Payment of Wages Act 1936 – Objective, Provision, Importance

What is Payment of Wages?

The Payment of Wages Act of 1936 governs how wages are paid to employees (direct and indirect). The statute is intended to protect employees from unlawful employer deductions and/or unjustifiable salary delays. Define laws around wage period, time, and mode of payment of wages to particular classes of workers working in the industry without any unjust deductions other than those specified in the Act and also, Regulates the rights of the workers covered by this Act.

Objectives of Payment of Wages Act 1936

The Payment of Wages Act, of 1936 is an Act of the Parliament of India that regulates the payment of wages to certain classes of employed persons. The Act was enacted in 1936 and has been amended several times since then. The objectives of the Payment of Wages Act are to:

• Ensure that employees are paid their wages on time and in full.
• Protect employees from unauthorized deductions from their wages.
• Promote industrial peace and harmony.
• Provide for penalties for employers who fail to comply with the Act.

Importance of Payment of Wages Act 1936

The Payment of Wages Act 1936 is an important piece of legislation that ensures that employees are paid their wages on time and in full. The Act also protects employees from unauthorized deductions from their wages. The Payment of Wages Act is an important tool for protecting the rights of India’s working class. Here are some of the key importance of the Payment of Wages Act 1936:

• Ensures that employees are paid their wages on time and in full. This is important for the financial security of employees and their families.
• Protects employees from unauthorized deductions from their wages. This prevents employers from taking advantage of employees and withholding their wages.
• Promotes industrial peace and harmony. When employees are treated fairly and paid their wages on time, they are less likely to go on strike or engage in other forms of industrial action.
• Provides for penalties for employers who fail to comply with the Act. This helps to ensure that employers are aware of their obligations under the Act and that they are held accountable for non-compliance.

The Payment of Wages Act is an important piece of legislation that has helped to improve the lives of millions of Indian workers. The Act has helped to ensure that employees are paid their wages on time and in full, and it has protected them from unauthorized deductions. The Act has also helped to improve the financial security of employees and promote industrial peace and harmony.

Responsibility For Payment of Wages Act 1936

The responsibility for payment of wages under the Payment of Wages Act 1936 lies with the employer. The employer is defined as the person who pays or is responsible to pay any person employed by him any wages.

• In case of a factory, the person who is named as the manager under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 is responsible for the payment of wages.
• In case of an industrial or other establishment, the person who is responsible to the employer for the supervision and control of the industrial or other establishment is responsible for the payment of wages.
• In case of a railway, the person who is nominated by the railway administration for the local area concerned is responsible for the payment of wages.
• In any other case, the employer may designate any person to be responsible for the payment of wages. The person so designated shall be responsible for the payment of wages in the same manner as the employer would be responsible.

The employer is required to pay the wages of every person employed to him before the expiry of the seventh day from the end of the wage period. The wage period is the period for which wages are payable to an employee. The wage period may be fixed by the employer or by the agreement between the employer and the employee.

The employer is required to pay the wages in current coin or currency notes, by cheque, or by crediting the wages in the bank account of the employee. The employer is not allowed to pay wages in kind. The employer is also not allowed to make any unauthorized deductions from the wages of an employee. The only deductions that are allowed are the following:

1. Fines imposed in accordance with the provisions of the Act;
2. Deductions for absence from duty, subject to the conditions specified in the Act;
3. Deductions for damage or loss caused by the employee’s negligence or willful act;
4. Deductions for deductions authorized by the Central Government or a State Government.

If the employer fails to pay the wages of an employee on time, or if the employer makes unauthorized deductions from the wages of an employee, the employee may file a complaint with the Labour Commissioner. The Labour Commissioner may order the employer to pay the wages owed or to stop the unauthorized deductions. The employer may also be fined for non-compliance.

Provisions of Payment of Wages Act 1936

The Act specifies the time within which wages must be paid, the form in which wages must be paid, and the deductions that may be made from wages. The Act also provides for penalties for non-compliance. The main provisions of the Payment of Wages Act 1936 are as follows:

• Time of Payment of Wages: The wages of every person employed must be paid before the expiry of the seventh day from the end of the wage period.
• Form of Payment of Wages: Wages must be paid in current coin or currency notes, by cheque, or by crediting the wages in the bank account of the employee.
• Deductions from Payment of Wages: Only the following deductions may be made from wages:

• Fines imposed in accordance with the provisions of the Act;
• Deductions for absence from duty, subject to the conditions specified in the Act;
• Deductions for damage or loss caused by the employee’s negligence or willful act;
• Deductions for deductions authorized by the Central Government or a State Government.

• Penalties Payment of Wages: Any person who fails to comply with the provisions of the Act is liable to a fine of up to Rs. 1,000.
  The Payment of Wages Act 1936 is an important piece of legislation that ensures that employees are paid their wages on time and in full. The Act also protects employees from unauthorized deductions from their wages. The Act has been amended several times since it was first enacted, and it continues to be an important tool for protecting the rights of India’s working class.

Here are some of the key benefits of the Payment of Wages Act 1936:

• It ensures that employees are paid their wages on time and in full.
• It protects employees from unauthorized deductions from their wages.
• It provides penalties for employers who fail to comply with the Act.
• It helps to improve the financial security of employees.
• It promotes industrial peace and harmony.

The Payment of Wages Act 1936 is an important piece of legislation that has helped to improve the lives of millions of Indian workers. The Act has helped to ensure that employees are paid their wages on time and in full, and it has protected them from unauthorized deductions. The Act has also helped to improve the financial security of employees and promote industrial peace and harmony.

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