Post on 07-Apr-2018
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INTRODUCTIONINTRODUCTION
y In early days of industrial revolution, workers
were exploited with exorbitant delays in
payment of wages , arbitrary deductions and
other unfair practices on the part ofemployers. Delay in the payment of wages,
heavy fines for small omission and
commission. Were quite common.
Irregularities committed by employers were
brought into the notice of ROYAL
COMMISSION OF LABOUR IN INDIA.
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OBJECT OF THE ACTOBJECT OF THE ACT
y The main object of the Act is to ensure toworkers, payment of their earned wages ondue date without unauthorised deduction.
y
In order to ensure timely payment of wages,the Act regulations the manner of paymentof wages at regular intervals.
y It lays down permissible deductions to
protect the employed persons againstarbitrary or unauthorised deductions beingmade from their wages.
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Scope and coverageScope and coverage
y The act applies to the whole of India. The
act applies to the payment of wages to
person employed in any factory and to
prsons employed upon any railway by arailway administration.
y The act doesnt apply to person whose
wages exceed rs 1600 per month. Thislimit was raised from rs 1000 by
amending
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DEFINITIONSDEFINITIONS
y Employed person: employed person
includes the legal representative of a
deceased employed peson.
y Employer: Employer includes the legal
representative of deceased employer.
y Industrial establishment: tram-way service
or motor transport engaged in carryingpassengers and goods or both by road for
hire or reward.
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y Inland vessel mechanically propelled.
y Mine, quarry or a jetty
y
Plantationy Establishment in which any work relating
to the constructions, development or
maintenance of building, roads, bridges or
canals or relating to transmission, ordistribution of electricity, or any other
form of power is being carried on.
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y Wages: wages means all remunerations
expressed in terms of money or capital of
being expressed which would, if the terms
of employment, expressed or implied arefulfilled, be payable to persons employed
in his employment or of work done in
such employment.
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The expression wages does notThe expression wages does not
include.include.
y The bonus declared voluntarily on the basisof profits, and bonus which does not frompart of remuneration payable under the
terms of employment or which is notpayable under any award or settlementbetween the parties or order of a court.
y The value of any house accommodation, of
the supply of water, light, medical attendance,or other amenity or any service excludedfrom the computation of wages by a generalor specific order of the state government.
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y Any contribution paid by the employer to
any pension or provided fund, and the
interest accrued thereon;
y Any travelling allowance or the value of
any travelling concession;
y Any sum paid to the employed person to
defray special expenses entailed on himby the nature of his employment.
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y Any gratuity payable on the termination ofemployment.
y Whether house rent are wages depends on
the terms of the contract. It is so, if itspayment is compulsory, otherwise it is not.
y The term wages means wages earned andnot potential wages.
y No other meaning can be assigned to theterm wages than is mentioned in thedefinitions.
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Responsibility for payment of wagesResponsibility for payment of wages
y Every employer shall be responsible towages to persons employed by him. But inthe case of persons employed in factories,industrial establishment and railways, the
following persons shall be responsible forpayment of wages.
y 1 In factories, the persons named asmanager.
y 2 In industrial establishment, the person whois responsible to the employer for thesupervision and control of the industrialestablishment.
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Rules for payment of wagesRules for payment of wages
y Fixation of wage-period: every person
responsible for the payment of wages
under sec 3 shall fix periods, known as
wages period in respect in respect ofwhich such wages shal be payable. A wage
period shall not exceed one month.
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Time of payment of wagesTime of payment of wages
If the number of persons employed in a
factory, an industrial establishment or
railways, including daily rated workers, is
less than 1000, wages must be paid beforethe expiry of the seventh day after the
last day of the wage period.
In other cases, wages must be paid beforethe expiry of the expiry of the tenth day
after the expiry of the wage period.
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y Where the employment of any person isterminated by or on behalf of the employer,the wages earned by him shall be paid before
the expiry of the second working day fromthe day on which employment is termineted.
y If the employment is terminated due to theclosure of establishment for any reason
other than a weekly or other recognisedholiday, wages will be paid before the expiryof second working day from the day onwhich employment is being terminated.
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y The state government may, by a general
or special order, exempt the person
responsible for the payment of wages
from the operations of the aboveprovisions in certain cases.
y All payment of wages shall be made on a
working day.