Payment of Wage Legislation

Click to edit Master subtitleBy Shweta Bambuwala style

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Objectives

Payment in kind When paid in cash payment in illegal tender Arbitrary Deductions Irregular Payment Non Payment

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Payment of Wages Act 1936

It puts a legal obligation to fix a wage period and to make payment of wages Lay downs authorized deductions and employers are prohibited from making Arbitrary deductions

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Scope

It does not apply to wages which average Rs 6500 a month or more over It Applies to,
Persons employed in any factory Person employed or fulfilling contract with railway administration Persons employed in any of the following industrial establishment, Tramway service

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Wages

All remuneration expressed in terms of money or capable of being so expressed which would, if the terms of employment express or implied were fullfilled be payable to persons employed and includes:
Award, Settlement between parties or order of a court Remuneration for overtime work , holidays or leave period
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a)

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Any sum by reason of the termination of employment

Responsibility for wage payment Fixation of wage period

Not exceeding 1 month

Time of payment of wages

Less than 1000 Employees, payment before the expiry of the seventh day after last day of wage period More than 1000 Employees, Payment before the expiry of the tenth day after the last day of the wage period.
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Deductions
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Fines Absence from duty Damage or loss House Accommodations and services rendered Recovery of advances or for adjustment of overpayment for wages Recovery of loan Income tax By order of court
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to or for repayment of advances

Total amount of deductions

not to exceed 75 percentage of wages- co operative societies 50 percentage- other cases

Appeal Registers, Records and Notices Inspectors

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Penalties

Non payment of wages- Rs.200 up to Rs.1000. Failure to maintain records- Rs.200 up to Rs.1000 Willfully obstructing an inspector- Rs.200 up to Rs.1000 Contravention of provisions related to wages- max. Rs 500. 6/16/12

Minimum Wages Act 1948

First legislation dealing with the fixation of minimum rates of wages Objectives To prevent exploitation of labor and payment of unduly low wages Regulating the quantum of wages
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Scope

Empowers state and central governments to fix minimum wages in respect of workers employed in the industries listed in schedule of the act which contains two parts I and II

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Fixation of minimum rates

Wages for time work Wages for piece work Remuneration as guaranteed time rate Minimum rate of wages for overtime work Different wage rate for different scheduled employments
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Any rate of wage fixed by government may consist of. A basic rate and cost of living allowances A basic rate and cost of living allowances and the cash equivalent of the concession in respect of supplies of essential commodities An all inclusive rate

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Procedure for fixing minimum Rates

Two distinct procedures Committees, sub committees Recommendations Notification in official gazette Proposal by government on minimum wages Two months
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Mode of Payment Deductions from wages Hours of work, overtime and weekly rest and others

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Penalties

Payment less than minimum rates fixed or contravention of any rule or order made is punishable with imprisonment for a term up to 6 months and fine Rs 500 Contravention of any provision fine may extend to Rs 500. Any claim which is malicious- fine not

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