INTRODUCTION

In early days of industrial revolution, workers were exploited with exorbitant delays in payment of wages , arbitrary deductions and other unfair practices on the part of employers. Delay in the payment of wages, heavy fines for small omission and commission. Were quite common. Irregularities committed by employers were brought into the notice of ROYAL COMMISSION OF LABOUR IN INDIA.

OBJECT OF THE ACT

The main object of the Act is to ensure to workers, payment of their earned wages on due date without unauthorised deduction. y In order to ensure timely payment of wages, the Act regulations the manner of payment of wages at regular intervals. y It lays down permissible deductions to protect the employed persons against arbitrary or unauthorised deductions being made from their wages.
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Scope and coverage

The act applies to the whole of India. The act applies to the payment of wages to person employed in any factory and to prsons employed upon any railway by a railway administration. y The act doesnt apply to person whose wages exceed rs 1600 per month. This limit was raised from rs 1000 by amending
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DEFINITIONS
Employed person: employed person includes the legal representative of a deceased employed peson. y Employer: Employer includes the legal representative of deceased employer. y Industrial establishment: tram-way service or motor transport engaged in carrying passengers and goods or both by road for hire or reward.
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Inland vessel mechanically propelled. y Mine, quarry or a jetty y Plantation y Establishment in which any work relating to the constructions, development or maintenance of building, roads, bridges or canals or relating to transmission, or distribution of electricity, or any other form of power is being carried on.
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Wages: wages means all remunerations expressed in terms of money or capital of being expressed which would, if the terms of employment, expressed or implied are fulfilled, be payable to persons employed in his employment or of work done in such employment.

The expression wages does not include.

The bonus declared voluntarily on the basis of profits, and bonus which does not from part of 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. y The value of any house accommodation, of the supply of water, light, medical attendance, or other amenity or any service excluded from the computation of wages by a general or specific order of the state government.
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Any contribution paid by the employer to any pension or provided fund, and the interest accrued thereon; y Any travelling allowance or the value of any travelling concession; y Any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment.
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Any gratuity payable on the termination of employment. y Whether house rent are wages depends on the terms of the contract. It is so, if its payment is compulsory, otherwise it is not. y The term wages means wages earned and not potential wages. y No other meaning can be assigned to the term wages than is mentioned in the definitions.
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Responsibility for payment of wages

Every employer shall be responsible to wages to persons employed by him. But in the case of persons employed in factories, industrial establishment and railways, the following persons shall be responsible for payment of wages. y 1 In factories, the persons named as manager. y 2 In industrial establishment, the person who is responsible to the employer for the supervision and control of the industrial establishment.
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Rules for payment of wages

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Fixation of wage-period: every person responsible for the payment of wages under sec 3 shall fix periods, known as wages period in respect in respect of which such wages shal be payable. A wage period shall not exceed one month.

Time of payment of wages

If the number of persons employed in a factory, an industrial establishment or railways, including daily rated workers, is less than 1000, wages must be paid before the expiry of the seventh day after the last day of the wage period. In other cases, wages must be paid before the expiry of the expiry of the tenth day after the expiry of the wage period.

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 employment is termineted. y If the employment is terminated due to the closure of establishment for any reason other than a weekly or other recognised holiday, wages will be paid before the expiry of second working day from the day on which employment is being terminated.
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The state government may, by a general or special order, exempt the person responsible for the payment of wages from the operations of the above provisions in certain cases. y All payment of wages shall be made on a working day.
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