LexThe PAYMENT OF WAGES ACT, 1936
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THE PAYMENT OF WAGES ACT, 1936
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ARRANGEMENT OF SECTIONS
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SECTIONS
1. Short title, extent, commencement and application.
2. Definitions.
3. Responsibility for payment of wages.
4. Fixation of wage-periods.
5. Time of payment of wages.
6. Wages to be paid in current coin or currency notes or by cheque or crediting in bank account.
7. Deductions which may be made from wages.
8. Fines.
9. Deductions for absence from duty.
10. Deductions for damage or loss.
11. Deductions for services rendered.
12. Deductions for recovery of advances.
12A. Deductions for recovery of loans.
13. Deductions for payments to co-operative societies and insurance schemes.
13A. Maintenance of registers and records.
14. Inspectors.
14A. Facilities to be afforded to Inspectors.
15. Claims arising out of deductions from wages or delay in payment of wages and penalty for
malicious or vexatious claims.
16. Single application in respect of claims from unpaid group.
17. Appeal.
17A. Conditional attachment of property of employer or other person responsible for payment of
wages.
18. Powers of authorities appointed under section 15.
19. [Omitted].
20. Penalty for offences under the Act.
21. Procedure in trial of offences.
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SECTIONS
22. Bar of Suits.
22A. Protection of action taken in good faith.
23. Contracting out.
24. Delegation of powers.
25. Display by notice of abstracts of the Act.
25A. Payment of undisbursed wages in cases of death of employed person.
26. Rule-making power.
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THE PAYMENT OF WAGES ACT, 1936
ACT NO. 4 OF 19361
[23rd April, 1936.]
An Act to regulate the payment of wages of certain classes to 2[employed persons].
WHEREAS it is expedient to regulate the payment of wages to certain classes of 2[employed persons].
It is hereby enacted as follows:—
1. Short title, extent, commencement and application.—(1) This Act may be called the Payment of
Wages Act, 1936.
3[(2) It extends to the whole of India 4***].
(3) It shall come into force on such date 5 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 6[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 7[, and
to persons employed in an industrial or other establishment specified in sub -clauses (a) to ( g) of clause
(ii) of section 2].
(5) 8[Appropriate Government] may, after giving three months‟ notice of its intention of so doing, by
notification in the Official Gazette, extend the provi sions of 9[this Act] or any of them to the payment of
wages to any class of persons employed in 10[any establishment or class of establishments specified by
11[appropriate Government] under sub-clause (h) of clause (ii) of section 2]:
12[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.]
13[(6) This Act applies to wages payable to an employed person in respect of a wage period if such
wages for that wage period do not exceed 14[twenty four thousand rupees] per month or such other higher
sum which, on the basis of figures of the Consumer Expenditure Survey published by the National
Sample Survey Organisation, the Central Government may, after every five years, by notification in the
Official Gazette, specify.]
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
15[(i) “appropriate Government” means, in relation to railways, air transport services, mines and
oilfields, the Central Government and, in relation to all other cases, the State Government;]
1. The Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962, s. 3 and the Schedule to Dadra and Nagar Haveli by
Reg. 6 of 1963, s. 2 and the First Schedule to Pondicherry by Reg. 7 of 1963, s. 3 an d the First Schedule and to Lakshadweep
by Reg. 8 of 1965, s. 3 and the Schedule.
2. Subs. by Act 38 of 1982, s. 2 for “persons employed in industry” (w.e.f. 15-10-1982).
3. Subs. by the A.O. 1950, for sub-section (2).
4. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
5. 28th March 1937, see Gazette of India, 1937, Pt. I, pg. 626.
6. Subs. by Act 38 of 1982, s. 3, for “factory and to persons” (w.e.f. 15-10-1982).
7. Ins. by s. 3, ibid. (w.e.f. 15-10-1982).
8. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
9. Subs. by Act 68 of 1957, s. 2, for “the Act” (w.e.f. 1-4-1958.)
10. Subs. by Act 38 of 1982, s. 3, for “any industrial establishment or in any class or group of industrial establishments”
(w.e.f. 15-10-1982).
11. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).
12. Subs. by Act 38 of 1982, s. 3, for the proviso (w.e.f. 15-10-1982).
13. Subs. by Act 41 of 2005, s. 2, for sub-section (6) (w.e.f. 9-11-2005).
14. Subs. by S.O. 2806 (E), dated 28-8-2017, for “eighteen thousand rupees”, see Gazette of India, Extraordinary, Part II, s. 3(ii).
15. Ins. by s. 4, ibid. (w.e.f. 9-11-2005).
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1[2[(ia)] “employed person” includes the legal representative of a deceased employed person;
2[(ib)] “employer” includes the legal representative of a deceased employer;
2[(ic)] “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) 3[“industrial or other establishment” means] any—
4[(a) tramway service, or motor transport service engaged in carrying passenger 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;
5[(c) inland vessel, mechanically propelled;]
(d) mine, quarry or oilfield;
(e) plantation;
(f) workshop or other establishment in which articles are produced, adapted or manufactured,
with a view to their use, transport or sale;
6 [(g) establishment in which any work relating to the construction, development or
maintenance of buildings, roads, bridges or canals, or relating to operation connected with
navigation, irrigation, development or maintenance of buildings, roads, bri dges or mission and
distribution of electricity or any other form of power is being carried on;]
7[(h) any other establishment or class of establishment which 8[appropriate 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;]
9[(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);]
10[(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;
11[(v) “railway administration” has the meaning assigned to it in claus e (32) of section 2 of the
Railways Act, 1989 (24 of 1989);]
1. Subs. by Act 53 of 1964, s. 3, for clause (i) (w.e.f. 1-2-1965).
2. Clauses (i), (ia) and (ib) renumbered as clauses (ia), (ib) and (ic) thereof by Act 41 of 2005, s. 4 (w.e.f. 9-11-2005).
3. Subs. by Act 38 of 1982, s. 4, for „ “industrial establishment” means‟ (w.e.f. 15-10-1982).
4. Subs. by Act 53 of 1964, s. 3, for sub-clause (a) (w.e.f. 1-2-1965).
5. Subs. by Act 68 of 1957, s. 3, for item (c) (w.e.f. 1-4-1958.)
6. Ins. by s. 3, ibid. (w.e.f. 1-4-1958.)
7. Ins. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).
8. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).
9. Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).
10. Subs. by s. 3, ibid., for clause (iii) (w.e.f. 1-2-1965).
11. Subs. by Act 41 of 2005, s. 4, for clause (v) (w.e.f. 9-11-2005).
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1[(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 ful filled, be payable to a person employed in respe ct 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 2[appropriate 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[3. Responsibility for payment of wages.—(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 establishments;
(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;
1. Subs. by Act 68 of 1957, s. 3, for clause (vi) (w.e.f. 1-4-1958.)
2. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
3. Subs. by s. 5, ibid., for section 3 (w.e.f. 9-11-2005).
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(d) in the case of contractor, a person designated by such contractor wh o 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 c ase the contractor or the
person designated by the employer fails to make 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 1[industrial or other establishment] upon or in which less than one
thousand persons are employed, shall be paid before 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 workin g 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) 3[Appropriate Government] may, by general or special order, exempt, to such extent and subject
to such conditions as may be specifi ed in the order, the person responsible for the payment of wages to
persons employed upon any railway (otherwise than in a factory) 4[or to persons employed as daily -rated
workers in the Public Works Department of 5[appropriate Government]] from the operation of this section
in respect of the wages of any such persons or class of such persons:
4[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.
1. Subs. by Act 38 of 1982, s. 6, for “industrial establishment” (w.e.f. 15-10-1982).
2. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
3. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
4. Ins. by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).
6. Subs. by Act 53 of 1964, s. 5, for “All payments” (w.e.f. 1-2-1965).
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1[6. Wages to be paid in current coin or currency notes or by cheque or crediting in bank
account.— All wages shall be paid in current coin or currency notes or by cheque or by crediting the
wages in the bank account of the employee:
Provided that the appropriate Government may, by notification in the Official Gazette, specify the
industrial or other establishment, the employer of which shall pay to every person employed in such
industrial or other establishment, the wages only by cheque or by crediting the wages in his bank
account.]
7. Deductions which may be made from wages .—(1) Notwithstanding the provisions of 2[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.
3[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.
4[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 5[appropriate 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 emp loyed 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;
6[(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 subsidizing
house-accommodation which may be specified in this behal f by 5[appropriate Government] by
notification in the Official Gazette;]
(e) deductions for such amenities and services supplied by the employer as the 7*** 5[appropriate
Government] 8 [or any officer specified by it in this behalf] may, by gener al or special order,
authorise;
Explanation—The word “services” in 9[this clause] does not include the supply of tools and raw
materials required for the purposes of employment;]
1. Subs. by Act 1 of 2017, s. 2, for section 6 (w.e.f. 28-12-2016).
2. Subs. by Act 41 of 2005, s. 6, for “sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)” (w.e.f. 9-11-2005).
3. Explanation renumbered as Explanation I thereof by Act 68 of 1957, s. 5 (w.e.f. 1-4-1958).
4. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).
5. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
6. Subs. by Act 68 of 1957, s. 5, for clause (d) (w.e.f. 1-4-1958).
7. The words “Governor-General in Council or” omitted by the A.O. 1937.
8. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
9. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for “this sub-clause” (w.e.f. 20-12-1974).
8
1[(f) deductions for recovery of advances of whatever nature (including advances fo r 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 loan s made from any fund constitut ed for the welfare of labour in
accordance with the rul es approved by 2[appropriate Government], and the interest due in respect
thereof;
(fff) deductions for recovery of loans granted for house -building or other purposes ap proved by
2[appropriate 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 3[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961)], or any provident fund
approved in this behalf by 2[appropriate Government], during the continuance of such approval; 4***
5[(ii) deductions made with the written authorisation of—
(i) the employed person; or
(ii) the president or secretary of the registered trade union of which the employed person is a
member on such conditions as may be prescribed,
for contribution to the National Defence Fund or to any Defence Savings Scheme approved by
2[appropriate Government];]
(j) deductions for payments to co-operative societies approved by 2[appropriate Government] 6[or
any officer specified by it in this behalf ] or to a scheme of insurance maintained by the Indian Post
Office; 7[and]
7[8[(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 2[appropriate Government] or for being deposited in any Post Office
Savings Bank in furtherance of any savings scheme of any such Government.]]
9[(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 membe rs of their
families, or both, and approved by 2[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);]
1. Subs. by Act 53 of 1964, s. 6, for clause (f) (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
3. Subs. by s. 6, ibid., for “in section 58A of the Indian Income-tax Act, 1922” (w.e.f. 9-11-2005).
4. The word “and” omitted by Ordinance 3 of 1940, s. 2.
5. Ins. by Act 42 of 1971, s. 6 (w.e.f. 4-12-1971).
6. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
7. Added by Ordinance 3 of 1940, s. 2
8. Subs. by Act 68 of 1957, s. 5, for clause (k) (w.e.f. 1-4-1958).
9. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).
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1[(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 sustain ed 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 carnage 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 th e employed person where such loss is directly attributable
to his neglect or default;]
2[(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;]
3[(q) deductions for contributions to any insurance scheme framed by the Central Government for
the benefit of its employees.]
4[(3) Notwithstanding anything contained in this Act, the total amount of deduc tions 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 5[the Railways Act, 1989 (24 of 1989)].]
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 6[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 person 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 7[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.
1. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
2. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
3. Ins. by Act 19 of 1977, s. 2 (w.e.f. 30-6-1977).
4. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 6, for “the Indian Railways Act, 1890” (w.e.f. 9-11-2005).
6. Subs. by s. 3, ibid., for “the State Government” (w.e.f. 9-11-2005).
7. Subs. by Act 38 of 1982, s. 8, for “half-an-anna in the rupee” (w.e.f. 15-10-1982).
10
(6) No fine imposed on any employed person shall be recovered from him by installments or after the
expiry of 1[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; a nd 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 2[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 emp loyment, 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 r ules made in this behalf by 3[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.
4[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.]
10. Deductions for damage or loss .— 5 [(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 bee n 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 subjec t to such conditions
as 6*** 3[appropriate Government] may impose.
1. Subs. by Act 41 of 2005, s. 7, for “sixty days” (w.e.f. 9-11-2005).
2. Subs. by Act 38 of 1982, s. 8, for “industrial establishment” (w.e.f. 15-10-1982).
3. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
4. Added by Act 22 of 1937, s. 2 (w.e.f. 14-4-1937).
5. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-1965).
6. The words “the Governor-General in Council or” omitted by the A.O. 1937.
11
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;
1[(aa) recovery of an advance of money given after employment began shall be subject to such
conditions as 2[appropriate Government] may impose;]
(b) recovery of advances of wages not already earned shall be subject to any rules made by
2[appropriate Government] regulating the extent to which such advances may be given and the
installments by which they may be recovered.
3[12A. Deductions for recovery of loans .—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[appropriate 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) 4 [and clause ( k)] of sub -section ( 2) of section 7 shall be subject to such conditions as
2[appropriate Government] may impose.
5[13A. Maintenance of registers and records .—(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 reg ister 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 6[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[Appropriate Government] may appoint Inspectors for the pur poses of this Act in respect of all
persons employed upon a railway (otherwise than in a factory) to whom this Act applies.
(3) 2[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 7[industrial or other establishments] in respect of which they shall
exercise their functions.
8[(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 9[industrial or other establishment ] at any reasonable time for the purpose of
carrying out the object of this Act;
1. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
3. Ins. by Act 53 of 1964, s. 9 (w.e.f. 1-2-1965).
4. Ins. by Ordinance 3 of 1940, s. 3.
5. Ins. by Act 53 of 1964, s. 10 (w.e.f. 1-2-1965).
6. Subs. by Act 68 of 1957, s. 6, for “sub-section (1) of section 10 of the Factories Act, 1934” (w.e.f. 1-4-1958).
7. Subs. by Act 38 of 1982, s. 9, for “industrial establishments” (w.e.f. 15-10-1982).
8. Subs. by Act 53 of 1964, s. 11, for sub-section (4) (w.e.f. 1-2-1965).
9. Subs. by Act 38 of 1982, s. 9, for “industrial establishment” (w.e.f. 15-10-1982).
12
(c) supervise the payment of wages to persons employed upon any railway or in any factory
or 1[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 2[Code of Criminal Procedure, 1973 (2 of 1974)] shall, so far as may b e,
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 3[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).
4[14A. Facilities to be afforded to Inspectors .—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 .—5[(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 inv estigation 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 dedu ctions 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.]
1. Subs. by Act 38 of 1982, s. 9, for “industrial establishment” (w.e.f. 15-10-1982).
2. Subs. by s. 9, ibid., for “Code of Criminal Procedure, 1898” (w.e.f. 15-10-1982).
3. Subs. by s. 9, ibid., for “section 98” (w.e.f. 15-10-1982).
4. Ins. by Act 53 of 1964, s. 12 (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 8, for sub-section (1) (w.e.f. 9-11-2005).
13
(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 act ing 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 1[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 1[twelve months] when
the applicant satisfies the authority that he had sufficient cause for not making the application within such
period.
2[(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 un der section 3, or give them an
opportunity of being heard, and, after such further enquiry, 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 e mployed 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 rupee s 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 a n 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.]
3[(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 4[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 sect ion, the authority may
direct that a penalty 4[not exceeding three hundred seventy -five rupees] be paid to 5[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 p ersons 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.
1. Subs. by Act 53 of 1964, s. 13, for “six months” (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 8, for sub-section (3) (w.e.f. 9-11-2005).
3. Subs. by Act 53 of 1964, s. 13, for sub-section (4) (w.e.f. 1-2-1965).
4. Subs. by Act 41 of 2005, s. 8, for “not exceeding fifty rupees” (w.e.f. 9-11-2005).
5. Subs. by s. 3, ibid., for “the State Government” (w.e.f. 9-11-2005).
14
(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the mea ning
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 the 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 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 sa me 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 i n 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) 3[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 4[the order or direction] was made,
in a Presidency-town 5*** 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 6[or
such direction has the effect of imposing on the employer or the other person a financial liability
exceeding one thousand rupees], or
7[(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 8[sub-section (4)] of sectioExcerpt shown. Open the full act in Lexace.