THE PAYMENT OF WAGES ACT, 1936, PART 2- Rules for payment of wages (Section 3-6)

THE PAYMENT OF WAGES ACT, 1936

RULES OF PAYMENT OF WAGES

SECTION 3: RESPONSIBILITY FOR PAYMENT OF WAGES

• Every employer,
• shall be responsible, for:
  • payment to persons employed by him,
  • of all wages, ,required to be paid under this Act.

BUT: In case-

• Persons employed, otherwise than by a contractor,
• in:
  • factories,
  • industrial establishments, or
  • railways.
• following persons, shall also be responsible for payment of wages.

(a)IN FACTORIES: Person named as the manager

(b)IN INDUSTRIAL OR OTHER ESTABLISHMENT: The person (if any)-

• responsible to the employer,
• for, supervision and control of industrial or other establishment.

(c)UPON RAILWAYS (otherwise than in factories): The person:

• nominated by the railways administration,
• in this behalf,
• for local area concerned.

(d)IN CASE OF A CONTRACTOR: Person designated by such contractor.

(e)IN ANY OTHER CASE: A person-

• designated as responsible,
• for complying with the provision of the Act.

SECTION 4: FIXATION OF WAGE- PERIODS

(1)Every person responsible for payment of wages, under section 3,

• shall fix periods known as wage-periods,
• in respect of which, such wages shall be payable.

(2)Wage-period shall not exceed 1 month.

SECTION 5: TIME OF PAYMENTS OF WAGES

Rules in regard to time of payment of wages.

(1)WAGES TO BE PAID BEFORE 7^th or 10^th DAY:

Wages of every person employed, upon or in any- railway, factory, or industrial or other establishment:

CASE 1: upon or in which less than 1000 persons are employed,

• shall be paid before the expiry of 7^th day of the following ‘wage- period’.

CASE 2: upon or in which number of workers, exceed 1000 mark,

• shall be paid before the expiry of 10^th day of the following ‘wage-period’.

CASE 3: persons employed on dock, wharf or jetty, in a mine,

• balance of wages due on completion of final tonnage account of ship or wagons, loaded or unloaded (as the case may be),
• shall be paid before the expiry of 7^th day of such completion.

(2)WAGES IN CASE OF TERMINATION OF EMPLOYMENT

Where the employment of any person is terminated-

CASE 1: by or on behalf of the employer,

• wages earned by him,
• shall be paid before the expiry on 2^nd working day from the day on which his employment is terminated.

CASE 2: due to closure of the establishment,

• for any reason other than, a weekly or other recognized holiday,
• wages earned by him,
• shall be paid before the expiry on 2^nd day from the day on which his employment is terminated.

(3)EXEMPTION:

• In certain cases,
• the appropriate government, may be by general or special order,
• exempt- the person responsible:
  • for the payment of wages,
  • from the operation of the above provision.

(4)WAGES TO BE PAID ON A WORKING DAY

All payment of wages shall be made on a working day.

SECTION 6: MEDIUM OF PAYMENT OF WAGES

• All wages shall be paid in:
  • current coin,
  • currency notes, or
  • both.
• Payment of wages in kind is not permitted.
• Process of payment of wages is:
  • vary cumbersome, where number of workers is very large, and
  • risky, where;
    • sum involved is large, and
    • factory or industrial establishment is situated at a remote place.
• This section has been added to:
  • obviate mentioned difficulties,
  • save the worker from-
    • carrying cash on the pay day and
    • misspending it.
• Amendment Act, 2005:
  • For paying wages by cheque or depositing wages in bank account, will also inculcate-
    • the banking habit among the workers, and
    • make the process of payment simpler for the employer.

SECOND PART CONSISTS OF RULES FOR PAYMENT OF WAGES (section 3-6), as FIRST PART CONSISTED OF NEED, OBJECTIVE AND DEFINITIONS, and THIRD PART CONSISTS OF DEDUCTIONS FROM WAGES.