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The Payment of Wages Act 1936

THE PAYMENT OF WAGES ACT 1936

INTRODUCTION

  • With the growth of industries in India, problems relating to payment of wages to persons employed in industry took an ugly turn. The industrial units were riot making payment of wages to their workers at regular intervals and wages were not uniform. The industrial workers were forced to raise their heads against their exploitation.

ACT 4 OF 1936

  • The Payment of Wages Bill, 1935 having been passed by the Legislative Assembly received its assent on 23rd April, 1936. It came on the Statute Book as THE PAYMENT OF WAGES ACT, 1936 (4 of 1936).

LIST OF AMENDING ACTS, ORDINANCE AND ADAPTATION ORDERS

  1. The Government of India (Adaptation of Indian Laws) Order, 1937.
  2. The Repealing and Amending Act, 1937 (20 of 1937).
  3. The Payment of Wages (Amendment) Act, 1937 (22 of 1937).
  4. The Payment of Wages (Amendment) Ordinance, 1940 (3 of 1940).
  5. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.
  6. The Adaptation of Laws Order, 1950.
  7. The Part B States (Laws) Act, 1951 (3 of 1951).
  8. The Payment of Wages (Amendment) Act, 1957 (68 of 1957).
  9. The Payment of Wages (Amendment) Act, 1964 (53 of 1964).
  10. The Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51 of 1970).
  11. The Repealing and Amending Act, 1974 (56 of 1974).
  12. The Payment of Wages (Amendment) Act, 1976 (29 of 1976).
  13. The Payment of Wages (Amendment) Act, 1977 (19 of 1977).
  14. The Payment of Wages (Amendment) Act, 1982 (38 of 1982).
  15. The Payment of Wages (Amendment) Act, 2005 (41 of 2005).

THE PAYMENT OF WAGES ACT, 19361

  • An Act to regulate the payment of wages of certain classes of 2[employed persons], whereas it is expedient to regulate the payment of wages to certain classes of 2[employed persons].

It is hereby enacted as follows:—

  1. Short title, extent, commencement and application
  2. Definitions-In this Act, unless there is anything repugnant in the subject or context
  3. Responsibility for payment of wages
  4. Fixation of wage-periods
  5. Time of payment of wages
  6. Wages to be paid in current coin or currency notes. All wages shall be paid in current coin or currency notes or in both.
  7. Deductions which may be made from wage

Case Law

The requirement of making a deposit at the time of filing of an appeal does not destroy the remedy of the appeal; Nagar Palika v. Prescribed Authority, (1992) 64 FLR 1005 (All).

  1. Fines
  2. Deductions for absence from duty
  3. Deductions for damage or loss
  4. Deductions for services rendered
  5. Deductions for recovery of advances
    • Deductions for recovery of loans
  6. Deductions for payments to co-operative societies and insurance schemes
  7. Maintenance of registers and records
  8. Inspectors
    • Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims

Case Law

  • The Authority has no jurisdiction to entertain and decide claims involving complicated questions of law and facts. Continuance of such proceeding will amount to be an abuse of the process of law; Abdul Waheed v. Authority, Payment of Wages Act, (1995) II LLJ 1079.
    • Single application in respect of claims from unpaid group
    • Appeal

Case Law

  • The appeal and deposit and information of deposit to court have to be within limitation of 30 days from the date of receipt of the certified copy of the impugned order; Murudhar Kshethriya Gramin Bank v. Bhagwan Ram, (1995) II LLJ 1076.
    1. Conditional attachment of property of employer or other person responsible for payment of wages
    2. Powers of authorities appointed under section 15

Case Law

  1. Power to recover from employer in certain cases
  2. Penalty for offences under the Act
  3. Procedure in trial of offences

Case Law

  1. Bar of suits
    • Protection of action taken in good faith
  2. Contracting out
  3. Delegation of powers
  4. Display by notice of abstracts of the Act
    • Payment of undisbursed wages in cases of death of employed person
  5. Rule-making power

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