Explain the objective scope and coverage of the payment of Wages Act 1936. State the procedure laid down under the act for imposing fines.

MS 28 Assignment Solution | Labour Laws | Objective Scope and Coverage of the Payment of Wages Act 1936

The Payment of Wages Act, 1936 was enacted with a view to ensuring that wages payable to employed persons covered by the Act were disbursed by the employers within the prescribed time limit and that no deductions other than those authorized by law were made by them. The last amendment was made in 1982 and several provisions of the Act have become obsolete over the years.

Many proposals have been received by the Government for amending various provisions which are creating practical difficulties in the enforcement of this Act. In order to bring this law in uniformity with other labor laws and also to make it more effective and practicable, it is proposed to make, inter alia, the following changes:

(1) Enhancing the wage ceiling of Rs. 1600 per month to Rs. 6500 per month: The then existing ceiling of Rs. 1000 per month was last revised to Rs, 1600 per month in 1982. Since then a large number of employed persons have gone out of the purview of the Act due to successive rises in wages levels resulting from rising in the cost of living. Thus, with a view to covering more employed persons, it is proposed to enhance the wage ceiling from Rs. 1600 per month to Rs. 6500 per month

(ii) To substitute the expressions “the Central Government” or “a State Government with the expression “appropriate Government”: In Parliamentary enactments relating to labor, other than the Payment of Wages Act, 1936,  the enforcing authorities are either the Central Government or the State Governments depending upon the nature of the industry.

However, for implementing the Payment of Wages Act, 1936, matters are referred to the State Governments and quite often action required to be taken by them is delayed. In order that this law is in conformity with the other labor laws, it is proposed to introduce the concept of “appropriate Government”.

iii) Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redressal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same.

In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8, and 15 of the Act which respectively deals with responsibility for payment of wages, deductions from wages fines, and claims in certain cases.

(iv)Strengthening compensation and penal provisions of the Act: The penal provisions of the Act have become almost insignificant due to the passage of time as well as a decrease in money value since these provisions were last amended in 1982.

It is, therefore, proposed to make the penal provisions more stringent by enhancing the quantum of penalties by amending section 20 of the Act. Responsibilities for payment of ages are mentioned in Section 3 of the Payment of Wages Act, 1936. Every employer is liable for the payment of all wages to every one of the workers that he utilizes or employs for his work. In some other cases, if the employer names an individual, or on the off chance that there is an individual capable of the business or is designated, at that point, such an individual is liable for the payment of wages.

Notwithstanding anything contained in sub-section (1), the business is capable to make the payment of all wages which the Act expects him to make. Actually, if the temporary worker or the individual that the employer assigns to make the payment neglects to do as such, at that point the duty lies with the employer. Each employer will be answerable for the payment to people utilized by him of all wages required to be paid.

• On account of the industrial facility, the administrator of that manufacturing plant will be obligated to pay the wages to workers utilized by him.

• On account of mechanical or different foundations, the duty of supervision will be subject to the payment of wages to workers utilized or employed by him.

• On account of railroads, an individual named by the rail line organization for determining territory will be at risk for the payment of wages to the workers.

• On account of a contractual worker, an individual assigned by such a temporary worker who is straightforwardly under his charge will be at risk for the payment of the wage to the representatives.

On the off chance that he neglects to pay wages to representatives, individuals who employed the workers will be at risk for the payment of wages.

Fixation of wage period

Each individual who is liable for the payment of wages under section 3 will fix periods in regard to which such wages will be payable. No wage period will surpass one month. That implies pay can be paid day by day, week by week, fortnightly (for at regular intervals), and month to month as it were. Payment of wage period for payment of wages to representatives by manager ought not to surpass 30 days, for example, one month. In any case, compensation can’t be paid quarterly, half-yearly, or once a year Time of payment of wages Each individual employed upon or in:

Any railway, production line, or modern or different foundations upon or in which the complete number of employed people is short of what one thousand, must get his wages before the expiry of the seventh day from the most recent day of the pay time frame for which the wages are payable.  Some other railway, industrial or mechanical, or different foundations, must get their wage before the expiry of the tenth day from the most recent day of the compensation time frame for which the wages are payable.

If the employer ends the work of an individual, at that point he should guarantee that the fired employee gets his wages before the expiry of the second working day from the date of the end of employment The Appropriate Government can exclude such a degree and furthermore subject to such conditions in the request the individual liable for the payment of wages to utilize or employ people.

The business or the individual answerable for paying wages must guarantee that the wages are paid on a working day. Wages to be paid in current coins or currency notes The employer or the individual answerable for making the payment of wages must pay in money coins or cash notes or in both.

Further, he can’t pay in kind. Additionally, the employer can pay the wages by means of a cheque or a direct deposit to the bank of the representative subsequent after taking a composed approval from him. Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishments, the employer of which shall pay to every worker employed in such industrial or other establishments, the wages only by giving a cheque or by crediting the payment in his bank account.

Deduction which may be made from wages At the time of payment of the salary to personnel, the business enterprises should make deductions in step with this act simplest. The employer should no longer make deductions as he likes. Every quantity paid by the employee to his enterprise is referred to as deductions.

The following are not referred to as the deduction:

• Stoppage of the increment of worker

• Stoppage of the promotion of the worker

• Stoppage of the inducement lack of overall performance by using employee

• The demotion of the worker

• Suspension of the worker

Wrapped Up

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