Download VTU MBA 3rd Sem IR 6 Payment of Wages -Important Notes

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THE PAYMENT OF WAGES ACT

OBJECT OF THE ACT

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• To regulate the payment of wages to certain classes of employed persons. Two fold:-
• First the date of payment of wages and
• Secondly the deductions from wages which may be made otherwise.

APPLICABILITY OF THE ACT

• Persons employed in:-

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• Any factory (a saw mill, ginning factory etc as defined in Factories Act, 1948).
• Tramway service or motor transport service carrying passengers or good or both by hire or reward.
• Air transport service Dock, Wharf or Jetty mechanically propelled
• Mine, quarry or oil-field plantation
• Workshop or other establishment etc.

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WAGE

• Wage includes any remuneration:-
• Payable under any award or settlement between the parties or order of a Court;
• Over time work or holiday or any leave period;
• Any additional remuneration under the terms of employment.

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Wage does not includes any bonus, pension or provident fund, travelling allowance and etc.

WAGES TO BE PAID IN CURRENT COINS OR CURRENCY NOTES

1. All wages shall be paid in current coins or currency notes or in both.
2. After obtaining the authorization, either in cheque or by crediting the wages in employees account {Section 6}
   Andhra Pradesh State Amendment: "Provided that the State Government may, by notification in the Andhra Pradesh Gazette, specify the area or establishments , the employers of which shall pay the persons employed therein, the wages by cheque or by crediting the wages into their bank account"-[Vide Andhra Pradesh Act 1 of 1982 (w.e.f 7-10-1982).

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TIME OF PAYMENT OF WAGES

• The wages of every person employed is paid before the expiry of the 7th day of the following month. When more than 1000 persons are employed shall be paid before the expiry of the 10th day of the following month

Deduction [sec 7 to 13]:

Sec 7(1) says that 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.

Sec 7: Authorized Deductions from Wages

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• General Rule - The wages of an employee shall be paid to him without deductions of any kind except authorized by or under this Act.
• Fines
• Deductions for absence from duty
• Deductions for damage to or loss of goods
• Deductions for house-accommodation supplied by the employer

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Fines [sec 8]:

1. No fine shall be imposed on any employed person in respect of such acts and omissions on the part of employer, with the previous approval of the Government or of the prescribed authority specified by notice under sub-section
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), the prescribed place or places.

Cont....:

• 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.

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• 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 [three per cent.] of the wages payable to him in respect of that wage-period. No fine shall be imposed on any employed person who is under the age of fifteen years

Sec 9: Deductions for absence from duty

1. Such absence being for the whole or any part of the period during which he is so required to work.
2. If 10 or more employed persons remain absent
such deduction may not exceed his

Sec10: Deductions for damage or loss

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• Such deduction shall not exceed the amount of the damage or loss caused to the employer
• Employee is given an opportunity of
• All such deduction shall be recorded

Sec 12: Deductions for Recovery of Advances

1. Recovery of advance given before employment began shall be made from the first payment of wages

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2. Recovery of an advance given during employment began shall be subject to such rules as the Appropriate Government may impose

• Sec 13. Deductions for payment to Co-operative Societies