Tag Archives: mine

THE PAYMENT OF WAGES ACT, 1936

INTRODUCTION

Introduced to ensure payment of wages:

• in – particular form
• at-regular intervals
• without- unauthorized deductions.

NEED

Before the Payment of wages Act, 1936, some evils relevant to payment of wages had got quite prevalent, like:

• withholding wages,
• delays in paying wages, and
• making, unreasonable deductions out of wages.

OBJECTIVES

Case express it better:

Case 1: D’Cesta, A.V., G.I.P. Rly V B.C. Patel [AIR (1955) SC 412]

The Act was passed to:

• regulate payment of wages,
• to certain –classes of persons,
• employed in industry.

Case 2: Milkhi Ram V State of Punjab [AIR (1964) Punj. 513]

Essentially meant and its provisions were enacted,

• to safeguard the interest,
• of industrial employees,
• not getting very high salaries.

Case 3: Arvind Mills Ltd. V Gadgil [AIR (1941) Bom. 26], and

Armugham V Jawahar Mills [AIR (1956) Mad. 79]

Act provides against:

• irregularities in the payment of wages and
• unauthorized deductions therefrom by employers.

DEFINITIONS

SECTION 2(i): APPROPRIATE GOVERNMENT

“appropriate government” means:

• The Central Government, regarding-
• railways,
• air transport services,
• mines, and
• oil fields, and
• the State Government, in all other cases.

SECTION 2(ia): EMPLOYED PERSON

“employed person” includes, legal representatives of deceased employed person.

SECTION 2(ib): EMPLOYER

“employer” includes, legal representatives of deceased employer.

Case: Superintendent and Remembrance of Legal Affairs V B.C. Saha

[(1974) 45 F.J.R. 489]

SITUATION: When there is manager interested with affairs of company.

CONSEQUENCE: Directors of the company cannot be said to be employers.

SECTION 2(ic): FACTORY

“factory”, is the what it is under the Factory Act, 1948, as:

• Section 2(m)- “factory” defined, and
• Section 85(1)- any place, to which the Act is applied.

I. Section 2 (m)”factory” –

Premises (including precincts) where-

• 10 or more workers work or were working on any day preceding 12 months and
• Where a manufacturing process is carried out with aid of power in any of factory’s part or
• 20 or more workers work or were working on any day of preceding 12 months and
• Where a manufacturing process is carried out without aid of power in any of factory’s part.

EXCEPT-

• Mine subject under the Mines Act, 1952(35 of 1952) or
• Mobile unit belonging to armed forces of the union or
• Railway running shed or
• Hotel, restaurant or eating place.

Explanation

• Calculation of number of workers in a day = different groups + relays.
• Not a factory- Premises or part of it, set up with on Electronic data Processing Unit or Computer Unit without any manufacturing process being carried out.

CASE 1- Employees State Insurance Corporation V Jalandhar Gymkhana Club

Held, that preparation of food and drinks in kitchen attached to club and preservation and storing of articles in cold storage would be manufacturing process under section 2(k) under Factory Act and therefore it follows that the premises of the club is a factory under section 2(m).

CASE 2- V.P. Gopala Rao V Public Prosecutor, Andhra Pradesh

Sun-cured tobacco leaves was subject to processes of moistening, stripping and packing in a company premise with a view to their use and transport to company’s main factory for manufacturing cigarettes. More than 20 persons under supervision of management were working in the premises. It was held that the manufacturing process was carried on in the premises and the persons employed were “workers’ and premises a “factory’ within the meaning under section 2(m) of Factory Act.

II. Section 85: Power to apply the Act to certain premises-

(1)The State Government may, by notification in the Official gazette,

• declare that all or any of the provisions of this Act,
• shall apply to any place wherein, a manufacturing process is carried on or is so ordinarily carried on,
• with or without the aid of power.

Notwithstanding that-

(i)The number of persons employed therein is:

• less than 10, if working with the aid of power, and
• less than 20 if working without the aid of power, or

(ii)The persons working therein are:

• not employed by the owner thereof,
• but are working with the permission of, or under agreement with, such owner.
• Provided,
• that the manufacturing process is not being carried on by the owner only with the aid of his family.

SECTION 2(ii): INDUSTRIAL OR OTHER ESTABLISHMENT

(a)Tramway or motor transport services:

• engaged in carrying:
  • passengers,
  • goods, or
  • both,
• by road,
• for:
  • hire or
  • reward.

(aa)Air transport services,

• other than, services belonging or exclusively employed,
• in Military, Naval, or Air Force,
• of the Union or Civil aviation department, of the Government of India.

(b)Dock, whether:

• wharf, or
• jetty.

(c)Inland vessel- mechanically propelled.

(d)Mine, whether:

• quarry, or
• oil field.

(e)Plantation

(f)Workshop or other establishment,

• Where, article are:
  • produced,
  • adapted, or
  • manufactured,
• with a view to there:
  • use,
  • transport, or
  • sale.

(g)Establishment, where work is carried out, relating to:

• construction, development, or maintenance,
  • of building, road, bridges, or canals.
• operations, connected to:
  • navigation, irrigation, or supply of water,
• transmission, or distribution, of:
  • electricity or any other form of power.

(h)Any other establishment or class of establishments, specified:

• by, the State Government, or the Central Government,
• through, notification in the Official Gazette,
• in regard to nature thereof:
  • need for protection of persons employed therein, and
  • other relevant circumstances.

SECTION 2(iia): MINE

“mine”, means mine meaning assigned under section 2(1)(j) of the Mine Act, 1952.

Section 2(1)(j): “mine”, the Mine Act, 1952:

• any excavation,
• where, purpose of operation of searching or obtaining minerals,
• has been or is being carried on.

Includes:

(i)all borings, bore holes, oil wells, and accessory crude conditioning plants,

• including pipe conveying, mineral oil, within the oil fields.

(ii) all shafts:

• in or adjacent to and belonging to a mine,
• whether in the course of being sunk or not.

(iii)All levels and inclined planes,

• in the course of being driven.

(iv)All open cast workings;

(v)All conveyors or aerial rope-ways,

• provided for:
  • bringing into or removal from, of minerals or other articles, from mine,
  • removal of refuse there from mine.

(vi)All audits, levels, planes, machinery, works, railways, tramways, and sidings,

• in or adjacent to or belonging to a mine.

(vii)All projective works being carried out or adjacent to a mine.

(viii)All workshops or stores,

• situated:
  • within the precincts of a mine and
  • under the same management,
• used:
  • primarily for the purpose, connected with that mine and no. of mines, and
  • under same management.

(ix)All power stations, transformer sub-stations, converter stations, rectifier stations, accumulator, and storage stations,

• for supplying electricity (solely or mainly),
• for the purpose of working of the mine, or a number of mines, under same management.

(x)Any premises, for the time being:

• used for, depositing, sand or other material for use in a mine,
• in which, any operations is carried out in connection with such sand, refuse, or other material,
• such premises must be exclusively occupied by power of mine.

(xi)Any promises:

• In or adjacent to and belonging to a mine,
• on which, any process:
  • ancillary to getting dressing,
  • preparing for sale of minerals or coke,
• is being carried on.

SECTION 2(iii): PLANTATION

“plantation”, means the meaning assigned under section 2(f) of the Plantation Labour Act, 1951.

Section 2(f):”plantation “of the Plantation Lour Act, 1951:

Any plantation, to which this Act applies wholly or partly-

• Includes:
  • offices,
  • hospitals,
  • dispensaries,
  • schools, and
  • any other premises, used for any purpose connected with such plantation,
• does not include, premises of any factory on which the factory Act, 1948 is applicable.

SECTION 2(vi): WAGES

“Wages” means,

• all remuneration whether, in way of:
  • salary,
  • allowance, or
  • otherwise;
• expressed, in terms of money or capable of being expressed so,
• be payable, if terms (expressed or implied) of employment are fulfilled,
• payable to:
  • person employed in respect of his employment, or
  • work done in such employment.

In simple words, “wages”, means-

• All remuneration,
• due to any worker or employee,
• if, the term of contract of employment are fulfilled.

Definition “wages” is made sufficiently wide as it, includes:

(a)Any remuneration payable under:

• any award or settlement between parties, or
• order of a Court.

(b)Any remuneration, the employed person is entitled to:

• overtime work,
• holidays, or
• leave period.

(c)Any addition remuneration, payable under terms of employment, called:

• bonus, or
• any other.

(d)Any sum payable:

• by reason of termination of employment of person employed,
• being provided, as a payment of such sum under any:
  • law,
  • contract, or
  • instrument;
• whether, with or without deduction;
• within no time being provided.

(e)Any sum to which person employed is entitled under:

• any scheme framed, or
• any law for the time being in force.

Expression, “wages” does not include-

(1)Any bonus,

• under any scheme of profit sharing or otherwise, which:
  • does not, form part of remuneration payable under terms of employment,
  • is not payable under:
    • any award or settlement between the parties, or
    • order of a Court.

(2)Value of any:

• house accommodation,
• supply of:
  • light,
  • water,
  • medical attendance, or
  • other amenity,
• service, excluded from computation of wages, by order (general or special) of the State Government.

(3)Any contribution paid by employer to:

• any pension or provident fund, and
• the interest, may have accrued thereon,

(4)Any travelling:

• allowance, or
• value of it’s concession.

(5)Any sum paid to the employed person:

• to defray special expenses,
• entailed on him, by the nature of his employment.

(6)Any gratuity payable:

• on, termination of employment,
• in cases, other than cases specified under clause (d).

Definition, “wages” comprises of 3 parts-

Part I. All remunerations would be payable:

• to a person employed in respect of his employment,
• if, the terms (expressed or implied) of eth contract, got fulfilled.

(this clause presents no difficulty, whatsoever for it declares in an unambiguous language than on employee is entitled to receive in accordance with the terms of his contract.)

Part II. Wages shall include:

• any bonus or other remuneration,
• of the nature aforesaid would be so payable,
• payable in accordance with the terms of the contract.

Part III. Wages, shall include,

• any sum, payable to such person,
• by reason of termination of his employment.

(the language of this clause is wide enough to embrace not only a sum payable to an employee, under terms of a contract but also a sum payable to him under the provisions of any law.)

FIRST PART END WITH NEED, OBJECTIVE, and DEFINITIONS. NEXT PART CONSISTS OF- RULES FOR PAYMENT OF WAGES (Section 3-6).