The objective of the Payment
of Wages Act, 1936
Wages and several other essential terms
are defined in Section 2 of the Payment of
Wages Act, 1936, as follows:
e Appropriate Administration
e Appropriate government, according to
section 2(i) of the Act, means:
e Railways, air transportation, mines, and
oilfields are all under the federal
government's control.
e Inall other circumstances, the State
Government is in charge.
The Act's principal goal is to prohibitimproper wage deductions and eliminate
unnecessary wage delays. Everyone who
works in a factory, on a railway, or as a
subcontractor on a railway, and everyone
who works in industrial or other facilities
needs to follow the payment of wages Act.
The State Government may extend the
provisions to any class of employees in
any establishment or class of
establishments by issuing a notification.
The Act provides for the regular and timely
payment of wages (on or before the 7th
day or the 10th day once the wage period
has exceeded 1000 workers) and the
prevention of improper deductions from
wages and arbitrary fines.
Importance of Payment of
Wages Act, 1936The policy primarily targets individuals in
the industry who earn less than INR 24000
per month. The Act further stipulates that
a worker cannot contract out of any
privilege or right conferred upon him by the
Act. The major goal of the Act is to control
the timely payment of a few types of
employees who operate in the industry. If
there is a problem or a grievance, prompt
and effective action may be taken to
resolve the claims and difficulties with the
help of this act. There are provisions in the
statute for a remedy for wages earned
while working in the office. Still, it does not
include any procedures for any form of
investigation into the office if there is a
dispute.
What does the legislation
mean by wage period fixation?The Payment of Wages Act, 1936 is
applicable to each individual who works in
the industry. The act ensures the salary of
the employees will be done within one
month only. The salary term cannot
exceed one month under any
circumstances. As a result, it is obvious
that payment of wages under the act can
be chosen on a day-to-day, week-to-week,
month-to-month, or fortnightly basis. It
indicates that wages should be paid on
time and without delay, and if they aren't,
the employer or their representatives will
be held responsible.
What is the definition of
deduction? What are the
advantages to the employee?A deduction is made for the employee's
loss, which would be applied to his salary.
The government permits these deductions
for acts performed by employees in
various industries. Deductions are used to
subtract a specified amount from an
employee's salary. As a result, when the
employer pays his employee's salary, he
deducts only what is required by law, not
what is convenient for him. The
deductions are imperative based on the
law and are beneficial to the employee. To
get a better understanding of the notion,
consider what cannot be referred to as a
deduction under the Payment of Wages
Act of 1936:
e If the company has halted the
employee's increment,
e If the employee has been placed onleave,
If the person was demoted because of
poor performance.
Only when the organisation has
reasonable grounds, can the grounds
mentioned above be used.