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The PAYMENT OF WAGES ACT, 1936

Punjab · state statute
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 THE PAYMENT OF WAGES ACT, 1936 
  
 ACT NO. 4 OF 1936 1* 
  
 [23rd April, 1936.] 
  
  
 An Act  to regulate  the  payment  of  wages  to  certain  classes  of 
 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. 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) 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 8*[this Act] or any of them to the payment of 
 wages to  any class  of persons  employed in  6*[any establishment or 
 class of establishments specified by the Central Government or a State 
 Government under sub-clause (h) of clause (ii) of section 2] 
  
      6*[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.] 
 --------------------------------------------------------------------- 
 1.   For Statement of Objects and Reasons, see Gazette of India, 1935, 
 Pt.  V. p.  20;  for  Report  of  Select  Committee, see ibid., p. 77. 
     The  Act  has been extended to the whole of Madhya Pradesh by M.P. 
 Act 23  of 1958;  to Goa,  Daman and  Diu by Reg. 12 of 1962, s. 3 and 
 Sch.; to  Dadra and  Nagar Haveli (w.e.f. 1-7-1965) by Reg. 6 of 1963, 
 s. 2  and Sch. I; to Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of 1963, 
 s. 3 and Sch, I and to Laccadive, Minicoy and Amindivi Islands by Reg. 
  
 Amended in Jammu and Kashmir by J and K Act 6 of 1974. 
 Amended in Madhya Pradesh by M.P.  Act 33 of 1976. 
 Amended in Tamil Nadu by T.N.  Acts (47 of 1974 and 36 of 1972). 
 Amended in West Bengal by W.B.  Acts (38 of 1974 and 26 of 1975). 
 Amended in Andhra Pradesh by A.P.  Act 21 of 1968. 
 Amended in Kerala by Kerala Acts 34 of 1969 and 11 of 1977. 
 Amended in Assam by Assam Act 1 of 1970. 
 Amended in Rajasthan by Raj. Act 13 of 1970. 
 Amended in Pondichery by Pondichery Act 10 of 1970.  8 of 1965, s.  3 
         and Sch. 
  
 2.  Subs.  by Act 38 of 1982, s.  2 (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 Sch.  (w.e.f.  1-9-1971). 
 2
 5.  28th March, 1937, see Gazette of India, 1937, Pt.  I, p.  626. 
 6.  Subs. by Act 38 of 1982, s. 3 (w. e. f. 15-10-82). 
 7.  Ins. by s. 3 ibid. (w.e.f. 15-10-1982). 
 8.  Subs.  by Act 68 of 1957, s.  2.  for "the Act" (w.e.f.  1-4-
1958). 
  
 96 
  
      (6) Nothing  in this  Act shall apply to wages payable in respect 
 of a wage-period which, over   such  wage-period,   average  1*[2* one 
 thousand six hundred rupees] a month or more. 
  
  
 2. 
  
 Definitions. 
  
  
      2. Definitions.- In this  Act, unless there is anything repugnant 
 in the subject or context,-- 
  
           3*[(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) 4*["industrial or other establishment" means]-- 
  
                     5*[(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; 
  
                     6*[(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; 
  
                     7*[(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 the 
                supply  of   water,  or  relating  to  the  generation, 
                transmission and  distribution of  electricity  or  any 
                other form of power is being carried on;] 
  
                     8*[(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.] 
 --------------------------------------------------------------------- 
 1.   Subs.  by Act 38 of 1982, s.  3  (w.e.f.  15-10-1982) 
 2.   Subs.  by Act 53 of 1964, s.  3, for cl.  (i) (w.e.f.  1-2-1965). 
 3
 3.   Subs.  by Act 38 of 1982, s.  4 (w.e.f.  15-10-1982). 
 4.   Subs.  by s.  3, ibid., for sub-clause (a) (w.e.f.  1-2-1965). 
 5.   Subs.  by Act 68 of 1957, s.  3, for sub-clause (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). 
  
 97 
  
           1*[(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);] 
  
           2*[(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 
  
           3*[(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, be 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; 
 --------------------------------------------------------------------- 
 1.   Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965). 
 2.   Subs. by s. 3, ibid., for cl. (iii) (w.e.f. 1-2-1965). 
 3.   Subs. by Act 68 of 1957, s. 3, for cl. (vi) (w.e.f. 1-4-1958). 
  
 98 
  
                          (2) the  value of any house-accommodation, or 
                     of the  supply of light, water, medical attendance 
 4
                     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. 
  
  
      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  1*[clause (f) of sub-section (1) 
                of section 7 of the Factories Act, 1948 (63 of 1948)], 
  
           2*[(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, 2*[shall also be responsible] 
 for such payment. 
  
  
 4. 
  
 Fixation of wage-periods. 
  
  
     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. 
 --------------------------------------------------------------------- 
 1.   Subs. by Act 68 of 1957, s. 4, for "clause (e) of sub-section (1) 
      of section 9 of the Factories Act, 1934" (w.e.f. 1-4-1958). 
 2.   Subs.  by Act 38 of 1982, s.  5 (w.e.f.  15-10-1982). 
 3.   Subs. by Act 53 of 1964, s.  4, for "shall be responsible" 
(w.e.f. 
      1-2-1965). 
  
 99 
  
  
 5
 5. 
  
 Time of payment of wages. 
  
  
      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 the expiry 
                of the seventh day, 
  
           (b) any  other railway,  factory or  1*[industrial or  other 
                establishment], shall be paid  before the expiry of the 
                tenth day, 
  
 after the  last day  of the  wage-period in respect of which the wages 
 are payable: 
  
      2*[Provided that in the case of persons employed on a dock, wharf 
 or jetty or in a mine, the balance of wages found due on completion of 
 the final tonnage account of the ship or wagons loaded or unloaded, as 
 the case  may be,  shall be  paid before the expiry of the seventh day 
 from the day of such completion.] 
  
      (2) Where  the employment  of any  person is  terminated by or on 
 behalf of  the employer,  the wages earned by him shall be paid before 
 the expiry  of the  second working  day from  the  day  on  which  his 
 employment is terminated: 
  
      2*[Provided that  where  the  employment  of  any  person  in  an 
 establishment is  terminated due  to the  closure of the establishment 
 for any  reason other  than a  weekly or other recognised holiday, the 
 wages earned  by him shall be paid before the expiry of the second day 
 from the day on which his employment is so terminated.] 
  
      (3) The  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) 3*[or  to persons  employed as  daily-rated  workers  in  the 
 Public Works  Department  of  the  Central  Government  or  the  State 
 Government] from the operation of this section in respect of the wages 
 of any such persons or class of such persons: 
  
      3*[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)  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. 
  
  
      6. Wages to be paid in current coin or currency notes.- All wages 
 shall be paid in current coin or currency notes or in both: 
  
      5*[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.] 
 --------------------------------------------------------------------- 
 1.  Subs.  by Act 38 of 1982, s.  6 (w.e.f.  15-10-1982). 
 2.  Added by Act 53 of 1964, s.  5 (w.e.f.  1-2-1965). 
 3.  Ins.  by s.  5, ibid.  (w.e.f.  1-2-1965). 
 4.  Subs.  by s.  5, ibid., for "All payments" (w.e.f.  1-2-1965). 
 5.  Ins.  by Act 29 of 1976, s.  3 (w.e.f.  12-11-1975). 
  
 100 
 6
  
  
 7. 
  
 Deductions which may be made from wages. 
  
  
      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. 
  
      1*[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. 
  
      2*[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; 
  
           3*[(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;] 
 --------------------------------------------------------------------- 
 1.   Explanation re-numbered  as Explanation I by Act 68 of 1957, s. 5 
      (w.e.f. 1-4-1958). 
 2.   Ins. by s. 5, ibid. (w.e.f. 1-4-1958). 
 3.   Subs. by s. 5, ibid., for cl. (d) (w.e.f. 1-4-1958). 
  
 101 
  
           (e) deductions  for such  amenities and services supplied by 
                the employer as the 1***  State  Government  2*[or  any 
                officer specified by it in this behalf] may, by general 
                or special order, authorise. 
  
           Explanation.--The word  "services" in  3*[this clause]  does 
                not include  the supply  of  tools  and  raw  materials 
                required for the purposes of employment; 
 7
  
           4*[(f) deductions  for  recovery  of  advances  of  whatever 
                nature (including  advances for travelling allowance or 
                conveyance allowance),  and the interest due in respect 
                thereof, or for adjustment of over-payments of wages; 
  
           (ff) deductions  for recovery  of loans  made from  any fund 
                constituted for  the welfare  of labour  in  accordance 
                with the  rules approved  by the  State Government, and 
                the interest due in respect thereof; 
  
           (fff) deductions  for recovery  of loans  granted for house- 
                building  or  other  purposes  approved  by  the  State 
                Government, and the interest due in respect thereof;] 
  
           (g) deductions of income-tax payable by the employed person; 
  
           (h) deductions  required to  be made  by order of a Court or 
                other authority competent to make such order; 
  
           (i) deductions  for subscriptions  to, and  for repayment of 
                advances  from   any    provident  fund  to  which  the 
                Provident Funds Act, 1925 (19 of 1925),  applies or any 
                recognised provident  fund 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; 
                5*** 
  
           (j)  deductions   for  payments  to  co-operative  societies 
                approved by  the State  Government  2*[or  any  officer 
                specified by  it in  this behalf]  or to  a  scheme  of 
                insurance maintained by the Indian Post Office; 6*[and] 
 --------------------------------------------------------------------- 
 1.   The words  "Governor-General in  Council or" omitted by the A. O. 
      1937. 
 2.   Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965). 
 3.   Subs. by Act 56 of 1974, s. 3 and Second Schedule, for "this sub- 
      clause". 
 4.   Subs. by Act 53 of 1964, s. 6, for cl. (f) (w.e.f. 1-2-1965). 
 5.   The word "and" omitted by Ordinance 3 of 1940, s. 2. 
 6.   Ins. by s. 2, ibid. 
  
 102 
  
           1*[2*[(k) deductions, made with the written authorisation of 
                     the person  employed for payment of any premium on 
                     his life  insurance policy  to the  Life Insurance 
                     Corporation of  India established  under the  Life 
                     Insurance Corporation  Act, 1956 (31 of 1956),  or 
                     for the  purchase of  securities of the Government 
                     of India  or of  any State Government or for being 
                     deposited in  any  Post  Office  Savings  Bank  in 
                     furtherance of  any savings  scheme  of  any  such 
                     Government.]] 
  
      3*[(kk)  deductions  made, with  the written authorisation of the 
 employed person,  for the  payment of  his contribution  to  any  fund 
 constituted by  the employer  or a  trade union  registered under  the 
 Trade Unions  Act, 1926 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 Unions Act, 
 1926;] 
  
           4*[(l)  deductions   for  payment  of  insurance  premia  on 
                Fidelity Guarantee Bonds; 
  
           (m) deductions for recovery of losses sustained by a railway 
 8
                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;] 
  
           5*[(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;] 
  
           6*[(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 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 
 --------------------------------------------------------------------- 
 1.   Ins. by Ordinance 3 of 1940, s. 2. 
 2.   Subs. by Act 68 of 1957, s. 5, for cl. (k) (w.e.f. 1-4-1958). 
 3.  Ins.  by Act 38 of 1982, s.  7 (w.e.f.  15-10-1982). 
 4.  Ins.  by Act 53 of 1964, s.  6 (w.e.f.  1-2-1965). 
 5.  Ins.  by Act 29 of 1976, s.  4 (w.e.f.  12-11-1975). 
 6.  Added by Act 19 of 1977, s.  2. 
  
 103 
  
           (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).] 
  
  
 8. 
  
 Fines. 
  
  
      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). 
  
 9
      (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 
 1*[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  1*[industrial or  other establishement] are part only of a 
 staff employed 
 --------------------------------------------------------------------- 
 1.  Subs. by Act 38 of 1982, s. 8 (w.e.f. 15-10-1982). 
  
 104-104B 
  
 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. 
  
  
      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 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 employment, 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 be any such terms be due to the employer in lieu of due notice. 
 10
  
      1*[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. 
  
  
      10. Deductions  for damage  or loss.- 2*[(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.] 
 --------------------------------------------------------------------- 
 1.   Added by Act 22 of 1937, s. 2. 
 2.   Subs. by  Act 53  of 1964, s. 7, for sub-section (1) (w.e.f. 1-2- 
      1965). 
  
 105 
  
      (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. 
  
  
      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 a  deduction under the said clause (e), shall be 
 subject to such conditions as 1*** the State Government may impose. 
  
  
 12. 
  
 Deductions for recovery of advances. 
  
  
      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; 
  
           2*[(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 
 11
                recovered. 
  
  
 12A. 
  
 Deductions for recovery of loans. 
  
  
     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 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  
insuranceschemes. 
  
  
      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 
 the State Government may impose. 
  
  
 13A. 
  
 Maintenance of registers and records. 
  
  
      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 
 --------------------------------------------------------------------- 
 1.   The words  "the Governor-General in Council or" omitted by the 
      A. O. 1937. 
 2.   Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965). 
 3.   Ins. by s. 9, ibid. (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). 
  
 106 
  
 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. 
  
  
      14. Inspectors.- (1) An  Inspector of  Factories appointed  under 
 1*[sub-section (1)  of section  8 of  the Factories Act, 1948   (63 of 
 1948)], shall  be an Inspector for the purposes of this Act in respect 
 of all factories within the local limits assigned to him. 
  
      (2) 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  2*[industrial  or  other 
 establishments]  in   respect  of  which  they  shall  exercise  their 
 12
 functions. 
  
           3*[(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  2*[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 
                     2*[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: 
 --------------------------------------------------------------------- 
 1.   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). 
 2.  Subs.  by Act 38 of 1982, s.  9 (w.e.f.  15-10-1982). 
 3.  Subs.  by Act 53 of 1964, s.  11, for sub-section (4) (w.e.f.  1-
2- 
     1965). 
  
 107 
  
      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 1*[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  the apply  to any  search or  seizure made 
 under the  authority of  a warrant  issued under 1*[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). 
  
  
 14A. 
  
 Facilities to be afforded to Inspectors. 
  
  
      2*[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 
ofwages and 
 penalty for malicious or vexatious claims. 
 13
  
  
      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 3*[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, 4*[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): 
 --------------------------------------------------------------------- 
 1.  Subs.  by Act 38 of 1982, s.  9 (w.e.f.  15-10-1982). 
 2.  Ins.  by Act 53 of 1964, s.  12 (w.e.f.  1-2-1965). 
 3.  Ins.  by s.  13, ibid.  (w.e.f.  1-2-1965). 
 4.  Subs.  by s.  13, ibid., for "of persons employed or paid in that 
     area" (w.e.f.  1-2-1965). 
  
 108 
  
      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. 
  
      (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 2*[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 
 14
                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*[(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 
 --------------------------------------------------------------------- 
 1.   Subs. by  Act 53  of 1964,  s. 13,  for "six months" (w.e.f. 1-2- 
      1965). 
 2.   Subs. by  s. 13,  ibid., for  "not exceeding  ten rupees  in  the 
      latter" (w.e.f. 1-2-1965). 
 3.   Subs. by s. 13, ibid., for sub-section (4) (w.e.f. 1-2-1965). 
  
 108A 
  
                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 

Excerpt shown. Open the full act in Lexace.

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