The
Payment of Wages Act, 1936 is one of the old enactments dealing with
employer-employee relationship. The limited purpose of the Act is to ensure
prompt and full payment of wages to persons employed in industry.
APPLICABILITY
(a)
Every person employed in any factory, upon a railway or through sub-contractor
in a railway and any person employed in an industrial or other establishment.
(b)
The Appropriate Government may by notification extend the provision to any
class of person employed in any establishment or class of establishments.
ELIGIBILITY
OF EMPLOYEES
Every
person who is employed in any of the above mentioned establishments and who is
drawing less than Rs. 10,000/- per month is eligible under the benefits of
Payment of Wages Act, 1936.
BENEFITS
UNDER THE ACT
The
Act provides for regular and timely payment of wages on or before the expiry of
7th day of every month in cases of establishments employing less than 1,000
employees and on or before the expiry of 10th day of every month in cases of
establishments with greater than 1000 employees. It also provides for
prevention of unauthorised deductions being made from wages and charges of
arbitrary fines.
OTHER
IMPORTANT ISSUES
a.
Wages
are required to be paid in current coin or currency notes or in both but not in
kind. The written authorisation of an employee is necessary for payment by
Cheque/credit to Bank A/c.
b.
The
total deductions cannot exceed 75% of wages for payment to Co-op. societies and
50% in other cases.
c.
Every
employer is required to maintain registers/records in Form No. I, II, III, IV
to be kept for 3 years from last entry.
d.
Every
employer is required to file Annual Return in Form V (In Maharashtra) regarding
persons drawing gross wages below Rs. 1,000/- p.m.
e.
The
nomination facility has been extended to all the eligible employees by filing a
declaration in Form-I to receive the wages standing to his credit at the time
of his death.
PENALTIES
FOR NON-COMPLIANCE
Penalties
prescribed are from Rs. 1,500-7,500. Repeat offences attract 1 to 6 months
imprisonment and fine from Rs. 3,750-22,500. Delayed wage payments attract
penalty of Rs. 750 per day of delay.
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