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payment of wages act
payment of wages act
Background:
Employees hardship- 1.inordinate delay in receiving wages 2.imposition of fine 3.unauthorised deductions from meager wages .The Royal
Commission on Labour 1929 in India – examined problem and jaskhanamade recommendation -Based on rcommendations act passed
Object :
The act was passed a) to ensure the payment of wages in particular forms at regular intervals b).without unauthorised deductions.
Any agreement made before or after the commencement of this act , whereby the an employed person relinquished any rights conferred
by this act shall be null and void.
Application :
Sec 1(2) sec1(5)-empowers state govt ext provision.
employed in any factory To any class of persons employed in any industrial estd
Employed upon by any railway In any class or group of industrial estds
fulfilling a contract with railway admin
SEC6:Mode of payment
Current coins/current notes /both; by cheque or credit to bank A/C
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SEC 7:DEDUCTIONS
7(2)(l)
–Insurance Premium or fidelity gurantee bond.
7(2) Recovery (m)--Losses on A/C of acceptance of counterfeit / base coins mutilated/ forged currency notes
Of Losses- (n)-Losses on A/C of failure to invoice , to bill, to collect; charges due- respect of fares , freight , demurrage , wharfage,
sustained by carnage; respect of sale of food in catering estd / commodities in grain shops.
Railway Admin (o)- Losses on A/C of rebate /refund incorrectly granted by employed person (default/ neglect)
Limit Of Deduction
SEC7(2)-Deduction under this sec should not exceed
1.75% of such wages-where payment wholly /partly to be made to co-operative societies .
2.50% in other cases
SEC7(3)-Total deduction from wages due to employed persons
SEC7(4)-Recovering from wages of employee any amt payable by such person under any law for the time being in force except Indian
Railways Act .
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Powers of Inspectors
1. Examine and enquire –provisions of act and Rules thereunder compiled .
2. Enter, Inspect, search any premises-of rly,facty,Indus.estd-@any reasonable time –with or w/o such assistance
3. Supervise payment of wages –in rly,facty,Indus.estd-to employed person
4. Require by written order –production of any register /record or take on spot or statement of any person .
5. Seize/take copies of register/document /operation-in respect of offence believed to committed by employer U/this act .
6. Exercise such other power that may be prescribed.
*They can’t compel person to make statement ,in case of search/seizure .they are deemed to be public servant within meaning of IPC.
SEC 14(A)-Facilities –Reasonable facilities for entry, inspection, supervision , examination provided.
SEC 15 (2)-PROVISO 2-Power of payment of wages authority to admit an appln even after period of limitation providd there is sufficient cause
for not making the appln given by applicant
* Prem Narayan Amirthlavarma Vs.Divisional Traffic Mnager .Jaichand
The question of condon of delay can be decided after hearing boththe parties and not before it
* sitaramVs.Nagrasana
Sufficient cause is not a mere personal opinion of authority it must be decided by applying proper legal principles.
*Anant ram Vs.Asst.Engineer Lab IC
Parties fully participated in proceedings without raising objection as to limitation .so it is deemed as if there is implication and as such the
authorities can’t permit theopposite party to agitate the question of limitation .
Jurisdiction Of Payment Of Wages Authority
Territorial Jurisdiction
Liabiliy for payment of wages Arises at place where wages are paid /payable..In absence of such, the place of residence of employer.
From the following orders and directions of payment of wages by authority an appeal can be preferred
I. Order directiong employer or to the persons responsible to refund deduction wrongfully made /pay delayed wages
II. Order directing payment of compensation to the employee U/S 15(3)
III. Order Imposing penalty U/S 15(4)
Time :Appeal can be made within 30 days from the date on which the ordr or direction appealed against was made.
Place:In presidency town before the court of small causes and in other places before district court within which jurisdiction industrial estd is
situates
Who can appeal .
1.By Employer /Person responsible Sec 17(1)(a)
If the total sum directed to be paid by way of wages and compensation exceed Rs.300/-
Such direction has the effect of imposing on the employer /other person a financial liability exceeding Rs.1000/-
2.By Employee/Legal practioner /an official of regd.trade union authorized in writing in this behalf/Inspector /Any other person
permitted by authority Sec 17(1)(b)
If the total amt of wages claimed to have been withheld from the employed person exceed Rs.25/-
From the unpaid group to which the employed person belongs or belonged exceeds Rs.50/-
3.By person directed by authority to pay penalty U/S 15(4) Sec 17(1)(c)
Filing :Appeal must be accompanied by certificate by the authority specifiying that appellant has deposited the amount payable under the
direction appealed against.
Sec 17(2)- An order made by the authority for the appln made by employee is final unless an appeal is made against order or direction .
Sec 17(3)- When employee prefers an appeal ,pending decision of appeal the authority withhold the payment of any sum in deposit in it .
Sec 17(4)- The court of appeal may if thinks fit submit question of law for decision of H.C .And decide the matter in conformity with the
decision of H.C.
on ground of default: Appeal filed U/S 17 cannot be dismissed on mere ground of default of the appellant .(as U/CPC Rule 17 Order XLI )it
shud be decided on merits as U/Rule 12 of the Act
The act does not contemplate a right of 2nd appeal .However a revision appln U/S 115 OF CPC is maintainable to the High Court .
*J.R.Puraswami Vs. S.G.Shukla
Appeal filed U/S 17 cannot be dismissed on mere ground of default.
*N.E.Railway Vs. P.N.Tiwari
Authority U/S 15 is not a court but U/S 17 is a court and persona designate
Attachment Of Property –Sec 17A ; procedure of attachment (as cpc)- sec 17-A(2)
After filing claim appln /after an appeal preferred ,decision has been taken on satisfaction by the authority that when the person responsible to
make payment likely to evade directing the attachment of somuch of property of the employer /other person sufficient to satisfy the amout
payable under such direction.
Attachment order made after hearing the concerned persons and satisfied of having necessity of such an order so as to prevent the evasion of
payment under the act .
Enhanced punishment
SEC20(5)Repeatation of offence within period of two years –Imprisonment :3 months or fine-upto 1000/- or both .
SEC20(6)Failure or willfully neglects to pays the wages within fixed date –addl fine upto 50 /- for each day .
Procedure In trial Of Offence SEC 21(1).
Complaints entertained only when a claim appln has been filed .Following it the appellate court grant it wholly or in part and sanction making
the complaint. B4 granting sanction against opportunity given to the person to show cause .The authority shall not grant if default was due to
1. bonafide error or dispute
2. Occurrence of emergency or existence of extraordinary circumstances
3. Failure of employee to accept the payment
U/S 21(3)- court take cognizance of following offence when made by Inspector/any person with his sanction
1. Not fixing the wage period in acc with s.4
2. Not paying the wages in current coins or currency or both U/S 6.
3. Non compliance with any rule and the act
4. Contravention of Sec 20(3)
5. Contravention of Sec 20(4)
U/S 22- Bar Of Suits
The amt claimed form subj matter of appln pending before the authority U/S 15
The amt claimed form subj of direction U/S 15 in fav of plaintiff
The amt claimed has been adjudged in a proceeding U/S 15 not to be owed to the plaintiff.
The amt claimed could have been recovered by appln U/S 15.
North Eastern Rly Vs.Durga Prasad
Case with respect to wages during the subsistence of relationship of employer and employee B/Wparties .Therefore sec 15 of the Act would be
clearly applicable and that a civil suit is barred under sec 22.
MSRT Corp Vs. R.H.Lad
Suit for recovery of arrears of pay , PF,gratuity or bonus pending claim appln U/S 15 is not barred .
U/S 22-A-Protection of action taken in good faith
Immunity from suit , prosecution or other legal proceeding-to govt /any officer for anything done in good faith .
U/S 23 –Contracting Out Prohibited
Any agreement made before or after the commencement of this act , whereby the an employed person relinquished any rights conferred by this
act shall be null and void.Right to
1.to receive wages 2.at proper time 3.without unauthorized deduction .
U/S 24 –Appln of Act to Railways, mines etc
U/S 25-Display by notice of abstracts of the act
State govt to make rules regulating the procedure to be followed by authorities and appellate court for carrying out provisions of the Act .
All rules made shall be subj to previous publication &date on which such rules shall come into force not less than 3 mon from the date on which
the draft rules are published . SEC26(2)
Central govt-Rules made are placed before both the houses.If before the expiry of 30 days both houses agree that any rule should be modified or
annulled it become effective thereafter .it does not affect anything done previously done. SEC26(3)