Labour Commissioner 
THE PAYMENT OF WAGES ACT, 1936
(4 OF 1936)3
[23rd April, 1936]
An Act to regulate the payment of wages of certain classes of 4[employed persons]
WHEREAS it is expedient to regulate the payment of wages to certain classes of persons employed in industry. it is hereby enacted as follows:-
1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION-
(1) This Act may be called the Payment of Wages Act, 1936.
5[(2) It extends to the whole of India 6[***]].
(3) It shall come into force on such date7 as the Central Government may by notification in the Official Gazette, appoint.
(4) It applies in the first instance to the payment of wages to persons employed in any 8[factory, to persons] employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, 9[and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of Section 2.]
(5) The State Government may, after giving three months' notice of its intention of so doing, by notification in the Official Gazette, extend the provisions of 10[this Act] or any of them to the payment of wages to any class of persons employed in 11[any establishment or class of establishments specified by the Central Government or a State Government under sub-clause (h) of clause (ii) of Section 2:]
12[provided that in relation to any such establishment owned by the Central Government no such notification shall be issued except with the concurrence of that Government.]
3. For Statement of Objects and Reasons and Report of Select Committee, see introduction.
4. Subs. by Act 38 of 1982, s. 2 for "persons employed in industry" (w.e.f.15-10-1982).
5. Subs. by the Adaptation of Laws Order, 1950, for sub-section (2).
6. The words "except the State of Jammu and Kashmir" were substituted by Act 3 of 1951, s. 3 and Sch. for the words "except Part B States" which were subsequently omitted by Act 51 of 1970,s. 2(2) and Schedule.
7. 28th March, 1937, see Gazette of India, 1937, Part I, page 626.
8. Subs. by Act 38 of 1982, s. 3, for "factory and to persons" (w.e.f. 15-10.1982).
9. Ins. by s. 3 ibid. (w.e.f. 15-10-1982).
10. Subs. by Act 68 of 1957, s.2, for "the Act" (w.e.f. 1-4-1958).
11. Subs. by Act 38 of 1982, s. 3 (w.e.f. 15-10-1982).
12. Subs. by ibid, for the proviso.
(6) Nothing in this Act shall apply to wages Payable in respect of a wage-period, over such wage-period, average 13[14[one thousand six hundred rupees] a month or more.
2. DEFINITIONS.
In this Act, unless there is anything repugnant in the subject or context,-
15[(i) "employed person" includes the legal representative of a deceased person ;
(ia) "employer" includes the legal representative of a deceased employer:
(ib) "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948) and includes any place to which the provisions of that Act have been applied under sub-section (1) of section 85 thereof; ]
(ii) 16["industrial or other establishment" means] any-
17[(a) tramway service, or motor transport service engaged in carrying passenger or goods or both by road for hire or reward;
(aa) air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India;]
(b) dock, wharf or jetty;
18[(C) inland vessel, mechanically propelled:]
(d) mine, quarry on oil-field;
(e) plantation;
(f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale;
19[(g) establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operation connected with navigation, irrigation, development or maintenance of buildings roads, bridges or mission and distribution of electricity or any other form of power is being carried on]
13. Subs. by Act 38 of 1982, s. 3 (w.e.f. 15-10-1982).
14. Subs. by Act 29 of 1976, s. 2, for "four hundred rupees" (w.e.f. 12-11-1975).
15. Subs. by Act 53 of 1964, s. 3, for cl. (i) (w.e.f. 1-2-1965).
16. Subs. by Act 38 of 1982, s. 4 for the words "industrial establishment" (w.e.f. 15-10-1982).
17. Subs. by Act 53 of 1964, s. 3, for sub-clause (a) (w.e.f. 1-2-1965).
18. Subs. by Act 68 of 1957, s. 3, for sub-clause (c) (w.e.f. 1-4-1958).
19. Ins. by Act s. 3, ibid. (w.e.f. 1-4-1958).
20[(h) any other establishment or class of establishment which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette;]
21[(iia) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);]
22[(iii) "plantation" has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);]
(iv) "prescribed" means prescribed by rules made under this Act;
(v) "railway administration" has the meaning assigned to it in clause (6) of section 3 of the Indian Railways Act, 1890 (9 of 1890); and
23[(vi) "wages" means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes-
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force,
20. Ins. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).
21. Ins. by Act, 53 of 1964, s. 3 (w.e.f. 1-2-1965).
22. Subs. by ibid, s. 3, for cl. (iii) (w.e.f. 1-2-1965).
23. Subs. by Act 68 of 1957, s.3, for cl. (vi) (w.e.f. 1-4-1958).
the person so named, the person responsible to the employer, or the person so nominated, as the case may be 26[shall also be responsible] for such payment
4. FIXATION OF WAGE-PERIODS-
(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month.
5. TIME OF PAYMENT OF WAGES-
(1) The wages of every person employed upon or in-
(a) any railway, factory or 27[industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before expiry of the seventh day,
(b) any other railway, factory or 27[industrial or other establishment], shall be paid before the expiry of the tenth day,
after the last day of the wage-period in respect of which the wages are payable:
28[Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.]
(2) Where the employment of any person is terminated by or on behalf of the employer, the wages, earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated:
29[provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognized holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.]
(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons
26. Subs. by Act 53 of 1964, s. 4, for "shall be responsible" (w.e.f. 1-2-1965).
27. Subs. by Act 38 of 1982, s. 6, for "industrial establishment" (w.e.f. 15-10-1965).
28. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
29. ibid.
employed upon any railway (otherwise than in a factory) 30[or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government from the operation of this section in respect of the wages on any such persons or class of such persons:
31[provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.]
(4) 32[Save as otherwise provided in sub-section (2), all payments] of wages shall be made on a working day.
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:
33[provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either be cheque or by crediting the wages in his bank account.]
7. DEDUCTIONS WHICH MAY BE MADE FROM WAGES-
(1) Not-withstanding the provisions of sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890), the wages of an employed person shall be paid to him without deductions of any kind except those authorized by or under this Act.
34[EXPLANATION-I.]-Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.
35[EXPLANATION-II.-Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely:-
(i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar):
(ii) the reduction to a lower post or time scale or to a lower stage in a time scale: or
(iii) suspension,
shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by the State Government by notification in the Official Gazette.]
30. Ins. by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
31. Ins. by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
32. Subs. by s. 5, ibid., for "All payments" (w.e.f. 1-2-1965).
33. Ins. by Act 29 of 1976, s. 3 (w.e.f. 12-11-1975).
34. Explanation re-numbered as Explanation 1 by Act 68 of 1957, s. 5 (w.e.f. 1-4-1958).
35. Inserted by s. 5, ibid, (w.e.f. 1-4-1958).
(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:-
(a) fines;
(b) deductions for absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;
36[(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidizing house-accommodation which may be specified in this behalf by the State Government by notification in the Official Gazette;]
(e) deductions for such amenities and services supplied by the employer as the 37[***] State Government 38[or any officer specified by it in this behalf] may, by general or special order, authorize;
EXPLANATION-The word "services" in 39[this clause] does not include the supply of tools and raw materials required for the purposes of employment;
40[(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect there-of, or for adjustment of over-payments of wages;
(ff) deductions for recovery of loan made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof.
(fff) deductions for recovery of loans granted for house-building or other purposes approved by the State Government and the interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person:
36. Subs. by Act 68 of 1957, s. 5 for cl. (d) (w.e.f. 1-4-1958).
37. The words "Governor-General in Council or" omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.
38. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
39. Subs. by Act 56 of 1974, s. 3 and Sch. II, for "this sub-clause".
40. Subs. by Act 53 of 1964, s. 6, for cl. (f) (w.e.f. 1-2-1965).
(h) deductions required to be made by order of a Court or other authority competent to make such order;
(i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognized provident fund as defined in section 58A of the Indian income-tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the State Government, during the continuance of such approval; 41[***]
42[(i) deductions for payments to co-operative societies approved by the State Government 43[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office; 44[and]
45[(k) deductions, made with the written authorization of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government.]]
46[(kk) deductions made, with the written authorization of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union under the Trade Union Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it in this behalf, during the continuance of such approval;
(kkk) deductions made, with the written authorization of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926);]
41. The word "and" omitted by Ordinance 3 of 1940, s. 2.
42. During the continuance in force of the Defence of India Act, 1971 (42 of 1971), s. 7 shall have effect as if after cl. (i) of sub-section (2) there of the following clause had been inserted:-
"(ii) deductions made with the written authorization of-
(i) The employed person; or
(ii) the president or secretary of the registered trade union of which the employed person is a member on such condition as may be prescribed,
for contribution to the National Defence Fund or to any Defence Savings Scheme approved by the State government;".
43. Ins. by Act 53 of 1964, s. 6 (w.e.f, 1-2-1965).
44. Added by Ordinance 3 of 1940, section 2.
45. Subs. by Act 68 of 1957, s. 5, for cl. (k) (w.e.f, 1-4-1958).
46. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).
47[(l) deductions, for payment of insurance premia on Fidelity Guarantee Bonds;
(m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;
(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharf age and carnage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise;
(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his neglect or default;]
48[(p) deductions, made with the written authorization of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;]
49[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]
50[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed-
(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section (2), seventy-five per cent of such wages, and
(ii) in any other case, fifty percent of such wages;
provided that where the total deductions authorized under sub-section (2) exceed seventy five percent, or as the case may be, fifty percent, of the wages, the excess may be recovered in such manner as may be prescribed.
(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than the Indian Railways Act, 1890 (9 of 1890).]
47. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
48. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
49. Ins. by Act 19 of 1977, s. 2.
50. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
COMMENTS
An employer can deduct the wages under section 7(2) (b) of the Act for absence from duty. Absence from duty by an employee must be on his own volition and it can’t cover his absence when he is forced by circumstances created by the employer from carrying out his duty. In the case in hand as the absence of the employees was not voluntary in as much as, they were not allowed to resume their work without signing the guarantee bound no deduction can be made under the Act. [French Motor Car Co. Ltd. Workers Union v. French Motor Car Co. Ltd; LLR 1990 page 366]. If the workman did not work, although the work was offered to him, he is not entitled to wages. [Modi Industries v. State of U.P., (1992) 64 FLR 471 (All.)] If the absence from duty is due to coercion and the workman is not a consenting party, then the management has no power to deduct wages. (Kothari (Madras) Ltd. v. Second Addl. District Judge-cum. Appellate Authority & Ors; (1990) 76 FJR 209(A.P.)]. It is too well-settled that "go-slow" is a serious misconduct being a covert and a more damaging breach of the contract of employment. (Bank of India v. T.S. Kelawala & Ors; 1990 LLR 313 (S.C.)].
The workman can’t be denied the wages when he reports himself on duty but the work is not taken from him by the employer. [J.D.A. v. Labour Centre & Ors; (1990) 60 F.L.R. 81 (Raj.)]. Compensation up to 10 times can’t be granted in case of back wages awarded by the Industrial Tribunal. [Municipal Council & Ors. v. Khubilal, (1992) 64 F.L.R. 752 (Raj.)]. The Prescribed Authority has been conferred power to entertain the application even beyond the period of 12 months. (Rahat Hussain Khan v. 3rd Addl. District Judge & Ors; (1992) 64F.L.R. 302 (All.)]. Appeal is not made to a person designate but to a court. Revision lies against the appellate order to the High Court. [Bharatpur Central Co-op. Bank Ltd. v. Rattan Singh & Ors; (1990) II C.L.R. 516 (Raj.)]. The requirement of making deposit at the time of filing of appeal does not destroy the remedy of the appeal. [Nagar Palika v. Prescribed Authority & Ors; (1992) 64 F.L.R. 1005 (All.)].
8. FINES-
(1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under sub-section (2).
(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of person employed upon a railway (otherwise than in a factory), at the prescribed place or places.
(3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or other-wise, than in accordance with such procedure as may be prescribed for the imposition of fines.
(4) The total amount of fine which may be imposed in any one wage
period on any employed person shall not exceed an amount equal to 51[three per cent] of the wages payable to him in respect of that wage-period.
(5) No fine shall be imposed on any employed person who is under the age of fifteen years.
(6) No fine imposed on any employed person shall be recovered from him by installments or after the expiry of sixty days from the day on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
(8) All fines and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed; and all such realizations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
Explanation.-When the persons employed upon or in any railway, factory or 52[industrial or other establishment] are part only of a staff employed under the same management, all such realizations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.
9. DEDUCTIONS FOR ABSENCE FROM DUTY-
(1) Deductions may be made under clause (b) of sub-section (2) of section 7 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.
(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made a large proportion than the period for which he was absent bears to the total period, within such wage-period, during which by the terms of his employment, he was required to work:
Provided that, subject to any rules made in this behalf by the State Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.
51. Subs. by Act 38 of 1982, s. 8 for "half an anna in the rupee" (w.e.f. 15-10-1982).
52. Subs. by Act 38 of 1982, s. 8, for the words "industrial establishment" (w.e.f. 15-10-1982).
53[Explanation.-For the purposes of this section, an employed person shall be deemed to be absent from the place where he is required to work if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work.]
COMMENTS
The workman cannot be denied the wages when he reports himself on duty but the work is not taken from him by the employer. [J.D.A. v. Labour Centre & Ors; (1990) 60 F.L.R. 81 (Raj.)] Compensation up to 10 times cannot be granted in case of back wages awarded by the Industrial Tribunal. [Municipal Council & Ors. v. Khubilal, (1992) 64 F .L.R. 752 (Raj.)]. The Prescribed Authority has been conferred power to entertain the application even beyond the period of 12 months. [Rahat Hussain Khan v. 3rd Addl. District Judge & Ors; (1992) 64 F.L.R. 302 (All.)]. Appeal is not made to a persona designate but to a court. Revision lies against the appellate order to the High Court. [Bharatpur Central Co-op. Bank Ltd. v. Rattan Singh & Ors; (1990) II C.L.R. 516 (Raj.)] .The requirement of making deposit at the time of filing of appeal does not destroy the remedy of the appeal. [Nagar Palika v. Prescribed Authority & Ors; (1992) 64 F.L.R. 1005 (All.)].
10. DEDUCTIONS FOR DAMAGE OR LOSS-
54[(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause, against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.]
(2) All such deductions and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
11. DEDUCTIONS FOR SERVICES RENDERED-
A deduction under clause (d) or clause (e) of sub-section (2) of section 7 shall not be made from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and, in the case of deduction under the said clause (e), shall be subject to such conditions as 55[***] the State Government may impose.
53. Added by Act 22 of 1937, s. 2.
54. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-1965).
55. The words "the Governor General in Council or" omitted by the Government of India, (Adaptation Of Indian Laws) Order, 1937.
53[Explanation.-For the purposes of this section, an employed person shall be deemed to be absent from the place where he is required to work if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work.]
COMMENTS
The workman cannot be denied the wages when he reports himself on duty but the work is not taken from him by the employer. [J.D.A. v. Labour Centre & Ors; (1990) 60 F.L.R. 81 (Raj.)] Compensation up to 10 times cannot be granted in case of back wages awarded by the Industrial Tribunal. [Municipal Council & Ors. v. Khubilal, (1992) 64 F .L.R. 752 (Raj.)]. The Prescribed Authority has been conferred power to entertain the application even beyond the period of 12 months. [Rahat Hussain Khan v. 3rd Addl. District Judge & Ors; (1992) 64 F.L.R. 302 (All.)]. Appeal is not made to a persona designate but to a court. Revision lies against the appellate order to the High Court. [Bharatpur Central Co-op. Bank Ltd. v. Rattan Singh & Ors; (1990) II C.L.R. 516 (Raj.)] .The requirement of making deposit at the time of filing of appeal does not destroy the remedy of the appeal. [Nagar Palika v. Prescribed Authority & Ors; (1992) 64 F.L.R. 1005 (All.)].
10. DEDUCTIONS FOR DAMAGE OR LOSS-
54[(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause, against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.]
(2) All such deductions and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
11. DEDUCTIONS FOR SERVICES RENDERED-
A deduction under clause (d) or clause (e) of sub-section (2) of section 7 shall not be made from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and, in the case of deduction under the said clause (e), shall be subject to such conditions as 55[***] the State Government may impose.
53. Added by Act 22 of 1937, s. 2.
54. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-1965).
55. The words "the Governor General in Council or" omitted by the Government of India, (Adaptation Of Indian Laws) Order, 1937.
12. DEDUCTIONS FOR RECOVERY OF ADVANCES-
Deductions under clause (f) of sub-section (2) of section 7 shall be subject to the following conditions, namely:-
(a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for travelling-expenses;
56[(aa) recovery of an advance of money given after employment began shall be subject to such conditions as the State Government may impose;]
(b) recovery of advances of wages not already earned shall be subject to any rules made by the State Government regulating the extent to which such advances may be given and the installments by which they may be recovered.
57[12A. DEDUCTIONS FOR RECOVERY OF LOANS-
Deductions for recovery of loans granted under clause (fff) of sub-section (2) of section 7 shall be subject to any rules made by the State Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.]
13. DEDUCTIONS FOR PAYMENTS TO CO-OPERATIVE SOCIETIES AND INSURANCE SCHEMES.-
Deductions under clause (j) 58[and clause (k)] of sub-section (2) of section 7 shall be subject to such conditions as the State Government may impose.
59[13A. MAINTENANCE OF REGISTERS AND RECORDS-
(1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the Wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed.
(2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of-three years after the date of the last entry made therein.].
14. INSPECTORS-
(1) An Inspector of Factories appointed under 60[sub-section (1) of section 8 of the Factories Act, 1948 (63 of 1948)], shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him.
(2) The State Government may appoint Inspectors for the purposes of this Act in respect of all persons employed upon a railway (otherwise than in a factory) to whom this Act applies.
56. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).
57. Ins. by s. 9, ibid: (w.e.f. 1-2-1965).
58. Ins. by Ordinance 3 of 1940, s. 3.
59. Ins. by Act 53 of 1964 s. 10 (w.e.f. 1-2-1965).
60. Subs, by Act 68 of 1957, s. 6, for "sub-section (1) of section 10 of the Factories Act, 1934" (w.e.f. 1-4-1958)
(3) The State Government may, by notification in the Official Gazette, appoint such other persons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local limits within which and the class of factories and 61[industrial or other establishments] in respect of which they shall exercise their functions.
62[(4) An Inspector may,-
(a) make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act. or rules made there under are being observed;
(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of any railway, factory or 63[industrial or other establishment] at any reasonable time for the purpose of carrying out the object of this Act:
(c) supervise the payment of wages to persons employed upon any railway or in any factory or 64[industrial or other establishment;]
(d) require by a written order the production at such place, as may be prescribed, of any register maintained in pursuance of this Act and take on the spot or otherwise statements of any persons which he may consider necessary for carrying out the purposes of this Act;
(e) seize or take copies of such registers or documents or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by an employer;
(f) exercise such other powers as may be prescribed.
Provided that no person shall be compelled under this sub-section to answer any question or make any statement tending to incriminate himself.
(4A) The provisions of the 65[Code of Criminal Procedure, 1973 (2 of 1974)] shall, so far as maybe, apply to any search or seizure under this sub-section as they apply to any search or seizure made under the authority of a warrant issued under 66[section 94] of the said Code.]
(5) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860).
61. Subs. by Act 38 of 1982, s. 9 for the words "industrial establishment" (w.e.f. 15-10-1982).
62. Subs. by Act 53 of 1964, s. 11, for sub section (4) (w.e.f. 1-2-1965).
63. Subs. by Act 38 of 1982, s. 9 for the words "industrial establishment" (w.e.f. 15-10-1982).
64. Subs. by Act 38 of 1982, s. 9 for the words "industrial establishment" (w.e.f. 15-10-1982).
65. Subs. by Act 38 of 1982, s. 9 (w.e.f. 15-10-1982).
66. Subs. by s. 9, ibid., for "section 98" (w.e.f. 15-10-1982).
67[14A. FACILITIES TO BE AFFORDED TO INSPECTORS-
Every employer shall afford an Inspector all reasonable facilities for making any entry, inspection, supervision, examination or inquiry under this Act.]
15. CLAIMS ARISING OUT OF DEDUCTIONS FROM WAGES OR DELAY IN PAYMENT OF WAGES AND PENALTY FOR MALICIOUS OR VEXATIOUS CLAIMS-
(1) The State Government may, by notification in the Official Gazette, appoint 68[a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State or] any Commission for Workmen's Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, 69[ of persons employed or paid in that area, including all-matters, incidental to such claims:
Provided that where the State Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.]
(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf, or, any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3):
Provided that every such application shall be presented within 70[twelve months] from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made, as the case may be:
Provided further that any application may be admitted after the said period satisfies the authority that he had sufficient cause for not making the application within: such period.
67. Ins. by Act 53 of 1964, (w.e.f. 1-2-1965).
68. Ins. by Act 53 of 1964, 5.12 (w.e.f.1-2-1965).
69. Subs. by s. 13, ibid, for of persons employed or paid in that area" (w.e.f. 1-2-1965).
70. Subs. by Act 53 of 1964, s.13 for "six months" (w.e.f. 1-2-1965).
(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further inquiry (if any) as maybe necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and 71[not exceeding twenty-five rupees in the latter, and even if the amount deducted or the delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees]:
Provided that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to-
(a) a bona fide error or bona fide dispute as to the amount payable to the employed person, or
(b) the occurrence of an emergency, or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment, or
(c) the failure of the employed person to apply for or accept payment.
72[(4) If the authority hearing an application under this section is satisfied-
(a) that the application was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or
(b) that in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be paid to the State Government by the employer or other person responsible for the payment of wages.
(4A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or of the employed person, the decision of the authority on such dispute shall be final.
(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).]
(5) Any amount directed to be paid under this section may be recovered-
(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and
(b) if the authority is a Magistrate, by the Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.
71. Subs. by Act 53 of 1964, s.13, ibid, for "not exceeding ten rupees in the latter" (w.e.f. 1-2-1965).
72. Subs. by, s. 13, ibid, for sub-section (4) (w.e.f. 1-2-1965).
COMMENTS
Where the company was closed without any proper notice to the 14 workmen and the Workmen claimed wages for the period they were kept out of employment, section 25FFF of the Industrial Disputes Act was not applicable and the claim amounted to wages and not compensation and the authority under the Payment of Wages Act had jurisdiction to determine the same. Banjarwala Tea Estate v. District Judge; 1981 Lab IC 370 (42)FLR 165=1981-1 Lab. L.N .371.
Also see: A. V. D' costa v. B.C. Public AIR 1955 SC 412.
The Wages court is not at all competent to determine whether Variable D.A. under the agreement is payable to any workmen this being a subject matter for the court constituted under Industrial Disputes Act. The jurisdiction of the Wages Court is to entertain application only in two items of cases, namely, of deductions and fine not authorized under section 7 to 13 and of delay in payment of wages beyong the wage periods fixed under section 4 and the time of payment lay down in section. The question whether the employees are entitled to get variable D.A. or not cannot be treated as deductions, and as such, the Wages Court has no jurisdiction to entertain this claim.
French Motor Car Co. Ltd. Workers Union v. French Motor Car Co. Ltd; 1990 LLR page 366. Also see
(i) Sailendra Kumar Dutta v. General manager, Gauhati Refinery; 1973 All.L.R. 251.
(ii) Wage Inspector, Ujjain v. Suraj mal Mehta: 1969-1 LLJ 762.
The workman cannot be denied the wages when he reports himself on duty but the work is not taken from him by the employer [J.D.A. v. Labour Court &Ors; (1990) 60 FLR 81(Raj.)] Compensation up to 10 times cannot be granted in case of back wages awarded by the Industrial Tribunal. (Municipal Council & 01.5; v. Khubilal, (1992) 64 FLR 752 (Raj.)]