(1) This Act may be called the Payment of Wages Act 1936.
(2) It extends to the whole of India.
(3) It shall come into force on such date 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 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 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 this Act or any of them to the payment of wages to any class of persons employed in any establishment of class of establishments specified by the Central Government or a State Government under sub-clause (h) of clause (ii) of section 2:
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.
(6) Nothing in this Act shall apply to wages payable in respect of a wage-period which over such wage-period average one thousand six hundred rupees a month or more.
In this Act, unless the context otherwise requires,—
(a) “appropriate Government” means,—
(i) in relation to an establishment—
(a) belonging to, or under the control of, the Central Government,
(b) having branches in more than one State,
(c) of a factory belonging to, or under the control of, the Central Government,
(d) of a major port, mine, oilfield or railway company, the Central Government,
(ii) in any other case, the State Government;
(b) “completed year of service” means continuous service for one year;
1[(c) “continuous service” means continuous service as defined in section 2A;]
(d) “controlling authority” means an authority appointed by the appropriate Government under section 3;
(e) “employee” means any person (other than an apprentice) employed on wages, 2[***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, 3[and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
4[***]
(f) “employer” means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop—
(i) belonging to, or under the control of, the Central Government or a State Government a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or Department concerned,
(ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive officer of the local authority,
(iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person;
(g) “factory”, has the meaning assigned to it in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);
(h) “family” in relation to an employee, shall be deemed to consist of—
(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents 5[and the dependent parents of his wife and the widow] and children of his predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any;
6[***]
Explanation.—Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee;
(i) “major port” has the meaning assigned to it in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908);
(j) “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);
(k) “notification” means a notification published in the Official Gazette;
(l) “oilfield” has the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948);
(m) “plantation” has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);
(n) “port” has the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908);
(o) “prescribed” means prescribed by rules made under this Act;
(p) “railway company” has the meaning assigned to it in clause (5) of section 3 of the Indian Railways Act, 1890 (9 of 1890);
(q) “retirement” means termination of the service of an employee otherwise than on superannuation;
7[(r) “superannuation”, in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employer shall vacate the employment;]
(s) “wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employments and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
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1. Subs. by Act 26 of 1984, sec. 3, for clause (c) (w.r.e.f. 11-2-1981).
2. Certain words omitted by Act 34 of 1994, sec. 2 (w.e.f. 24-5-1994).
3. Subs. by Act 25 of 1984, sec. 2, for certain words (w.e.f. 1-7-1984).
4. Explanation omitted by Act 34 of 1994, sec. 2 (w.e.f. 24-5-1994).
5. Subs. by Act 22 of 1987, sec. 2, for “and the widow” (w.e.f. 1-10-1987).
6. The proviso omitted by Act 22 of 1987, sec. 2 (w.e.f. 1-10-1987).
7. Subs. by Act 25 of 1984, sec. 2, for clause (r) (w.e.f. 1-7-1984).
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(1) Every employer shall be responsible for the payment of all wages required to be paid under this Act to persons employed by him and in case of persons employed,—
(a) in factories, if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishment;
(c) upon railways (other than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned;
(d) in the case of contractor, a person designated by such contractor who is directly under his charge; and
(e) in any other case, a person designated by the employer as a person responsible for complying with the provisions of the Act;
the person so named, the person responsible to the employer, the person so nominated or the person so designated, as the case may be, shall be responsible for such payment.
(2) Notwithstanding anything contained in sub-section (1), it shall be the responsibility of the employer to make payment of all wages required to be made under this Act in case the contractor or the person designated by the employer fails to make such payment.]
Statement of Objects and Reasons [The Payment of Wages (Amendment) Act, 2005]
Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redresal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same. In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which respectively deal with responsibility for payment of wages, deductions from wages fines and claims in certain cases.
State Amendments
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].
Madhya Pradesh.—In section 3, for the proviso the following proviso shall be substituted, namely,—
“Provided that, in the case of a person employed (otherwise than by a contractor)—
(a) in factories, if a person has been named as the manager of the factory under clause (j) of sub-section (1) of section 7 of the Factories Act, 1948
(63 of 1948), then the person so named and the employer jointly and severally;
(b) in industrial establishments, if there is a person responsible to the employer for the supervision and control of the industrial establishment, then the person so responsible and the employer jointly and severally;
(c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, then the person so nominated,
shall be responsible for such payment.”
[Vide Madhya Pradesh Act 9 of 1964, sec. 3 (w.e.f. 15-5-1964)].
Maharashtra.—In section 3, for the proviso the following shall be substituted, namely,—
“Provided that, in the case of persons employed otherwise than by a contractor—
(a) in factories, if a person has been named as the manager of the factory under clause (j) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948) then the person so named, the employer, jointly severally;
(b) in industrial establishments, if there is a person responsible to the employer for the supervision and control of the industrial establishment then the person so responsible and employer, jointly and severally;
(c) upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, then the person so nominated,
shall be responsible for such payment.”
[Vide Bombay Act 62 of 1953, sec. 2 (w.e.f. 10-5-1954), Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
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1. Subs. by Act 41 of 2005, sec. 5, for section “3. Responsibility for payment of wages.—Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act:
Provided that, in the case of persons employed (otherwise than by a contractor)—
(a) in factories, if a person has been named as the manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948);
(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;]
(c) upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned,
the person so named, the person so responsible to the employer, or the person so nominated, as the case may be shall also be responsible for such payment” (w.e.f.
9-11-2005).
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(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-period) in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month.
(1) The wages of every person employed upon or in—
(a) any railway, factory or 1[industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,
(b) any other railway, factory or 1[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:
2[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:
2[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 recognised 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 3[4[The appropriate 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 employed upon any railway (otherwise than in a factory) 1[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 of any such persons or class of such persons:
5[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) 6[Save as otherwise provided in sub-section (2), all payments] of wages shall be made on a working day.
State Amendments
Andaman and Nicobar Islands.—In section 5, for sub-section (1), the following sub-section shall be substituted, namely:—
“(1) The wages of every person employed upon or in any railway, factory or industrial establishment shall be paid before the expiry of such number of days after the last day of the wage-period in respect of which the wages are payable as the State Government may be general or special order, specify and different number of days may be specified for different areas; so, however, that the number of days so specified shall not exceed the wage-period next following the wage-period in respect of which the wages are payable.”
[Vide Regulation 5 of 1965, sec. 2 (w.e.f. 8-7-1965)].
Lakshadweep.—In section 5, for sub-section (1), substitute the following, namely:—
“(1) The wages of every person employed in any factory or industrial establishment shall be paid before the expiry of such number of days, after the last day of the wage-period in respect of which the wages are payable, as the State Government may, by general or special order, specify, and different number of days may be specified for different areas, so, however, that the number of days so specified shall not exceed the wage-period next following the wage-period in respect of which the wages are payable.”
[Vide Regulation 2 of 1974, sec. 2 (w.e.f. 8-4-1974)].
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1. Subs. by Act 38 of 1982, sec. 6, for “industrial establishment” (w.e.f. 15-10-1982).
2. Added by Act 53 of 1964, sec. 5 (w.e.f. 1-2-1965).
3. Subs. by the A.O. 1937, for “Governor-General in Council”.
4. Subs. by Act 41 of 2005, sec. 3, for “the State Government”.
5. Ins. by Act 53 of 1964, sec. 5 (w.e.f. 1-2-1965).
6. Subs. by Act 53 of 1964, sec. 5, for “All payments” (w.e.f. 1-2-1965).
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All wages shall be paid in current coin or currency notes or in both:
1[Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]
State Amendments
Andhra Pradesh.—In section 6, after the existing proviso add further proviso namely:—
“Provided further that the State Government may, by notification in the Andhra Pradesh Gazette, specify the industrial establishments, the employers of which shall pay to the persons employed therein, the wages either by cheque or by crediting the wages in their bank account”—
[Vide Andhra Pradesh Act 15 of 1982, sec. 2 (w.e.f. 7-10-1982)].
Assam.—In section 6, add the following proviso and Explanation—
“Provided that notwithstanding anything contained in the Payment of Bonus Act, 1965, one-third of the amount of bonus payable to an employed person in a particular year in excess of rupees forty may be paid or invested into the National Defence Certificates or National Savings Certificates (First Issue), if the employed person records his assent by furnishing a no-objection certificate in the manner to be prescribed, to his employer.
Explanation.—For the purposes of this section, the expression (1) ‘wages’ shall include any bonus of the description given in sub-clause (1) of clause (vi) of section 2; and (2) ‘bonus’ mean bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court, and also includes any bonus of the description given in sub-clause (1) of clause (vi) of section 2.“
[Vide Assam Act 1 of 1970, sec. 2].
Bihar.—In section 6, the following proviso shall be added, namely:—
“Provided that where the amount of entire bonus payable during a year to an employed person under the terms of employment or under any award or settlement or orders of a Court exceeds an amount equal to one-forth of his earnings (exclusive of dearness allowance) for that year such excess shall be paid to him or invested on his behalf in the manner prescribed.”
[Vide Bihar Act 4 of 1961, sec. 2 (w.e.f. 9-3-1961) as amended by Bihar Act 4 of 1963, sec. 2].
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 3 (w.e.f. 12-6-1961)].
Maharashtra.—For section 6, the following shall be substituted—
“6. Wages to be paid in current coins or currency notes.—All wages shall be paid in current coins or currency notes, or in both:
Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-forth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.”
Explanation.—For the purpose of this section, the expression—
(1) ‘wages’ shall include any bonus of the description given in sub-clause (1) of clause (iv) of section 2, and
(2) ‘bonus’ means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause (1) of clause (vi) of section 2.”
[Vide Maharashtra Act 13 of 1961, sec. 4 (w.e.f. 4-3-1961).
Orissa.—In section 6, the following proviso shall be added, namely:—
“Provided that when the amount of bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.”
[Vide Orissa Act 4 of 1961, sec. 2 (w.e.f. 11-2-1961)].
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1. Ins. by Act 29 of 1976, sec. 3 (w.r.e.f. 12-11-1975).
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(1) Notwithstanding the provisions of 1[the Railways Act, 1989 (24 of 1989)] the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act.
2[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.
3[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.]
(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;
4[(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 subsidising 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 5[***] State Government 6[or any officer specified by it in this behalf] may, by general or special order, authorise;
Explanation.—The word “services” in 7[this clause] does not include the supply of tools and raw materials required for the purposes of employment;
8[(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages;
(ff) deductions for recovery of loans 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;
(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 9[in clasue (38) of section 2 of the Income-tax Act, 1961 (43 of 1961)] or any provident fund approved in this behalf by 10[the appropriate Government], during the continuance of such approval; 11[***]
(j) deductions for payments to co-operative societies as approved by 10[the appropriate Government] 12[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office; 5[and]
13[14[(k) deductions, made with the written authorisation 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;]]
15[(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, and approved by 10[the appropriate Government] or any officer specified by it in this behalf, during the continuance of such approval;
(kkk) deductions made, with the written authorisation 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);]
16[(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, wharfage and cranage 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;]
17[(p) deductions, made with the written authorisation 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;]
18[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]
19[(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 per cent. of such wages:
Provided that where the total deductions authorised under sub-section (2) exceed seventy-five per cent. or, as the case may be, fifty per cent. 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 20[the Railways Act, 1989 (24 of 1989)].
Statement of Objects and Reasons [The Payment of Wages (Amendment) Act, 2005]
Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redresal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same. In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which respectively deal with responsibility for payment of wages, deductions from wages fines and claims in certain cases.
State Amendments
Bihar.—In section 7, in sub-section (2), in clause (d), after the word ‘employer’ the words “or by the State Government or by a statutory housing board or by such an agency as the State Government notify” shall be inserted.
[Vide Bihar Act 28 of 1956, sec. 2 (w.e.f. 23-11-1956)].
Gujarat.—In section 7, in sub-section (2), in clause (k), the words “for being deposited in any post office. Savings Bank” shall be deleted.
[Vide Gujarat Act 26 of 1961, sec. 4 (w.e.f. 12-6-1961)].
Karnataka.—In section 7, in sub-section (2), after clause (p) the following clauses shall be added, namely:—
“(q) deductions to recover from a person re-employed after the termination of his former employment any amount paid to him from a provident fund or as a gratuity on such termination:
Provided that such recovery shall not exceed 20 per cent. of total earnings. re-employment in this context means employment under the same employer.”.
(r) [Omitted by Karnataka Act 2 of 1982, sec. 2 (w.e.f. 28-1-1982).]
Kerala.—In section 7, in sub-section (2), after clause (o), the following clause shall be inserted, namely,—
“(p) deduction for re-payment to the State Government of the amount of financial aid granted under the Kerala Financial Aid to the Discharged or Dismissed Labour Rules, 1958.”
[Vide Kerala Act 34 of 1959, sec. 2 (w.e.f. 8-10-1969)].
Madhya Pradesh.—In section 7, in sub-section (2), after clause (e), insert the following clause, namely:—
“(ee) deduction with the written authorization of the person employed for payment of any subscription to any welfare scheme sponsored by the employees whether with or without participation of employer, such as Employees’ Death Relief Scheme and approved by such authority and in such manner as may be prescribed.”
[Vide Madhya Pradesh Act 33 of 1976, sec. 3].
Maharashtra.—In section 7, in sub-section (2), in clause (d), after the word “employer” the following shall be added, namely:—
“or the State Government, or the Bombay Housing Board constituted under the Bombay Housing Board Act, 1948 (Bom LXIX of 1948), or such other agency as the State Government may, by notification in the Official Gazette, direct.”
[Vide Maharashtra Act 37 of 1956, sec. 2 (w.e.f. 19-7-1956)].
In section 7, in sub-section (2)—
(a) in clause (j) the word “and” at the end shall be deleted;
(b) after clause (k) the following new clause shall be added, namely:—
“(l) deduction made, with the consent of the person employed, for contribution towards any public charitable purpose which the State Government may by notification in the Official Gazette specify in that behalf.”
[Vide Maharashtra Act 42 of 1961, sec. 2 (w.e.f. 9-10-1961)].
In section 7, in sub-section (2), in clause (k), the words for “being deposited in any post office, Savings Bank” shall be deleted.
[Vide Maharashtra Act 13 of 1961, sec. 5 (w.e.f. 4-3-1961)].
Orissa.—In section 7, in sub-section (2), in clause (d), after the words “supplied by the employers” the words “or by the State Government or by any Housing Board or agency which the State Government may notify this behalf shall be inserted.
[Vide Orissa Act 22 of 1956, sec. 2 (w.e.f. 29-10-1956)].
Pondicherry.—In section 7, in sub-section (2) after clause (d), the following clause shall be inserted, namely:—
“(dd) deductions for electricity supplied to the employed person by the Electricity Department of the Government of Pondicherry.”
[Vide Pondicherry Act 9 of 1970, sec. 2 (w.e.f. 25-5-1970)].
Tamil Nadu.—In Section 7, in sub-section (2), after clause (d), insert the following clause, namely:—
“(dd) deductions for electricity supplied to the employed person by the Tamil Nadu Electricity Board under section 5 of the Electricity (Supply) Act, 1948 (Central Act 54 of 1948), hereinafter in this Act referred to as the State Electricity Board.”
[Vide Tamil Nadu Act 20 of 1963 and T.N.A.L.O. 1970].
In section 7, in sub-section (2) after clause (g), the following clause shall be inserted, namely:—
“(gg) deductions of profession tax payable by the employed person to any local authority.”
[Vide Tamil Nadu Act 47 of 1974, sec. 2].
West Bengal.—In section 7, in sub-section (2), after clause (e), the following clause shall be inserted, namely:—
“(ee) deductions for contribution to a fund created under a ‘Death Benefit Scheme’ approved by the State Government and designed to render pecuniary assistance to the nominees of a deceased employed person nominated in such manner as may be prescribed who had been a member of such a scheme:
Provided that no deduction shall be made without written authorization of the employed person in the form and manner prescribed in the scheme.
Explanation I.—(1) Where the employed person has a family, a member of the family, shall be nominated.
(2) Where the employed person has no family, any person may be nominated.
Explanation II.—For the purpose of Explanation I,—
(1) The family of a male employed person shall include his wife, legitimate children, dependent parents, the widow and legitimate children of his predeceased son:
Provided that if such employed person proves that his wife has ceased, under the personal law governing him or the customary law of the community to which the spouses belong, to be entitled to maintenance from him, the wife shall not be regarded as a member of his family:
Provided further that such employed person may subsequently by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that his wife may continue to be regarded as a member of his family;
(2) The family of a female employed person shall include her husband, legitimate children, dependent parents, husband’s dependent parents, the widow and legitimate children of her predeceased son:
Provided that such employed person may by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that her husband and his dependent parents have been excluded from her family:
Provided further that such employed person may subsequently by a notice in writing to such authority cancel the aforesaid notice; and
(3) If a legitimate child of an employed person or of a predeceased son of an employed person is validily adopted by any other person under any law in force for the time being, such child shall not be a member of the family of such employed person.
[Vide West Bengal Act 26 of 1975 as amended by West Bengal Act 19 of 1981
(w.e.f. 4-7-1981)].
-----------------------------------
1. Subs. by Act 41 of 2005, sec. 6(a) for “sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)” (w.e.f. 9-11-2005).
2. Explanation re-numbered as Explanation I by Act 68 of 1957, sec. 5 (w.e.f 1-4-1958).
3. Ins. by Act 68 of 1957, sec. 5 (w.e.f. 1-4-1958).
4. Subs. by Act 68 of 1957, sec. 5, for clause (d) (w.e.f. 1-4-1958).
5. The words “Governor-General in Council or” omitted by the A.O. 1937.
6. Ins. by Act 53 of 1964, sec. 6 (w.e.f. 1-2-1965).
7. Subs. by Act 56 of 1974, sec. 3 and Sch. II, for “this sub-clause”.
8. Subs. by Act 53 of 1964, sec. 6, for clause (f) (w.e.f. 1-2-1965).
9. Subs. by Act 41 of 2005, sec. 6(b), for “in section 58A of the Indian Income-tax Act, 1922 (11 of 1922)” (w.e.f. 9-11-2005).
10. Subs. by Act 41 of 2005, sec. 3, for “the State Government”.
11. The word “and” omitted by Ordinance 3 of 1940, sec. 2.
12. Ins. by Act 53 of 1964, sec. 6 (w.e.f. 1-2-1965).
13. Added by Ordinance 3 of 1940, sec. 2.
14. Subs. by Act 68 of 1957, sec. 5, for clause (k) (w.e.f. 1-4-1958).
15. Ins. by Act 38 of 1982, sec. 7 (w.e.f. 15-10-1982).
16. Ins. by Act 53 of 1964, sec. 6 (w.e.f. 1-2-1965).
17. Ins. by Act 29 of 1976, sec. 4 (w.e.f. 12-11-1976).
18. Ins. by Act 19 of 1977, sec. 2 (w.e.f. 30-6-1977).
19. Ins. by Act 53 of 1964, sec. 7 (w.e.f. 1-2-1965).
20. Subs. by Act 41 of 2005, sec. 6(c), for “the Indian Railways Act, 1890 (9 of 1890)” (w.e.f. 9-11-2005).
-----------------------------------
(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 1[the appropriate 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 persons 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 otherwise, 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 2[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 instalments or after the expiry of 3[ninety 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 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; and all such realisations 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 4[industrial or other establishment] are part only of a staff employed under the same management, all such realisations 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.
Statement of Objects and Reasons [The Payment of Wages (Amendment) Act, 2005]
Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redresal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same. In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which respectively deal with responsibility for payment of wages, deductions from wages fines and claims in certain cases.
State Amendments
Andhra Pradesh.—In section 8, in sub-section (8), before the Explanation insert the following, namely:—
“but in the case of any establishment to which the Andhra Pradesh Labour Welfare Fund Act, 1987 applies, all such realizations shall be paid into the fund constituted under the said Act.”
[Vide Andhra Pradesh Act 34 of 1987, sec. 39 (w.e.f. 1-5-1988)].
Gujarat (Bombay Area).—Same as that of Maharashtra.
Karnataka.—In section 8, in sub-section (8), add the following before the Explanation, namely:—
“but in the case of any factory establishment to which the Mysore Labour Welfare Fund Act, 1965 applies, all such realizations shall be paid into the fund constituted under the said Act.”
[Vide Mysore Act 15 of 1965. sec. 25 (w.e.f. 5-8-1965)].
Kerala.—In section 8, in sub-section (8), before the Explanation, the following proviso shall be inserted, namely:—
“Provided that in the case of any establishment to which the Kerala Labour Welfare Fund Act, 1975, applies, all such realizations shall be paid into the fund constituted under that Act.”
[Vide Kerala Act 11 of 1977, sec. 43 (w.e.f. 1-5-1977)].
Maharashtra.—In its application to the Bombay Area of the State of Maharashtra, in section 8, in sub-section (8), before the Explanation add the following namely:—
“but in the case of any factory or establishment to which the Bombay Labour Welfare Fund Act, 1953, applies, all such realizations shall be paid into the fund constituted under the said Act.”
[Vide Bombay Act 40 of 1953, sec. 23].
Punjab, Haryana.—See Proviso II to section 10(2) of the Punjab Labour Welfare Fund Act, 1965 (Punjab Act 17 of 1965) and Act 31 of 1966, sec. 88.
Tamil Nadu.—In section 8, in sub-section (8), in the last sentence the following shall be added at the end, namely:—
“but in the case of any establishment to which the Tamil Nadu Labour Welfare Fund Act, 1972 applies all such realization shall be paid into the Fund constituted under the aforesaid Act.”
[Vide Tamil Nadu Act 36 of 1972, sec. 43 (w.e.f. 1-1-1973)].
Uttar Pradesh.—In section 8, in sub-section (8), add the following proviso, namely:—
“Provided that in the case of any factory or establishment to which the U.P. Welfare Fund Act, 1965, applies, all such realization shall be paid into the fund established under the said Act.”
[Vide Uttar Pradesh Act 14 of 1965, sec. 23 (w.e.f. 26-7-1965)].
---------------------------------
1. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
2. Subs. by Act 38 of 1982, sec. 8, for “half-an-anna in the rupee” (w.e.f. 15-10-1982).
3. Subs. by Act 41 of 2005, sec. 7, for “sixty days” (w.e.f. 9-11-2005).
4. Subs. by Act 38 of 1982, sec. 8, for “industrial establishment” (w.e.f. 15-10-1982).
---------------------------------
(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 1[the appropriate 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.
2[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.]
-----------------------------
1. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
2. Added by Act 22 of 1937, sec. 2.
-----------------------------
1[(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.
-----------------------------
1. Subs. by Act 53 of 1964, sec. 7, for sub-section (1) (w.e.f. 1-2-1965).
-----------------------------
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 a deduction under the said clause (e), shall be subject to such conditions as 1[***] 2[the appropriate Government] may impose.
State Amendments
Section 11A
Pondicherry.—After section 11, insert the following section, namely:—
“11A. The employer shall, if so required by a requisition in writing, by the Electricity Department of the Government of Pondicherry or by an officer authorized by it in this behalf, make the deductions authorized under clause (dd) of sub-section (2) of Section 7 from the wages of the employed person and remit the amount so deducted in such manner as the State Government may, by general or special order, specify.”
[Vide Pondicherry Act 9 of 1970, sec. 3 (w.e.f. 25-5-1970)].
Tamil Nadu.—After section 11, insert the following section, namely:—
“11A. Deductions in respect of house accommodation.—The employer shall make the deductions authorized under clause (d) of sub-section (2) of
section 7 from the wages of the employed person and remit the amount so deducted in such manner as the State Government may, by general or special order specify.”
[Vide Tamil Nadu Act 9 of 1959, sec. 4 and Act 14 of 1962, sec. 2 and First Sch. (w.e.f. 9-1-1963)].
Section 11B
Tamil Nadu.—Same as section 11A in Pondicherry.
[Vide Tamil Nadu Act 20 of 1963, sec. 3 (w.e.f. 6-11-1963)].
Section 11C
Tamil Nadu.—After section 11B, insert the following section, namely:—
“11C. Deductions in respect of profession tax.—The employer shall, if so required by a requisition in writing, by the local authority concerned or by an officer authorized by it in this behalf, make the deductions authorized under clause (gg) of sub-section (2) of section 7 from the wages of the employed person and remit the amount so deducted to the credit of the local authority concerned in such manner as the State Government may, by general or special order, specify.”
[Vide Tamil Nadu Act 47 of 1974, sec. 3].
-----------------------------------------
1. The words “the Governor-General in Council or” omitted by the A.O. 1937.
2. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
-----------------------------------------
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;
1[(aa) recovery of an advance of money given after employment began shall be subject to such conditions as 2[the appropriate Government] may impose;]
(b) recovery of advances of wages not already earned shall be subject to any rules made by 2[the appropriate Government] regulating the extent to which such advances may be given and the instalments by which they may be recovered.
------------------------------------
1. Ins. by Act 53 of 1964, sec. 8 (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
------------------------------------
Deductions for recovery of loans granted under clause (fff) of sub-section (2) of section 7 shall be subject to any rules made by 2[the appropriate Government] regulating the extent to which such loans may be granted and the rate of interest payable thereon.]
------------------------------------
1. Ins. by Act 53 of 1964, sec. 9 (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
------------------------------------
Deductions under clause (j) 1[and clause (k)] of sub-section (2) of section 7 shall be subject to such conditions as 2[the appropriate Government] may impose.
State Amendment
Karnataka.—In section 13,
(1) for the headline the following heading shall be substituted, namely—
“13. Other deductions.”
(2) for the words, letters and brackets, “under clause (j) and clause (k)” the words, letters and brackets, “under clause (j), clause (k) and clause (q)” shall be substituted.
[Vide Karnataka Act 2 of 1977 as amended by Karnataka Act 2 of 1982 sec. 3 (w.e.f. 28-1-1982)].
----------------------------------------
1. Ins. by Ordinance 3 of 1940, sec. 3.
2. Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f. 9-11-2005).
----------------------------------------
(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.]
--------------------------------------
1. Ins. by Act 53 of 1964, sec. 10 (w.e.f. 1-2-1965).
--------------------------------------
(1) An Inspector of Factories appointed under 1[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) 2[The appropriate 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.
(3) 2[The appropriate 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 3[industrial or other establishments] in respect of which they shall exercise their functions.
4[(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 thereunder are being observed;
(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of any railway, factory or 3[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 3[industrial or other establishment;]
(d) require by a written order the production at such place, as may be prescribed, of any register or record 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 5[Code of Criminal Procedure, 1973 (2 of 1974)] shall, so far as may be, 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 6[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).
------------------------------------
1. Subs. by Act 68 of 1957, sec. 6, for “sub-section (1) of section 10 of the Factories Act, 1934 (25 of 1934)” (w.e.f. 1-4-1958).
2. Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f. 9-11-2005).
3. Subs. by Act 38 of 1982, sec. 9, for “industrial establishments” (w.e.f. 15-10-1982).
4. Subs. by Act 53 of 1964, sec. 11, for sub-section (4) (w.e.f. 1-2-1965).
5. Subs. by Act 38 of 1982, sec. 9, for “Code of Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 15-10-1982).
6. Subs. by Act 38 of 1982, sec. 9, for “section 98” (w.e.f. 15-10-1982).
------------------------------------
Every employer shall afford an Inspector all reasonable facilities for making any entry, inspection, supervision, examination or inquiry under this Act.]
------------------------------------
1. Ins. by Act 53 of 1964, sec. 12 (w.e.f. 1-2-1965).
------------------------------------
1[(1) The appropriate Government may, by notification in the Official Gazette, appoint—
(a) any Commissioner for Workmen’s Compensation; or
(b) any officer of the Central Government exercising functions as,—
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years’ experience; or
(c) any officer of the State Government not below the rank of Assistant Labour Commissioner with at least two years’ experience; or
(d) 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
(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate, as 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, of persons employed or paid in that area, including all matters incidental to such claims:
Provided that where the appropriate 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 authorised 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 2[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 of 2[twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.
3[(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 may be 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 not exceeding three thousand rupees but not less than one thousand five hundred rupees in the latter, and even if the amount deducted or delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding two thousand rupees:
Provided that a claim under this Act shall be disposed of as far as practicable within a period of three months from the date of registration of the claim by the authority:
Provided further that the period of three months may be extended if both parties to the dispute agree for any bona fide reason to be recorded by the authority that the said period of three months may be extended to such period as may be necessary to dispose of the application in a just manner:
Provided also 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, the person responsible for the payment of the wages was unable, in spite of exercising reasonable diligence; or
(c) the failure of the employed person to apply for or accept payment.]
4[(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 5[not exceeding three hundred seventy five 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 5[not exceeding three hundred seventy five rupees] be paid to 6[the appropriate 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 not a Magistrate, by any Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.
a fine imposed by such Magistrate."
Statement of Objects and Reasons [The Payment of Wages (Amendment) Act, 2005]
Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redresal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same. In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which respectively deal with responsibility for payment of wages, deductions from wages fines and claims in certain cases.
State Amendments
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].
Haryana.—In section 15, in sub-section (1), after the proviso, the following further proviso shall be added:—
“Provided further that the State Government may transfer any matter from one authority to the another authority.”
[Vide Haryana Act 5 of 1985, sec. 2 (w.e.f. 12-4-1985)].
Karnataka.—(1) In its application to the State of Mysore, in section 15 for the words ‘stipendiary Magistrate’, substitute the words ‘Judicial Magistrate’.
[Vide Mysore Act 13 of 1965, sec. 66 and Sch. (w.e.f. 1-10-1965)].
(2) In section 15—
(1) in sub-section (2), after the word, brackets and figure “sub-section (3)”, the following shall be inserted, namely:—
“and in case of death of the employed person, it shall be lawful for his legal representatives to make an application for such direction”;
(2) for sub-section (5), the following sub-section shall be substituted, namely:—
“(5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall for that purpose be deemed to be a public officer within the meaning of section 5 of the Revenue Recovery Act, 1890”.
[Vide Karnataka Act 2 of 1977, sec. 5 (w.e.f. 1-2-1982)].
Madhya Pradesh.—In section 15,
(i) in sub-section (1), for the words beginning with “any Commissioner” and ending with “to be the authority”, substitute the words “one or more persons to be the authority or authorities”;
(ii) after sub-section (1), insert the following sub-sections, namely:—
“(1A) A person shall not be qualified for appointment as an authority under this Act, unless he is a Commissioner for Workmen’s Compensation or any other officer with experience as a Judge of a Civil Court or of a Labour Court constituted under the Madhya Pradesh Industrial Relations Act, 1960.
(1B) Where more than one persons are appointed for any specified area as authorities under sub-section (1), the State Government may, by general or special order, make arrangement as it thinks fit for the distribution of the work among the authorities so appointed”.;
(iii) in sub-section (2),—
(a) after the words “to act on his behalf”, insert the words “or a representative union recognised as such under the Madhya Pradesh Industrial Relations Act, 1960”;
(b) after the words “sub-section (3)”, insert the words “and in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction”;
(iv) in sub-section (3),—
(a) after the words “employed person”, insert the words “or his legal representative, as the case may be”;
(b) for the words “ten rupees in the latter”, substitute the words “twenty-five rupees in the latter case and the authority may direct the payment of such compensation in cases, where the amount deducted or delayed wages are paid by the employer to the employed person or his legal representative before the disposal of the application”;
(c) in the proviso, after the words “employed person” occurring twice, insert the words “or legal representative”;
(v) for sub-section (4), substitute the following, namely:—
“(4) the authority hearing an application under this section is satisfied,—
(i) that the application was either malicious or vexatious, the authority may direct that any 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
(ii) 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 also paid by the employer or other person responsible for the payment of wages which shall, when paid or recovered, be credited to the State Government.
(4a) Where a question arises as to whether any person is or is not a legal representative of the deceased employed person, such question shall be determined by the authority appointed under sub-section (1) and his decision shall be final.
(4b) The payment of the amount directed to be paid under this section to the employed person or his legal representative, as the case may be, shall be a full and complete discharge of the employer from the liability to make such payment under this Act, and no further claim shall lie against the employer in respect thereof”.
[Vide Madhya Pradesh Act 11 of 1964, sec. 4 (w.e.f. 15-5-1964)].
Maharashtra.—In its application to the State of Bombay (which term shall stand unmodified—(Gujarat and Maharashtra A.L.O., 1960), in section 15,—
(a) in sub-section (1), for the words and figures beginning with “appoint any” and ending with “to be the authority”, substitute the words “appoint one or more persons to be the authority or authorities”.
[Vide Bombay Act 48 of 1955, sec. 3(a), w.e.f. 1-7-1956; Maharashtra Act
13 of 1961 sec. 2 (w.e.f. 4-3-1961)].
(b) after sub-section (1), insert the following new sub-sections, namely:—
“(1A) A person shall not be qualified for appointment as an authority under this Act unless he is a Commissioner for Workmen’s Compensation or any other officer with experience as a Judge of a Civil Court or as a stipendiary Judicial Magistrate or as a Judge of a Labour Court or as a judicial member of the Industrial Court constituted under the Bombay Industrial Relations Act, 1946, or as a presiding officer of a Tribunal constituted under the Industrial Disputes Act, 1947.
(1B) Where more than one person are appointed for any specified area as authorities under sub-section (1), the State Government may by general or special order make such arrangements as it thinks fit for the distribution of the work among the authorities so appointed.
[Vide Bombay Act 48 of 1955, sec. 3(b), (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(c) in sub-section (2),—
(i) after the words “to act on his behalf”, insert the words and figures “or a representative union registered as such under the Bombay Industrial Relations Act, 1946,”;
(ii) after the word, brackets and figure “sub-section (3)”, insert the following, namely, “and in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction”;
[Vide Bombay Act 48 of 1955, sec. 3(c), (w.e.f. 1-7-1956)].
(iii) in both the provisos, for the words “six months”, substitute the words “one year”,
[Vide Bombay Act 62 of 1953, sec. 4(2) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 6 (w.e.f. 4-3-1961)].
(d) in sub-section (3)—
(i) for the words “refund to the employed person”, substitute the words “refund to the employed person or his legal representative, as the case may be”;
[Vide Bombay Act 48 of 1955, sec. 3(d) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(ii) for the words “ten rupees”, substitute the words “twenty-five rupees”;
[Vide Bombay Act 62 of 1953, sec. 4 (3) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(iii) after the words “twenty-five rupees in the latter”, insert the following words, namely:—
“and the authority may direct the payment of such compensation in cases, where the amount deducted or delayed wages are paid by the employer to the employed person or his legal representative before the disposal of the application”;
[Vide Bombay Act 48 of 1955, sec. 3(d); Maharashtra Act 13 of 1961,
sec. 2 (w.e.f. 4-3-1961)].
(iv) in the proviso, after the words “employed person”, at both the places where they occur, insert the words “or his legal representative”.
(e) for sub-section (4), substitute the following namely:—
“(4) If the authority hearing any application under this section is satisfied,—
(i) 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
(ii) 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 also paid by the employer or other person responsible for the payment of wages. The amount of such penalty when paid or recovered shall be credited to the State Government”;
[Vide Bombay Act 62 of 1953, sec. 4(5) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(f) for sub-section (5), substitute the following, namely:—
“(5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall for that purpose be deemed to be a public officer within the meaning of section 5 of Revenue Recovery Act, 1890”;
[Vide Bombay Act 70 of 1954, sec. 2 (w.e.f. 15-11-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(g) after sub-section (5), add the following sub-section, namely:—
“(6) Where a question arises as to whether any person is or is not a legal representative of the deceased employed person, such question shall be determined by the authority and the decision of the authority shall be final”.
[Vide Bombay Act 48 of 1955, sec. 3(e) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
Rajasthan.—In sub-section (1), after the expression “stipendiary Magistrate” the expression “or a Vikas Adhikari appointed under the Rajasthan Panchayat Samitis and Zila Parishads Act, 1959 (Rajasthan Act 37 of 1959) shall be inserted.
[Vide Rajasthan Act 11 of 1976, sec. 2].
Tamil Nadu.—In section 15, for sub-section (5), the following sub-section shall be substituted, namely:—
“(5) If any amount directed to be paid under this section is not paid by the employer or by other person responsible for payment of wages under section 3 to the person entitled thereto, the authority shall, on an application made to it by such person himself, or any legal practitioner, or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, issue a certificate for that amount to the Collector, who shall recover the same, as arrears of land revenue and pay the same to the person entitled thereto.”
[Vide Tamil Nadu Act 27 of 1986].
Section 15A
Andhra Pradesh.—After section 15, insert the following section, namely:—
“15A. Exemption of court-fees in respect of proceedings under section 15.—(1) In respect of any proceedings under section 15, the applicant shall not be liable to pay any court-fees, other than fees, payable for service of process:
Provided that, where the application is presented by an Inspector or any person acting with the permission of the authority appointed under sub-section (1) of section 15, he shall not also be liable to pay the fees for service of process.
(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate in the manner prescribed the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for payment of wages under section 3 to pay the amount to the State Government. Where the amount is not so paid, it shall, without prejudice to any other mode of recovery, be recoverable as if it were an arrear of land revenue.
[Vide Andhra Pradesh Act 21 of 1968, sec. 2 (w.e.f. 26-10-1968)].
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].
Karnataka.—After section 15, the following section shall be inserted, namely:—
“15A. Liability for payment of court-fees.—(1) In any proceedings under section 15, the applicant shall not be liable to pay any court-fees (other than fees payable for the service of process in respect of such proceedings):
Provided that when the application is presented by an Inspector he shall not be liable to pay the process fees also.
(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employee or other person responsible for the payment of wages under section 3 to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.
(3) When an appeal is preferred under section 17 by a person making an application under section 15, the provisions of sub-sections (1) and (2) shall mutatis mutandis apply with the modification that such person, not being an Inspector, shall pay court-fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal.”
[Vide Karnataka Act 2 of 1997, sec. 6 (w.e.f. 1-12-1982)].
Maharashtra.—In its application to the State of Bombay, after section 15, insert the following section, namely:—
“15A. Liability for payment of court-fees.—(1) In any proceedings under section 15, the applicant shall not be liable to pay any court-fees (other than fees payable for the service of process) in respect of such proceedings:
Provided that when the application is presented by an Inspector he shall not be liable to pay the process fees also.
(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employee or other person responsible for the payment of wages under section 3 to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.”
[Vide Bombay Act 62 of 1953, sec. 5 (w.e.f. 10-5-1994); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
Rajasthan.—Same as that of Maharashtra, except that in the proviso, for the word ‘also’ at the end, word ‘even’ is used.
[Vide Rajasthan Act 13 of 1970, sec. 3 (w.e.f. 3-12-1970)].
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1. Subs. by Act 41 of 2005, sec. 8(i), for sub-section “(1) The State Government may, by notification in the Official Gazette, appoint 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 settlment of industrial disputes in force in the State or any Commisioner 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, 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.” (w.e.f. 9-11-2005).
2. Subs. by Act 53 of 1964, sec. 13, for “six months” (w.e.f. 1-2-1965).
3. Subs. by the Payment of Wages (Amendment) Act, 2005, sec. 8 (ii), for sub-section “(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 may be 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 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, the person responsible for the payment of the wages was unable, though of exercising reasonable diligence, to make prompt payment, or
(c) the failure of the employed person to apply for or accept payment.” (w.e.f. 9-11-2005).
4. Subs. by Act 53 of 1964, sec. 13, for sub-section (4) (w.e.f. 1-2-1965).
5. Susb. by Act 41 of 2005, sec. 8(iii), for “not exceeding fifty rupees” (w.e.f. 9-11-2005).
6. Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f. 9-11-2005).
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(1) Employed persons are said to belong to the same unpaid group if they are borne on the same establishment and if 1[deductions, have been made from their wages in contravention of this Act for the same cause and during the same wage-period or periods or if] their wages for the same wage-period or periods have remained unpaid after the day fixed by section 5.
(2) A single application may be presented under section 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case 2[every person on whose behalf such application is presented may be awarded maximum compensation to the extent specified in sub-section (3) of section 15].
(3) The authority may deal with any number of separate pending applications, presented under section 15 in respect of persons belonging to the same unpaid group, as a single application presented under sub-section (2) of this section, and the provisions of that sub-section shall apply accordingly.
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1. Ins. by Act 53 of 1964, sec. 14 (w.e.f. 1-2-1965).
2. Subs. by Act 53 of 1964, sec. 14, for certain words (w.e.f. 1-2-1965).
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(1) 1[An appeal against an order dismissing either wholly or in part an application made under sub-section (2) of section 15, or against a direction made under sub-section (3) or sub-section (4) of that section] may be preferred, within thirty days of the date on which 2[the order or direction] was made, in a Presidency-town 3[***] before the Court of Small Causes and elsewhere before the District Court—
(a) by the employer or other person responsible for the payment of wages under section 3, if the total sum directed to be paid by way of wages and compensation exceeds three hundred rupees 4[or such direction has the effect of imposing on the employer or the other person a financial liability exceeding one thousand rupees], or
5[(b) by an employed person or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf or any Inspector under this Act, or any other person permitted by the authority to make an application under sub-section (2) of section 15, if the total amount of wages claimed to have been withheld from the employed person exceeds twenty rupees or from the unpaid group to which the employed person belongs or belonged exceeds fifty rupees, or]
(c) by any person directed to pay a penalty under 6[sub-section (4)] of section 15.
7[(1A) No appeal under clause (a) of sub-section (1)] shall lie unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the direction appealed against.]
7[(3) Where an employer prefers an appeal under this section, the authority against whose decision the appeal has been preferred may, and if so directed by the court referred to in sub-section (1) shall, pending the decision of the appeal, withhold payment of any sum in deposit with it.
(4) The court referred to in sub-section (1) may, if it thinks fit, submit any question of law for the decision of the High Court and, if it so does, shall decide the question in conformity with such decision.]
State Amendments
Gujarat.—In section 17, in sub-section (1),—
(1) Same as that of Maharashtra (1).
[Vide Bombay Act 62 of 1953, sec. 6 (w.e.f. 1-6-1961)].
(2)(i) for clause (b), substitute the following namely:—
“(b) by an employed person, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or a representative union registered as such under the Bombay Industial Relations Act, 1946, or any Inspector under this Act, or any other person authorised by an authority to make an application under sub-section (2) of section 15, and in the case of death of the employed person, by his legal representative, as the case may be, if the total amount of wages claimed to have been withheld from the employed person, or from the unpaid group to which the employed person belonged, exceed fifty rupees, or”;
(ii) after the first proviso, add the following proviso, namely:—
“Provided further that, when the order or direction appealed against was made by any person who holds or has held office of or above the rank of a District Judge or the Judicial Member of the Industial Court constituted under the Bombay Industrial Relations Act, 1946, or the presiding officer of a Tribunal constituted under the Industrial Disputes Act, 1947, an appeal under this section shall lie to the High Court”.
[Vide Gujarat Act 26 of 1961, sec. 6 (w.e.f. 12-6-1961)].
Karnataka.—(1) In section 17,—
(1) in sub-section (2), after the words, brackets and figure “sub-section (4) of that section” the words, brackets, figures, and letter, “or any order made under sub-section (1) of section 17A” shall be inserted;
(2) after sub-section (4), the following sub-section shall be added, namely,—
“(5) the provisions of section 5 of the Limitation Act, 1963, shall be applicable to appeals unde this section”.
[Vide Karnataka Act 2 of 1977, sec. 7 (w.e.f. 1-12-1982)].
Madhya Pradesh.—In section 17,—
(1) in sub-section (1), for the words beginning with “in a Presidency town” and ending with “before the District Court” substitute the words “before the Industrial Court”;
(2) in clause (b) (which has now been substituted by Act 53 of 1964), after the words “by an employed person”, insert the words “or his legal representative or any Inspector under this Act”;
(3) after clause (c), insert the following proviso:—
Same as in Maharashtra (1);
(4) after sub-section (2), insert the following sub-section:—
“(3) The provisions of section 5 of the Indian Limitation Act, 1908* shall be applicable to appeals under this section”.
* Now see section 5 of the Limitation Act, 1963 [Vide Madhya Pradesh Act 11 of 1964, sec. 5 (w.e.f. 15-5-1964)].
Maharashtra.—In section 17, in sub-section (1),—
(1) Add the following proviso, namely:—
“Provided that no appeal by an employer or other person responsible for the payment of wages under section 3 under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited with it the amount payable under the order appealed against”.
[Vide Bombay Act 62 of 1953, sec. 6 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(2) Same as that of Gujarat (2).
[Vide Maharashtra Act 13 of 1961, sec. 7 (w.e.f. 4-3-1961)].
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1. Subs. by Act 68 of 1957, sec. 7, for “An appeal against a direction made under sub-section (3) or sub-section (4) of section 15” (w.e.f. 1-4-1958).
2. Subs. by Act 68 of 1957, sec. 7, for “the direction” (w.e.f. 1-4-1958).
3. The words “or in Rangoon” omitted by the A.O. 1937.
4. Ins. by Act 53 of 1964, sec. 15 (w.e.f. 1-2-1965).
5. Subs. by Act 53 of 1964, sec. 15, for clause (b) (w.e.f. 1-2-1965).
6. Subs. by Act 20 of 1937, sec. 2 and Sch. I, for “sub-section (5)”.
7. Ins. by Act 53 of 1964, sec. 15 (w.e.f. 1-2-1965).
8. Subs. by Act 68 of 1957, sec. 7, for sub-section (2) (w.e.f. 1-4-1958).
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(1) Where at any time after an application has been made under sub-section (2) of section 15 the authority, or where at any time after an appeal has been filed under section 17 by an employed person or 2[any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf or any Inspector under this Act or any other person permitted by the authority to make an application under sub-section (2) of section 15] the Court referred to in that section, is satisfied that the employer or other person responsible for the payment of wages under section 3 is likely to evade payment of any amount that may be directed to be paid under section 15 or section 17, the authority or the Court, as the case may be, except in cases where the authority or Court is of opinion that the ends of justice would be defeated by the delay, after giving the employer or other person an opportunity of being heard, may direct the attachment of so much of the property of the employer or other person responsible for the payment of wages as is, in the opinion of the authority or Court, sufficient to satisfy the amount which may be payable under the direction.
(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to attachment before judgment under that Code shall, so far as may be, apply to any order for attachment under sub-section (1).]
State Amendments
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 7 (w.e.f. 12-6-1961)].
Maharashtra.—In section 17A, for the words “any official of a registered trade Union authorised in writing to act on his behalf”, read the words “any other person or a representative union competent to present such appeal”.
[Vide Maharashtra Act 13 of 1961, sec. 8 (w.e.f. 4-3-1961)].
Section 17B
Gujarat.—Same as that of Maharashtra.
[Vide Bombay Act 70 of 1954, sec. 3 and Gujarat Act 26 of 1961, sec. 8 (w.e.f.
12-6-1961)].
Maharashtra.—In its application to the State of Bombay, after section 17A, the following new section shall be inserted, namely:—
“17B. Provisions of section 15A to apply to appeals preferred under section 17 with modification.—When an appeal is preferred under section 17 by a person making an application under section 15, the provisions of Section 15A shall mutatis mutandis apply, with the modification that such person, not being an Inspector, shall pay court-fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal.”
[Vide Maharashtra Act 13 of 1961, sec. 9 (w.e.f. 4-3-1961)].
Rajasthan.—Same as that of Maharashtra.
[Vide Rajasthan Act 13 of 1970, sec. 3 (w.e.f. 3-12-1970)].
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1. Ins. by Act 68 of 1957, sec. 8 (w.e.f. 1-4-1958).
2. Subs. by Act 53 of 1964, sec. 16, for certain words (w.e.f. 1-2-1965).
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Every authority appointed under sub-section (1) of section 15 shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of section 195 and of 1[Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].
State Amendments
Tamil Nadu.—After section 18, insert the following section, namely:—
“18A. Transfer of cases.—(1) The State Government may, either on their own motion or on an application made in this behalf, order the transfer of any matter arising out of any proceedings pending before an authority to such other authority for disposal. Such authority to whom the matter is so transferred may, subject to any direction in the order of transfer, proceed either de novo or from the stage at which it is so transferred.
(2) The State Government may, by general or special order, authorise any officer of the Labour Department not below the rank of Deputy Commissioner of Labour to exercise such of their powers specified in sub-section (1)”.
[Vide Tamil Nadu Act 38 of 1999, sec. 2 (w.e.f. 1-10-1999)].
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1. Subs. by Act 38 of 1982, sec. 10, for “Chapter XXV of the Code of Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 15-10-1982).
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[Rep. by the Payment of Wages (Amendment) Act, 1964 (53 of 1964), sec. 17 (w.e.f. 1-2-1965).]
(1) Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following sections, namely, 1[section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof, section 9, section 10 except sub-section (2) thereof, and sections 11 to 13], both inclusive, shall be punishable 2[with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees].
7, section 8 except sub-section (8) thereof, section 9, section 10 except sub-section (2) thereof, and sections 11 to 13], both inclusive, shall be punishable 2[with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees]."
(2) Whoever contravenes the provisions of section 4, 3[sub-section (4) of
section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable 4[with fine which may extend to three thousand seven hundred fifty rupees].
5[(2A) Whoever being required to nominate or designate a person under section 3 fails to do so, such person shall be punishable with fine which may extend to three thousand rupees.]
6[(3) Whoever being required under this Act to maintain any records or registers or to furnish any information or return—
(a) fails to maintain such register or record; or
(b) wilfully refuses or without lawful excuse neglects to furnish such information or return; or
(c) wilfully furnishes or causes to be furnished any information or return which he knows to be false; or
(d) refuses to answer or wilfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act, shall, for each such offence, be punishable with fine 7[with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees].
(4) Whoever—
(a) wilfully obstructs an Inspector in the discharge of his duties under this Act; or
(b) refuses or wilfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorised by or under this Act in relation to any railway, factory or 8[industrial or other establishment]; or
(c) wilfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or
(d) prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act, shall be punishable with fine 9[with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees].
(5) If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term 10[which shall not be less than one month but which may extend to six months and 11[with fine which shall not be less than three thousand seven hundred fifty rupees but which may extend to twenty two thousand five hundred rupees] or with both:
Provided that for the purpose of this sub-section, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offence which is being punished came to the knowledge of the Inspector.
(6) If any person fails or wilfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to 12[seven hundred fifty rupees] for each day for which such failure or neglect continues.]
Statement of Objects and Reasons [The Payment of Wages (Amendment) Act, 2005]
Strengthening compensation and penal provisions of the Act: The penal provisions of the Act have become almost insignificant due to passage of time as well as decrease in money value since these provisions were last amended in 1982. It is, therefore, proposed to make the penal provisions more stringent by enhancing the quantum of penalties by amending section 20 of the Act.
State Amendments
West Bengal.—In section 20, in sub-section (1),—
(a) for the words “two hundred rupees”, the words “five hundred rupees” shall be substituted, and
(b) for the words “one thousand rupees”, words “five thousand rupees” shall be substituted.
[Vide West Bengal Act 28 of 1993, sec. 4].
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1. Subs. by Act 53 of 1964, sec. 18, for “section 5 and sections 7 to 13” (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, sec. 9(a), for “with fine which shall not be less than two hundred rupees but which may extend to one thousand rupess” (w.e.f. 9-11-2005).
3. Subs. by Act 53 of 1964, sec. 18, for “section 6” (w.e.f. 1-2-1965).
4. Subs. by Act 41 of 2005, sec. 9(b), for “with fine which may extend to five hundred rupees (w.e.f. 9-11-2005).
5. Ins. by Act 41 of 2005, sec. 9(c) (w.e.f. 9-11-2005).
6. Ins. by Act 53 of 1964, sec. 18 (w.e.f 1-2-1965).
7. Subs. by Act 41 of 2005, sec. 9(d), for “with fine which shall not be less than two hundred rupees but which may extend to one thousand rupess” (w.e.f. 9-11-2005).
8. Subs. by Act 38 of 1982, sec. 11, for “industrial establishment” (w.e.f. 15-10-1982).
9. Subs. by Act 41 of 2005, sec. 9(e), for “with fine which shall not be less than two hundred rupees but which may extend to one thousand rupess” (w.e.f. 9-11-2005).
10. Subs. by Act 38 of 1982, sec. 11, for “which may extend to three months or with fine which may extend to one thousand rupees, or with both” (w.e.f. 15-10-1982).
11. Subs. by Act 41 of 2005, sec. 9(f), for “with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees” (w.e.f. 9-11-2005).
12. Subs. by Act 41 of 2005, sec. 9(g), for “one hundred rupees” (w.e.f. 9-11-2005).
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(1) No Court shall take cognizance of a complaint against any person for an offence under sub-section (1) of section 20 unless an application in respect of the facts constituting the offence has been presented under section 15 and has been granted wholly or in part and the authority empowered under the latter section or the Appellate Court granting such application has sanctioned the making of the complaint.
(2) Before sanctioning the making of a complaint against any person for an offence under sub-section (1) of section 20, the authority empowered under section 15 or the Appellate Court, as the case may be, shall give such person an opportunity of showing cause against the granting of such sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his default 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.
(3) No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rules made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.
1[(3A) No Court shall take cognizance of any offence punishable under sub-section (3) or sub-section (4) of section 20 except on a complaint made by or with the sanction of an Inspector under this Act.]
(4) In imposing any fine for an offence under sub-section (1) of section 20 the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 15.
State Amendments
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].
Karnataka.—In section 21,—
(1) in sub-section (1), for the words “and the authority empowered under the latter section or the appellate Court granting such application”, the words “by the authority or the appellate Court or the State Government or any officer authorised by it in his behalf” shall be substituted;
(2) in sub-section (2) for the words and figure “the authority empowered under section 15 or the appellate Court”, the words “the State Government or the officer authorised by it in this behalf” shall be substituted.
[Vide Karnataka Act 2 of 1977, sec. 8 (w.e.f. 1-2-1982)].
Madhya Pradesh.—In section 21, in sub-section (2), in clauses (a) and (c), after the words “employed person” insert the words “or his legal representative”.
[Vide Madhya Pradesh Act 11 of 1964, sec. 7 (w.e.f. 15-5-1964)].
Maharashtra.—In section 21,—
(a) in sub-section (1), for the words and figure “and the authority empowered under section 15 or the appellate Court granting such application”, substitute the words “by the authoity or the appellate Court and the State Government or any officer authorised by it in this behalf”;
(b) in sub-section (2)—
(i) for the words and figure “the authority empowered under section 15 or the appellate Court”, substitute the words “the State Government or the office authorised by it in this behalf”;
(ii) for the words “the authority or Court”, substitute the words “the State Government or the authorised officer; and”
[Vide Bombay Act 62 of 1953, sec. 8 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
(iii) in clauses (a) and (c), after the words “employed person”, in both the places where they occur, insert the words “or his legal representative”.
[Vide Bombay Act 48 of 1955, sec. 5 (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].
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1. Ins. by Act 53 of 1964, sec. 19 (w.e.f. 1-2-1965).
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No Court shall entertain any suit for the recovery of wages or of any deduction from wages insofar as the sum so claimed—
(a) forms the subject of an application under section 15 which has been presented by the plaintiff and which is pending before the authority appointed under that section or of an appeal under section 17; or
(b) has formed the subject of a direction under section 15 in favour of the plaintiff; or
(c) has been adjudged, in any proceeding under section 15, not to be owed to the plaintiff; or
(d) could have been recovered by an application under section 15.
No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government for anything which is in good faith done or intended to be done under this Act.]
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1. Ins. by Act 53 of 1964, sec. 20 (w.e.f. 1-2-1965).
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Any contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.
The appropriate Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be also exercisable—
(a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification;
(b) where the appropriate Government is a State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.]
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1. Subs. by Act 41 of 2005, sec. 10, for section “24. Application of Act to railways, air transport services, mines and oil-fields.—The powers by this Act conferred upon the State Government shall, in relation to railways, air transport services, mines and oil-fields; be powers of the Central Government” (w.e.f. 9-11-2005).
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The person responsible for the payment of wages to persons 1[employed in a factory or an industrial or other establishment] shall cause to be 2[displayed in such factory or industrial or other establishment] a notice containing such abstracts of this Act and of the rules made thereunder in English and in the language of the majority of the persons employed 3[in the factory, or industrial or other establishment], as may be prescribed.
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1. Subs. by Act 38 of 1982, sec. 12, for “employed in a factory” (w.e.f. 15-10-1982).
2. Subs. by Act 38 of 1982, sec. 12, for “displayed in such factory” (w.e.f. 15-10-1982).
3. Subs. by Act 38 of 1982, sec. 12, for “in the factory” (w.e.f. 15-10-1982).
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(1) Subject to the other provisions of the Act, all amounts payable to an employed person as wages shall, if such amounts could not or cannot be paid on account of his death before payment or on account of his whereabouts not being known,—
(a) be paid to the person nominated by him in this behalf in accordance with the rules made under this Act; or
(b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the prescribed authority who shall deal with the amounts so deposited in such manner as may be prescribed.
(2) Where, in accordance with the provisions of sub-section (1), all amounts payable to an employed person as wages—
(a) are paid by the employer to the person nominated by the employed person, or
(b) are deposited by the employer with the prescribed authority, or the employer shall be discharged of his liability to pay those wages.]
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1. Ins. by Act 38 of 1982, sec. 13 (w.e.f. 1-3-1994).
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(1) 1[2[The appropriate Government] may make rules to regulate the procedure to be followed by the authorities and Courts referred to in sections 15 and 17.
(2) 1[2[The appropriate Government] may, 3[***] by notification in the Official Gazette, make rules for the purpose of carrying into effect the provisions of this Act.
(3) In particular and without prejudice to the generality of the foregoing power, rules made under sub-section (2) may—
(a) require the maintenance of such records, registers, returns and notices as are necessary for the enforcement of the Act 4[prescribe the form thereof and the particulars to be entered in such registers or records];
4[prescribe the form thereof and the particulars to be entered in such registers or records];"
(b) require the display in a conspicuous place or premises where employment is carried on of notices specifying rates of wages payable to persons employed on such premises;
(c) provide for the regular inspection of the weights, measures and weighing machines used by employers in checking or ascertaining the wages of persons employed by them;
(d) prescribe the manner of giving notice of the days on which wages will be paid;
(e) prescribe the authority competent to approve under sub-section (1) of section 8 acts and omissions in respect of which fines may be imposed;
(f) prescribe the procedure for the imposition of fines under section 8 and for the making of the deductions referred to in section 10;
(g) prescribe the conditions subject to which deductions may be made under the proviso to sub-section (2) of section 9;
(h) prescribe the authority competent to approve the purposes on which the proceeds of fines shall be expended;
(i) prescribe the extent to which advances may be made and the instalments by which they may be recovered with reference to clause (b) of section 12;
5[(ia) prescribe the extent to which loans may be granted and the rate of interest payable thereon with reference to section 12A;
(ib) prescribe the powers of Inspectors for the purposes of this Act;]
(j) regulate the scales of costs which may be allowed in proceedings under this Act;
(k) prescribe the amount of court-fees payable in respect of any proceedings under this Act; 6[***]
(l) prescribe the abstracts to be contained in the notices required by section 25; 7[***]
8[(la) prescribe the form and manner in which nominations may be made for the purposes of sub-section (1) of section 25A, the cancellation or variation of any such nomination, or the making of any fresh nomination in the event of the nominee predeceasing the person making nomination, and other matters connected with such nominations;
(lb) specify the authority with whom amounts required to be deposited under clause (b) of sub-section (1) of section 25A shall be deposited, and the manner in which such authority shall deal with the amounts deposited with it under that clause;]
9[(m) provide for any other matter which is to be or may be prescribed.]
(4) In making any rule under this section the State Government may provide that a contravention of the rule shall be punishable with fine 10[which shall not be less than seven hundred fifty rupees but which may extend to one thousand and five hundred rupees].
(5) All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under clause (3) of section 23 of the General Clauses Act, 1897 (10 of 1897), shall not be less than three months from the date on which the draft of the proposed rules was published.
9[(6) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in 11[two or more successive sessions,] and if, before the expiry of the session 12[immediately following the session or the successive sessions aforesaid,] both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]
State Amendments
Bihar.—In section 26, after clause (d), insert the following clause namely:—
“(dd) prescribe the manner in which the excess amount of the bonus shall be paid or invested under section 6”.
[Vide Bihar Act 4 of 1963, sec. 3 (w.e.f. 29-3-1963)].
Gujarat.—Same as that of Maharashtra.
[Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].
Karnataka.—In section 26, in sub-section (3), in clause (k), for the words “court-fees”, the words “ad valorem or fixed court-fees” shall be substituted.
[Vide Karnataka Act 2 of 1977, sec. 9 (w.e.f. 1-2-1982)].
Maharashtra.—In section 26, in sub-section (3),—
(1) after clause (d), insert the following clause, namely:—
“(da) prescribe the manner in which the excess amount of the bonus shall be paid or invested under section 6”;
(2) in clause (k),—
(a) for the word “court-fees” substitute the words “ad valorem or fixed court-fees”;
(b) the word “and” shall be deleted.
[Vide Bombay Act 62 of 1953, sec. 9 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f 4-3-1961)].
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1. Subs. by the A.O. 1937, for “Governor-General in Council”.
2. Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f. 9-11-2005).
3. The words “subject to the control of the Governor-General in Council” omitted by the A.O. 1937.
4. Subs. by Act 53 of 1964, sec. 22, for “and prescribe the form thereof” (w.e.f. 1-2-1965).
5. Ins. by Act 53 of 1964, sec. 22 (w.e.f. 1-2-1965).
6. The word “and” omitted by Act 53 of 1964, sec. 22 (w.e.f. 1-2-1965).
7. The word “and” ins. by Act 53 of 1964. sec. 22 (w.e.f. 1-2-1965) and omitted by Act 38 of 1982, sec. 14 (w.e.f. 15-10-1982).
8. Ins. by Act 38 of 1982, sec. 14 (w.e.f. 15-10-1982).
9. Ins. by Act 53 of 1964, sec. 22 (w.e.f. 1-2-1965).
10. Subs. by Act 41 of 2005, sec. 11(a), for “which may extend to two hundred rupees” (w.e.f. 9-11-2005).
11. Subs. by Act 38 of 1982, sec. 14, for “two successive sessions” (w.e.f. 15-10-1982).
12. Subs. by Act 38 of 1982, sec. 14, for “in which it is so laid or session immediately following” (w.e.f. 15-10-1982).
13. Ins. by Act 41 of 2005, sec. 11(b) (w.e.f. 9-11-2005).
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