 6 of Act IV of 1936- In the Payment of Wages Act, 1936, as in force in the whole of the State of Maharashtra (hereinafter referred to as "the Principal Act") for Section 6 the following shall be substituted "6. Wages to be paid in current coins or currency notes.-All wages shall be paid in current coins or currency notes, or in both: Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed. Explanation. -For the purpose of this section, the expression- (1) "Wages" shall include any bonus of the description given, in sub-clause (1) of clause (vi) of Section 2, and (2) "bonus" means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause (1) of clause (vi) of Section 2" (Vide Mah. Act XIll of 1961). ORISSA In S.6 of the Principal Act, a proviso similar to the proviso of the Maharashtra Act added by Orissa Act 4 of 1961. SECTION 07: DEDUCTIONS WHICH MAY BE MADE FROM WAGES (1) Notwithstanding the provisions of sub-section (2) of Section 47 of the Indian Railways Act', 1890 (9 of 1890), the wages of an employed person shall be paid to him without deduction of any kind except those authorised by or under this Act. 1 [Explanation I] Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages. 2 [Explanation II] Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely (i) the withholding of increment or promotion (including the stoppages of increment at an efficiency bar); (ii) the reduction to a lower post or time-scale or to a lower stage in a time-scale; or (iii) suspension; shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements if any, which may be specified in this behalf by the State Government by notification in the Official Gazette. (2) Deduction from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely (a) fines; (b) deduction for absence from duty; (c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody or for loss of money for which he is required to account where such damage or loss is directly attributable to his neglect or default; 3 [(d) deductions for house-accommodations supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsiding house-accommodation which may be specified in this behalf by the State Government by notification in the Official Gazette]; (e) deductions for such amenities and services supplied by the employer as the 4 [*****] - 5 [State] Government 6 [or any officer specified by it in this behalf] may, by general or special order authorise Explanation.- The word "services" in 7 [this clause] does not include the supply of tools and raw materials required for the purposes of employment; 8 [(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof or for adjustment of over-payment of wages; (ff) deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof; (fff) deductions for recovery of loans granted for house building or other purposes approved by the State Government and the interest due in respect thereof (g) deductions of income-tax payable by the employed person; (h) deductions required to be made by order of Court or other authority competent to make such order; (i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined in Section 58-A of the Indian Income Tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the 9 [State] Government during the continuance of such approval; 10 [*****] (j) deductions for payment to cooperative societies approved by the 11 [State] Government 12 [or any officer specified by it in this behalf] or to a Scheme of insurance maintained by the Indian Post Office 13 [***] 14 [(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or 15 [****] in furtherance of any savings scheme of any such Government] 16 [(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it in this behalf, during the continuance of such approval; (kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926); 17 [(I) deductions for payment of insurance premia on Fidelity Guarantee Bonds; (m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes; (n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration, whether in respect of fares, freight, demurrage, wharfage and carnage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise; (o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his .neglect or default.] 18 [( p) deductions, made with the written authorisation of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify.) 19 [ (q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.) 20 [ (3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed (i) in cases where such deductions are wholly or partly made for payments to cooperative societies under clause (j) of sub-section (2), seventy-five per cent of such wages, and (ii) in any other case, fifty per cent of such wages:
(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than the Indian Railways Act, 1890 (9 of 1890)]. Footnotes: 1 Re-numbered by, Act No.68 of 1957, S.5 (w.e.f. 1.4.1958) 2 Ins. by Act No. . 68 of 1957 (w e.f. 1.4.1958) 3 Subs. by Act NO.68 of 1957, S.5 (w.e.f. 1.4.1958) 4 Omi by the A.O 1937. 5 These word was Subs. for the word "Provincial", by the A.O of' 1950 6 Ins. by Act No.53 of 1964, S.6(i)(a) (w.e.f. 1.2.1965) 7 Subs. by Act No.58 of' 1974 8 Subs, by Act No.53 of 1964, S.6(i)(b) (w.e.f. 1.2.1965) 9 These word was subs. for the word "Provincial", by the A.O. of 1950 10 Omi. by Ordinance 3 of 1940, S.2 11 These word was subs. for the word "Provincial", by the AO. of 1950 12 Iris, by Act No.53 of 1964, S.6(i)(a) (w.e.f. 1.2.1965) 13 Del. by Mali. 42 of 1961 S.2 14 Subs. by Act No.68 of 1957, S.5 (w.e.f 1.4.1958) 15 Del. by Mah. 13 of 1961, S.5 16 Ins. by Act 38 of 1982, S.7 (w.e.f. 15.10.1982) 17 Ins. by Act 53 of 1964, S.6 (w.e.f. 1.2.1965) 18 Ins. by Act No.29 of 1976. S.4 (w.e.f. 12.11.1975 19 Ins. by Act No.19 of 1977. S.2 (w.e.f. 30.6.1977) 20 Ins. by Act No.53 of 1964, S.6(ii) (w.e.f 1.2.1965)
BIHAR The Payment of Wages (Bihar Amendment) Act, 1956 - (Bihar Act XXVIII of 1956). Section 2: Amendment of Section 7 of Act IV of 1936, In clause (d) of sub-section (2) of Section 7 of the Payment of Wages Act, 1936 (IV of 1936), after the word, 'employer' the words "or by the State. Government or by a Statutory Housing Board or by such an Agency as the State Government may notify" shall be inserted. GUJARAT Amendment of Section 7 of Act IV of 1936 - In Section 7 of the Principal Act in sub-section (2), in clause (k), the words "for being deposited in any Post Office, Savings Bank" shall be deleted. (Vide Guj. Act XXVI of 1961.) KARNATAKA (1) In Section 7 of the Principal Act in sub-section (2), after cl. (p) the following clauses shall be added, namely, "(q) deductions to recover from a person re-employed after the termination of his former employment any amount paid to him from a provident fund or as a gratuity on such termination:
(r) Omitted' by Karnataka Act 2 of 1982, S.2 (w.e.f. 28.1.1982) (Vide S.3 of Karnataka Act 2 of 1977.) (2) The Amendment made by Born. Act 37 of 1956 in force in Belgaum area by Karnataka Act 2 of 1977, S.2 & Sch KERALA In Section 7 of the Payment of Wages Act, 1936 (Central Act IV of 1936) in sub-section (2), after clause (O), the following clause shall be inserted, namely: "(p) deduction for repayment to the State Government of the amount of financial aid granted. under the Kerala Financial Aid (to the Discharged or Dismissed Labour Rules, 1958"), (Vide Ker. Act XXXIV-of 1959). MADHYA PRADESH In sub-section (2) of Section 7, after clause (e) insert: "(ee)] deduction with the written authorisation of the person employed for payment of any subscription to any welfare scheme sponsored by the employees whether with or without participation of employer, such as Employees Death Relief Scheme and approved by such authority and in such manner as may be prescribed;" [(Vide M.P. Act XXXIII of 1976)]. MAHARASHTRA 1. In sub-section (2) of Section 7 of the Principal Act in clause (d), after the word "employer" the following shall be added, namely: "or the State Government, or the Bombay Housing Board constituted under the Bombay Housing Board Act, 1948, (Bom. LXIX of 1948), or such other agency as the State Government may, by notification in the Official Gazette, direct". (Vide Mah. Act 37 of 1956).2. The Payment of Wages (Maharashtra Amendment) Act, 1961 (Mah. Act XLII of 1961). Section 2, Amendment of Section 7 of Act IV of 1936 - In sub-section (2)- , (a) in clause (j) the word 'and' at the end shall be deleted; (b) After clause (k) the following new clause shall be added, namely; "(I) deduction made, with the consent of the person employed, for contribution towards any public charitable purpose which the State Government may by notification in the Official Gazette specify in that behalf." 3. Payment of Wages (Maharashtra Provision for Uniform Application and Amendment) Act, 1960 (Mah. Act XIII of 1961). Section 5: Amendment of Section 7 of the Act IV of 1936-In Section 7 of the principal Act, in sub-section (2), clause (k) the words for 'being deposited in any Post Office Saving Bank' shall be deleted. ORISSA In clause (d) of sub-Section - 2) of Section 7 of the Principal Act, after the words "supplied by the employers" the words "or by the State Government or by any Housing Board or Agency which the State Government may notify in this behalf shall be inserted. (Vide Orissa Act No.22 of 1956). PONDICHERRY In sub-section (2) of Section 7, after clause (d), the following clause shall be inserted, namely: "(dd) deductions for electricity supplied to the employed person by the Electricity Department of the Government of Pondicherry;" -Pondicherry Act No.9 of 1970, Section 2. TAMIL NADU In sub-section (2) of Section 7, insert the following clause after clause (d), namely: "(dd) deductions for electricity supplied to the employed person son by the Tamil Nadu Electricity Board under Section 5 of the Electricity (Supply) Act ' 1948 (Central Act 54 of 1948) (hereinafter in this Act referred to as the State Electricity Board."-T.N. Act XX of 1963 and T.N.A.L.O. 1970. In sub-section (2) of Section 7, after clause (g), the following clause shall be inserted "(gg) deductions of profession tax payable by the employed person to any local authority". (T.N. Act 47 of 1974). WEST BENGAL In sub-section (2) of Section 7, after clause (e), the following clause shall be inserted ''(ee) deductions for contribution to a fund created under a 'Death Benefit Scheme' approved by the State Government and designed to render pecuniary assistance to the nominees of a deceased employed person nominated in such manner as may be prescribed who had been a member of such a scheme: Provided that no deduction shall be made without written authorisation of the employed person in the form and manner prescribed in the scheme: Explanation I.- (1) Where the employed person has a family, a member of the family, shall be nominated. (2) Where the employed person has no family, any person may be nominated. Explanation II.-For the purpose of Explanation 1, - (1) The family of a male employed person shall include his wife, legitimate children, dependent parents, the widow and legitimate children of his predeceased son: Provided that if such employed person proves that his wife has ceased, under the personal law governing him or the customary law of the community to which the spouses belong, to be entitled to maintenance from him, the wife shall not be regarded as a member of his family: Provided further that such employed person may subsequently by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that his wife may continue to be regarded as a member of his family; (2) The family of a female employed person shall include her husband, legitimate children, dependent parents, husband's dependent parents, the widow and legitimate children of her pre-deceased son: Provided that such employed person may by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that her husband and his dependent parents have been excluded from her family: Provided further that such employed person may subsequently by a notice in writing to such authority cancel the aforesaid notice; and (3) If a legitimate child of an employed person or of a pre-deceased son of an employed person is validly adopted by any other person; under any law in force for the time being, such child shall not be a member of the family of such employed person. (W.B, Act 26 of 1975 as amended by W.B. Act 14 of 1981). SECTION 08: FINES (1) No fine shall be imposed on any employed person save in , respect of such acts and omissions on his part as the employer with the previous approval of the 1 [State] Government or of the prescribed authority may have specified by notice under sub-section (2). (2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of persons employed upon a railway (otherwise than in a factory, at the prescribed place or places. (3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines. (4) The total amount of fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to 2 [three per cent of the wages] payable to him in respect of that wage-period. (5) No fine shall be imposed on any employed person who is under the age of fifteen years. (6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from the day on which it was imposed. (7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed. (8) All fines and all realisations thereof shall be recorded in a register to be kept by the persons responsible for the payment of wages under Section 3 in such form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the person employed in the factory or establishment as approved by the prescribed authority, 3 [but in the case of any factory or establishment to which the Bombay Labour Welfare Fund Act, 1953, applies, all such realisations shall be paid into the Fund constituted under the said Act.] Explanation. - When the, persons employed upon or in any railway, factory or 4 [industrial or other establishment] are part only of a staff employed under the same management, all such realisations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority. Footnotes: 1. These word was subs. for the word "Provincial", by the A.O of 1950 2. Subs. by Act 38 of 1982 (w.e.f. 15.10.1982). 3. Added by Bom 40 of 1953, S.23 4. Subs. by Act 38 of 1982, S.8(b) (w.e.f. 15.10.1982) STATE AMENDMENTS GUJARAT (BOMBAY AREA) Same as that of Maharashtra MAHARASHTRA In its application to the Bombay Area of the State of Maharashtra, in Section 8, add the following to sub-section (8) before the Explanation, namely, "but in the case of any factory or establishment to, which the Bombay Labour Welfare Fund Act, 1953, applies, all such realisations shall be paid into the Fund constituted under the said Act" - Bom. Act XL of 1953, Section 23."KARNATAKA In its application to the State of Mysore, in Section 8, add the following before the Explanation, namely:- Same as in Maharashtra, except for the title of the Act, which is, 'Mysore Labour Welfare Fund Act, 1965.-Mys. Act XV of 1965, Section 25 (5th August, 1965). KERALA In Sec.8 in its application to the State of Kerala, in sub-section (8) before the Explanation, the following proviso shall be inserted, namely: "Provided that in the case of any establishment to which the Kerala Labour Welfare Fund Act, 1975, applies all such realisations shall be paid into the fund constituted under that Act." Kerala Act No. 11 of 1977, Section 43. PUNJAB, HARYANA See Proviso 11 to Section 10(2) of the Punjab Labour Welfare Fund Act, 1965 (Punj. Act XVII of 1965) and Act 31 of 1966, Section 88. TAMIL NADU. In Section 8 of the Payment of Wages Act, 1936 (Central Act IV of 1936), in sub-section (8), in the last sentence the following shall be added at the end, namely: "but in the case of any establishment to which the Tamil Nadu Labour Welfare Fund Act, 1972 applies all such realisation shall be paid into the Fund constituted under the aforesaid Act." vide T.N. Act 36 of 1972. UTTAR PRADESH Add the following proviso to sub-section 8 of Section 8: "Provided that in the case of any factory or establishment to which the UP. Welfare Fund Act, 1965 applies, all such realisations shall be paid into the Fund established under the said Act.-U.P. Act XIV of 1965, Section 23 (26th July, 1965). SECTION 09: DEDUCTIONS FOR ABSENCE FROM DUTY (1) Deductions may be made ,under clause (b) of sub-section (2) of Section 7 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work. (2) The amount of such deductions shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made, a larger proportion than the period for which he was absent bears to the total period, within such wage-period, during which by the terms of his employment, he was required to work:
1 [State] Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice. 2 [Explanation. -For the purposes of this section, an employed person shall be deemed to be absent from the place where he is required to work, if although present in such place, he refuses in pursuance of a stay-in-strike or for any other cause which is not reasonable in the circumstances, to carry out his work). 1 These word was subs. for the word "Provincial", by the A.O of 1950 2 Added by Act No.22 of 1937, S.2. SECTION 10: DEDUCTIONS FOR DAMAGE OR LOSS 1 (1) A deduction under clause (c) or clause (O) of sub-section (2) of Section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person. (1-A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (O) of sub-section (2) of Section 7 until the employed person has been given an opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.] (2) All such deductions and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under Section 3 in such form as may be prescribed. SECTION 11: DEDUCTIONS FOR SERVICES RENDERED A deduction under clause (d) or clause (e) of sub-section (2) of Section 7 shall not be made from the wages of an employed person, unless the house-accommodation, amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the house-accommodation, amenity or service supplied and, in the case of a deduction under the said clause (e), shall be subject to such conditions as 2 [****] the 3 [State] Government may impose. Footnotes: 1 Subs. by Act No.53 of 1964, S.7 (w.e.f. 1.2.1965) 2 Omitted by the A.O 1937 3 These word was subs. for the word "Provincial", by the A.O. of 1950 STATE AMENDMENTS Section 11 -A PONDICHERRY After Section 11, insert the following, namely: "11-A. The employer shall, if so required by a requisition in writing, by the Electricity Department of the Government of Pondicherry or by an officer authorised by it in this behalf, make the deductions authorised under clause (dd) of sub-section (2) of Section 7 from the wages of the employed person and remit the amount so de- ducted in such manner as the State Government may, by general or special order, specify.-Pondi. Act IX of 1970, Section 3 (25th May, 1970). TAMIL NADU In its application to the whole of the State of Tamil Nadu, after Section 11, insert the following section, namely : "11-A. Deductions in respect of house-accommodation.- The employer shall make the deductions authorised under clause (d) of sub-section 2 of Section 7 from the wages of the employed person and remit the amount so deducted in such manner as the State Government may, by general or special order, specify.-" T.N. Acts IX of 1959, Section 4 and XIV of 1962, Section 2 and First Schedule (9th January, 1963). Section 11-B TAMIL NADU Same as Section 11 -A in Pondicherry-T.N. Act XX of 1963, Section 3 (6th November, 1963) Section 11-C TAMIL NADU The following section inserted vide T.N. Act 47 of 1974. "11-C. Deductions in respect of profession tax.-The employer shall, if so required by a requisition in writing, by the local authority concerned or by an officer authorised by it in this behalf, make the deductions authorised under clause (gg) of sub-section (2) of Section 7 from the wages of the employed person and remit the amount so deducted to the credit of the local authority concerned in such manner as the State Government may, by general or special order', specify." SECTION 12: DEDUCTION FOR RECOVERY OF ADVANCES Deductions under clause (f) of sub-section (2) of Section 7 shall be subject to the following conditions, namely (a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for travelling expenses; 1 [(aa) recovery of an advance of money given after employment began shall be subject to such conditions as the State Government may impose); (b) recovery of advances of wages not already earned shall be subject to any -rules made by the 2 [State) Government regulating the extent to which such advances may be given and the instalments by which they may be recovered. SECTION 12A: 3 [ DEDUCTIONS FOR RECOVERY OF LOANS . Deductions for recovery of loans granted under clause (fff) of sub-section (2) of Section 7 shall be subject to any rules made by the State Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.] Footnotes: 1. Ins. by Act No.53 of 1964, S.8 (w.e.f. 1.2.1965) 2. These word was subs. for the word "Provincial", by the A.O of 1950 3. Ins. by Act No.53 of 1964, S.9 (w.e.f. 1.2.1965) SECTION13: DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE SOCIETIES AND INSURANCE SCHEMES Deductions under clause (j) 1 [and clause (k)] of subsection (2) of Section 7 shall be subject to such conditions as the 2[State] Government may impose.
KARNATAKA In Section 13 of the Principal Act: (1) for the headline the following heading shall be substituted, namely: "13. Other deduction," (2) for the words, letters and brackets, "under clause (j) and clause (k) the words, letters and brackets, "under clause (j), clause (k) and clause (q)'' shall be substituted." (Vide Section 4 of Karnataka Act No.2 of 1977 as amended by Karnataka Act 2 of 1982, S.3). SECTION 13A: 3[ MAINTENANCE OF REGISTERS AND RECORDS (1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed. (2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made therein]. SECTION 14: INSPECTORSHIP (1) An Inspector of Factories appointed under 4 [Sub-section (1) of Section 8 of the Factories Act, 1948 (63 of 1948)], shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him. (2) The 5 [State Government] may appoint Inspectors for the purposes of this Act in respect of all persons employed upon a Railway (otherwise than in a factory) to whom this Act applies. (3) The 6 [State] Government may by notification in the 7 [official Gazette], appoint such other persons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local limits, within which and the class of factories and 8 [industrial or other establishments] in respect of which they shall exercise their functions. 9 [(4) An Inspector may, (a) make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act or rules made there under are being observed; (b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of any railway, factory or 10 [industrial or other establishment] at any reasonable time for the purpose of carrying out the objects of this Act; (c) supervise the, payment of wages to persons employed upon any railway or in any factory or 11 [industrial or other establishment]; (d) required by a written order the production at such place, as may be prescribed, of any register or record maintained in pursuance of this Act and take on the spot or otherwise statements of any persons which he may consider necessary for carrying out the purposes of this Act; (e) seize or take copies of such registers or documents of portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by an employer; (f) exercise such other powers as may be prescribed:
(4-A) The provisions of the 12 [Code of Criminal Procedure, 1973] (2 of 1974), shall, so far as may be, apply to any search or seizure under this sub-section as they apply to any search or seizure made under the authority of a warrant issued under 13 [Section 94 of the said Code.] (5) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860). Footnotes: 1. Ins. by Ordinance No. III of 1940, S.3 2. These word was subs. for the word "Provincial", by the A.O. of 1950 3. Ins. by Act No.53 of 1964, S.1O (w.e.f. 1.2.1965) 4. Subs by Act No.68 of 1957, S.6 (w.e.f. 1.4.1958) 5. These words were subs. for the words "Governor General in Council", by the A.O. 1937 6. These word was subs. for the word "Provincial", by the A.O. of 1950 7. These word were subs. for the words "Local Official Gazette", by the A.O. 1937 8. Subs. by Act No.38 of 1982, S.9 (w.e.f. 15.10.1982). 9. Subs. by Act No.53 of 1964, S. II (w.e.f. 1.2.1965) 10 Subs. by Act 38 of 1982 S.9(b) (w.e.f. 15.10.1982) 11 Subs. by Act 38 of 1982 S.9(b) (w.e.f. 15.10.1982) 12 Subs. by Act 38 of 1982, S.9(c) (w.e.f. 15.10.1982) 13 Ins. by Act 53 of 1964, S. 1 2. SECTION 14A: 1 [ FACILITIES TO BE AFFORDED TO INSPECTORS Every employer shall afford an Inspector all reasonable facilities for making any entry, inspection, supervision, examination or inquiry under this Act]. SECTION 15: CLAIMS ARISING OUT OF DEDUCTIONS FROM WAGES OR DELAY IN PAYMENT OF WAGES AND PENALTY FOR MALICIOUS OR VEXATIOUS CLAIMS (1) The 2 [State] Government may, by notification in the 3 [Official Gazette], 4 [appoint 5 [a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State or] any Commissioner for Workmen's Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages 6[of persons employed or paid in that area, including all matters incidental to such claims:
7[( 1 -A) A person shall not be qualified for appointment as an authority under this Act unless, he is a Commissioner for Workmen's Compensation or any other officer with experience as a Judge of a Civil Court or 8[as a stipendiary Judicial Magistrate or as a Judge of a Labour Court or as Judicial member of the Industrial Court constituted under the Bombay Industrial Relations Act, 1946, or as a presiding officer of a Tribunal constituted under the Industrial Disputes Act, 1947.) (1-B) Where more than one person are appointed for any specified area as authorities under sub-section (1), the State Government may by general or special order make such arrangements as it thinks fit for the distribution of the work among the authorities so appointed] 1 Ins. by Act 53 of 1964, S.12. 2 This word wits substituted for the word "Provincial", by the A.O. of 1950 3 Subs. for the words "Local Official Gazette, by the A.0 1937 4 Subs. by Born. 48 of 1955, s.3(a) 5 Ins. by Act No.53 of 1964, S.13(i)(a) (w.e.f. 1.2.1965) 6. Subs. by Act No.53 of 1964, S.13(i)(b) (w.e.f. 1.2.1965) 7. Ins. by Born. Act 48 of 1955, S.3(b) 8. These words were subs. for the portion beginning with "of a Labour Court" and ending with "Judicial Magistrate" by Mah. 13 of 1961, S 6. (2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, '[or a representative union registered as such under the Bombay Industrial Relations Act, 1946], or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3 ) 2[and in case of death of the employed person, it-shall be lawful for his legal representative to make an application for such direction.] Provided that every such application shall be presented within 3[twelve months] from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made, as the case may be: Provided further that any application may be admitted after the said period of 4 [twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period. (3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further inquiry (if any) as may be necessary may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the 5[refund to the employed person or his legal representative, as the case may be] of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and 6 [not-exceeding twenty five rupees in the latter, and even if the amount deducted or the delayed,wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees); 7 [and the authority may direct the payment of such compensation in cases. |
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