1. Short title extent
commencement and application
(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.
2. Definitions
In this
Act unless there is anything repugnant in the subject or context -
(i)
"employed person" includes the legal representative of a deceased
employed person;
(ia)
"employer" includes the legal representative of a deceased employer;
(ib)
"factory" means a factory as defined in clause (m) of section 2 of
the Factories Act 1948 (63 of 1948) and includes any place to which
the provisions of that Act have been applied under sub-section (1)
of section 85 thereof;
(ii)
"industrial or other establishment" means any -
(a)
tramway service or motor transport service engaged in carrying
passengers or goods or both by road for hire or reward;
(aa) air
transport service other than such service belonging to or
exclusively employed in the military naval or air forces of the
Union or the Civil Aviation Department of the Government of India;
(b) dock
wharf or jetty;
(c)
inland vessel mechanically propelled;
(d) mine
quarry or oil-field;
(e)
plantation;
(f)
workshop or other establishment in which articles are produced
adapted or manufactured with a view to their use transport or sale;
(g)
establishment in which any work relating to the construction
development or maintenance of buildings roads bridges or canals or
relating to operations connected with navigation irrigation or to
the supply of water or relating to the generation transmission and
distribution of electricity or any other form of power is being
carried on;
(h) any
other establishment or class of establishments which the Central
Government or a State Government may having regard to the nature
thereof the need for protection of persons employed therein and
other relevant circumstances specify by notification in the Official
Gazette.
(iia)
"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);
(iii)
"plantation" has the meaning assigned to it in clause (f) of section
2 of the Plantations Labour Act 1951 (69 of 1951);
(iv)
"prescribed" means prescribed by rules made under this Act;
(v)
"railway administration" has the meaning assigned to it in clause
(6) of section 3 of the Indian Railways Act 1890 (9 of 1890); and
(vi)
"wages" means all remuneration (whether by way of salary allowances
or otherwise) expressed in terms of money or capable of being so
expressed which would if the terms of employment express or implied
were fulfilled by payable to a person employed in respect of his
employment or of work done in such employment and includes -
(a) any
remuneration payable under any award or settlement between the
parties or order of a court;
(b) any
remuneration to which the person employed is entitled in respect of
overtime work or holidays or any leave period;
(c) any
additional remuneration payable under the terms of employment
(whether called a bonus or by any other name);
(d) any
sum which by reason of the termination of employment of the person
employed is payable under any law contract or instrument which
provides for the payment of such sum whether with or without
deductions but does not provide for the time within which the
payment is to be made;
(e) any
sum to which the person employed is entitled under any scheme framed
under any law for the time being in force, but does not include -
(1) any
bonus (whether under a scheme of profit sharing or otherwise) which
does not form part of the remuneration payable under the terms of
employment or which is not payable under any award or settlement
between the parties or order of a court;
(2) the
value of any house-accommodation or of the supply of light water
medical attendance or other amenity or of any service excluded from
the computation of wages by a general or special order of the State
Government;
(3) any
contribution paid by the employer to any pension or provident fund
and the interest which may have accrued thereon;
(4) any
travelling allowance or the value of any travelling concession;
(5) any
sum paid to the employed person to defray special expenses entailed
on him by the nature of his employment; or
(6) any
gratuity payable on the termination of employment in cases other
than those specified in sub-clause (d).
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.
4. Fixation of wage-periods
(1)
Every person responsible for the payment of wages under section 3
shall fix periods (in this Act referred to as wage-periods) in
respect of which such wages shall be payable.
(2) No
wage-period shall exceed one month.
5. Time of payment of wages
(1) The
wages of every person employed upon or in -
(a) any
railway factory or 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 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 :
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 :
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
State 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) 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 wages of any such
persons or class of such persons :
Provided
that in the case of persons employed as daily-rated workers as
aforesaid no such order shall be except in consultation with the
Central Government.
(4) Save
as otherwise provided in sub-section (2) all payments of wages shall
be made on a working day.
6. Wages to be paid in current
coin or currency notes
All
wages shall be in current coin or currency notes or in both :
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.
7. Deductions which may be made
from wages
(1)
Notwithstanding the provisions of sub-section (2) of section 47 of
the Indian Railways Act 1890 (9 of 1890) the wages of an employed
person shall be paid to him without deductions of any kind except
those authorised by or under this Act.
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.
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;
(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 services supplied by the employer as
the State Government or any officer specified by it in this behalf
may by general or special order authorise.
Explanation : The word "services" in this clause does not
include the supply of tools and raw materials required for the
purposes of employment;
(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 1952 (19 of
1952) applies or any recognised provident funds as defined in
section 58A of the Indian Income Tax Act 1922 (11 of 1922) or any
provident fund approved in this behalf by the State Government
during the continuance of such approval;
(j)
deductions for payments to co-operative societies approved by the
State Government or any officer specified by it in this behalf or to
a scheme of insurance maintained by the Indian Post Office and
(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 Act of India established under the
Life Insurance Corporation 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 Saving Bank in furtherance of
any savings scheme of any such government.
(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 Union
act 1926 (16 of 1926) for the welfare of the employed persons or the
members of their families or both and approved by the State
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 Union Act 1926 (16 of
1926);
(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;
(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;
(q)
deductions for contributions to any insurance scheme framed by the
Central Government for the benefit of its employees.
(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 the Indian Railways Act 1890 (9 of
1890).
Comment:
The list given in this section is exhaustive and no other deduction
from the wages is permissible.
AIR 1956 Madras 79
8. Fines
(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 the State 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 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 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 sixty 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 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.
9. Deductions for absence from
duty
(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 in a larger 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 employments he was required to work
:
Provided
that subject to any rules made in this behalf by the State
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.
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 refusesin
pursuance of a stay-in strike or for any other cause which is not
reasonable in the circumstances to carry out his work.
10. Deductions for damage or loss
(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.
11. Deductions for services
rendered
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
deduction under the said clause (e) shall be subject to such
conditions as the State Government may impose.
12. Deductions for recovery of
advances
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;
(aa)
recovery of an advance of money given after employment began shall
be subject to such conditions as the State Government may impose;
(b)
recovery of advances of wages not already earned shall be subject to
any rules made by the State Government regulating the extent to
which such advances may be given and the instalments by which they
may be recovered.
Deductions for recovery of loans granted under clause
(fff) of sub-section (2) of section 7 shall be subject to any rules
made by the State Government regulating the extent to which such
loans may be granted and the rate of interest payable thereon.
13. Deductions for payments to co-operative societies and insurance schemes
Deductions under clause (j) and clause (k) of sub-section
(2) of section 7 shall be subject to such conditions as the State
Government may impose.
(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.
14. Inspectors
(1) An
Inspector of Factories appointed under 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) The
State 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) The
State 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 industrial or other establishments in
respect of which they shall exercise their functions.
(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 industrial or other establishment
at any reasonable time for the purpose of carrying out the objects
of this Act;
(c)
supervise the payment of wages to persons employed upon any railway
or in any factory or industrial or other establishment;
(d)
require by a written order the production at such place as may be
prescribed of any register maintained in pursuance of this Act and
taken 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 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 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).
Every
employer shall afford an Inspector all reasonable facilities for
making any entry inspection supervision examination or inquiry under
this Act.
15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims
(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
settlement of industrial disputes in force in the State or any
Commissioner 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.
(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 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 twelve months when the applicant satisfies the authority that he
had sufficient cause for not making the application within such
period.
(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 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.
(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 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
(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 not exceeding fifty rupees be paid to the State 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.
16. Single application in respect
of claims from unpaid group
(1)
Employed persons are said to belong to the same unpaid group if they
are borne on the same establishment and if 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 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.
17. Appeal
(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 the
order or direction was made in a Presidency-town 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 or such direction has
the effect of imposing on the employer or the other person a
financial liability exceeding one thousand rupees or
(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 with held 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 sub-section (4) of
section 15.
(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.
(2) Save
as provided in sub-section (1) any order dismissing either wholly or
in part an application made under sub-section (2) of section 15 or a
direction made under sub-section (3) or sub-section (4) of that
section shall be final.
(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.
17A. Conditional attachment of
property of employer or other person responsible
for payment of wages
(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 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).
18. Powers of authorities
appointed under section 15
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 Chapter XXVI of the
Code of Criminal Procedure 1973 (2 of 1974).
19. Power to recover from employer in certain cases [Repealed by Act 53 of 1964]
20. Penalty for offences under
the Act
(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 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 section 11 to 13 both inclusive
shall be punishable with fine which shall not be less than two
hundred rupees but which may extend to one thousand rupees.
(2)
Whoever contravenes the provisions of section 4 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 with fine which may
extend to five hundred rupees.
(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 which shall not be
less than two hundred rupees but which may extend to one thousand
rupees.
(4)
Whoever -
(a)
wilfully obstructs an Inspector in the discharge of his duties under
this Act; or
(b)
refuse 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 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 which shall not be less than two hundred rupees
but which may extend to one thousand rupees.
(5) If
any person who has been convicted of any office 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 which shall not be less than one month
but which may extend to six months and with fine which shall not be
less than five hundred rupees but which may extend to three thousand
rupees.
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 one hundred rupees for each day for which such failure or neglect
continues.
21. Procedure in trial of
offences
(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 rule made under section 26
except on a complaint made by or with the sanction of an Inspector
under this Act.
(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 affiance 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.
22. Bar of suits
No Court
shall entertain any suit for the recovery of wages or of any
deduction from wages in so far 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 owned 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.
23. Contracting out
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.
24. Application of Act to
railways air transport services mines and oilfields
The
powers by this Act conferred upon the State Government shall, in
relation to railways air transport services mines and oilfields be
powers of the Central Government.
25. Display by notice of
abstracts of the Act
The
person responsible for the payment of wages of persons employed in a
factory or an industrial or other establishment shall cause to be
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 in the factory, or industrial or other
establishment as may be prescribed.
(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 employer person;
or
(b) are
deposited by the employer with the prescribed authority, the
employer shall be discharged of his liability to pay those wages.
26. Rule-making power
(1) The
State Government may make rules to regulate the procedure to be
followed by the authorities and courts referred to in sections 15
and 17.
(2) The
State Government may 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 notice
as are necessary for the enforcement of the Act prescribe the form
thereof and the particulars to be entered in such registers or
records;
(b)
require the display in a conspicuous place on premises where
employment is carried on of notices specifying rates of wages
payable to persons employed on such premises;
(c)
Provide for the regulate 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 making of the deductions referred to in section 10;
(g)
prescribe the conditions subject to which deductions may be made
under the proviso the 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;
(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 allowed in proceedings under
this Act;
(k)
prescribe the amount of court-fees payable in respect of any
proceedings under this Act
(l)
prescribe the abstracts to be contained in the notices required by
section 25;
(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;
(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 which
may extend to two 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.
(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 two or more successive
sessions and if before the expiry of the session 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.