Payment of Wages Act

SAMRITI
Assistant Professor, VIPS
• Object, Scope and Application of the Act
• Definition of Wage
• Responsibility for Payment of Wages
• Fixation of Wage Period
• Time of Payment of Wage
• Deductions which may be made from Wages.
• Maximum Amount of Deduction
 List of Cases
• Indian Statistical Institute v. State of W.B.
(1994) 4 SCC 744
• Arvind Mills Ltd v. K.R. Gadgil AIR 1941 Bom.26
• Payment of Wages Inspector v. Surajmal
Mehta, Director AIR 1969 SC 590
• P.C. Agarwala v. Payment of Wages, Inspector
(2005) 8 SCC 104
State of Punjab v. Rafiq Masih 2015 (4) SCC 334
Coimbtore Periyar Dstt. DPTMS v. National
Textile Corpn. Ltd. 2011 SCC Mad 2573
The Payment Of Wages Act 1936 was come in to
the force on 23rd April 1936.This Act was passed to
regulate the payment of wages for certain classes
of persons employed in industry. It ensures
payment of wages in a particular form and at
regular intervals without unauthorized deductions.
The Act extends to whole of India sec. 1(2). It was
extended to Jammu and Kashmir by the Central
Labour Law (Extension to Jammu and Kashmir) Act
1970.
 Object of the Act
(1) To Regulate the payment of wages to certain
class of employed person.
(2) Regulation completed by the Act is to fold : 1.
The date of payment of wages.
2. The deduction from wages whether fine or
otherwise.
(3) To ensure payment of wages to persons who
covered by the Act certain provisions have been
made in this Act.
 Object of the Act
The Payment of Wages Act regulates the payment of wages to certain
classes of persons employed in industry and its importance cannot be
under-estimated. The Act guarantees payment of wages on time and
without any deductions except those authorised under the Act. The Act
provides for the responsibility for payment of wages, fixation of wage
period, time and mode of payment of wages, permissible deduction as also
casts upon the employer a duty to seek the approval of the Government for
the acts and permission for which fines may be imposed by him and also
sealing of the fines, and also for a machinery to hear and decide
complaints regarding the deduction from wages or in delay in payment of
wages, penalty for malicious and vexatious claims. The Act does not apply
to persons whose wage is Rs. 24,000/- or more per month. The Act also
provides to the effect that a worker cannot contract out of any right
conferred upon him under the Act.
In Arvind Mills Ltd v. K.R. Gadgil AIR 1941 Bom observed
that “the general purpose of the act is to provide that
employed persons shall be paid their wages in a particular
form and at regular intervals without any unauthorized
deductions.”
R.V. Shah v. V.R. Savarkar, 1952 it was observed about the
object of the act that the payment of wages act was
enacted for the purpose of safeguarding the wages of
employees under certain conditions laid down under that
act and payment to them without unauthorized
deductions.
The payment of wages Act was passed to regulate the
payment of wages to certain class of persons
employed in industry. It applicable to factory, railway,
industrial and other establishment etc.
Every employer is responsible for payment of wages
and payment must be paid to employed person not
exceed than one month .
Wages paid to the workers in terms of current coin
and currency notes or cheque or credited to
employees bank account.
 Applicability
According to Sec. 1(4) of the Act, it applies to in the first instance
to the payment of wages to :
1. Person employed in Factory.
2. Person employed upon any railway by a Railway
Administration or either directly or through sub- contractor .
3. Person employed in industrial and other establishment
specified in sub – clauses (a) to (g) of clause (ii) of sec 2
4. The State Govt. may after giving 3 months notice by
notification in the Official Gazette , extends the provision of
this Act or any of them to payment of wages to any class of
persons employed.