THE PAYMENT OF WAGES ACT, 1936
Payment of Wages Act regulates and governs payment of wages. The Act provides for responsibility of payment of wages, disbursement of wages, period of wages, fixation of wage period, time and mode of payment of wages, wage cycle etc.
The Act applies:
- To every establishment covered by the Maharashtra Shops and Establishments Act, 1948
- To Factories, Railways etc.
- Industrial establishment mentioned in Section 2(ii)(a) to (g)
- By notification under Section 2(ii)(h)
The Act does not apply to employees drawing wages more than Rs 18000 per month [Section 1(6)]
COVERAGE OF EMPLOYEES
Employees drawing wages up to Rs 6500 per month are covered under the Act as amended with effect from 6th September 2005
TIME OF PAYMENT OF WAGES
- An employer shall not delay unduly the payment of wages to his employees.
- In case of an establishment, employing less one thousand persons, the wages are to paid before the expiry of seventh day
- In any other case, before the expiry of tenth day after the last day of the wage period (Section 5)
PAYMENT OF WAGES TO AN EMPLOYEE WHOSE SERVICES WERE TERNMINATED
Where the services of an employee are terminated by the employer, his wages become payable before the expiry of the second working day from the day on which the employment is terminated
MANNER OF PAYMENT OF WAGES
- The Act stipulates that all wages are to be paid in current coins or coin or currency notes or in both but not by way of cheque or by crediting to the account of the employee (Section 6)
- Further, all payments of wages are to be made on a working day [Section 5(4)]
- Every employer shall fix wage period
- Every employer shall ensure that wages are paid within the periods prescribed under the Act
- He shall ensure that wages are paid in current coin or current notes
- He shall pay wages on working days
- He shall extend all co-operation necessary to the Inspectors for conducting enquiry and afford all facilities to him for making entry, inspection, supervision, examination or enquiry under this Act
- He shall display a notice containing an abstract of the Act and the rules in English and in the language of majority of employees
- Every employer shall maintain records and registers in the prescribed form containing particulars of persons employed, work performed, wages paid deductions effected and receipts given by them
- He shall preserve the records fot s period of three years
On contravention of Section 5 (except Subsection .4), Section 7, Section 8 (except Subsection 8), Section 9, Section 10 (except Subsection 2) and Section 11 to Section 13
Fine not less than Rs. 1000, which may extend to Rs. 5000. On subsequent conviction fine not less than Rs. 5000, may extend to Rs. 10000. On contravention Section 4, 5(4), 6, 8 (8), 10(2) or Section 25 fine not less than Rs. 1000. – may extend to Rs. 5000. On subsequent on conviction fine not less.
- For failing to maintain registers or records; or
- Willfully refusing or without lawful excuse neglecting to furnish information or return; or
- Willfully furnishing or causing to be furnished any information or return which he knows to be false or
- Refusing to answer or willfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act.
- Fine which shall not be less than Rs. 1000 but may extend to Rs. 5000 – On record conviction fine not less than Rs. 5000, may extend to Rs. 10000
- For second or subsequent conviction, fine not less than Rs. 5000 but may extend to Rs. 10000.
- Willfully obstructing an Inspector in the discharge of his duties under this Act; or
- Refusing or willfully neglecting to afford an Inspector any reasonable facility for making any entry, inspection etc.
- Willfully refusing to produce on the demand of an inspector any register or other document kept in pursuance of this Act; or preventing any person for appearance etc.
Fine not less than Rs.1000 extendable upto Rs.5000 – On subsequent conviction fine not less than Rs.5000 – may extent to Rs.10,000
- On conviction for any offence and again guilty of Contravention of same provision.
- Failing or neglecting to pay wages to any employee
- Imprisonment not less than one month extendable upto six months and fine not less than Rs.2000 extendable upto Rs.15000.
- Additional fine upto Rs. 100 for each day
SCOPE OF WORK
- Obtaining shops & establishments registration & License.
- Renewal of License as per schedule date.
- Representing with Labour Department authorities on the behalf of the company on case-to-case basis with prior approval of the signing authority.
- Preparing and submitting the half yearly and annual returns.
- To maintain records and all registers in relation to the respective Act.
- Verifying proper compliances of branches.
- To keep abreast and update the organization about the recent changes of the Act.
- To act as a proper communication link between the organization and statutory authorities.