Page 82 - IRSEM_Main Book

Para No. 3.5.4 Annexure: 3-A13 - contd.

Payment of Wages Act

1. Application. The Payment of Wages Act applies to the payment of wages to persons
employed in any factory and to persons employed (other than in a factory) upon any railway
by a Railway Administration or, either directly or through a subcontractor, by a person
fulfilling a contract with a Railway Administration and employing or having employed twenty
or more persons on any day of the preceding twelve months.

2. Wages. Means all remuneration (whether by way of salary allowance 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.

3. Main Provisions of the Act—

(a) Responsibility far Payment of Wages—Every employer shall be responsible for the
payment to persons employed by him of all wages to be paid under this Act. In factories,
the person named as the Manager of the factory will be responsible for the payment.

(b) Fixation of wage periods—Every person responsible for the payment of wages to
persons employed by him shall fix periods in respect of which such wages shall be
payable and no wage period shall exceed one month.

(c) Time of payment of wages—Wages shall be paid on a working day within 7 days of the
last day of the wage period in an establishment where less than 1000 men are employed
and in other establishments before the expiry of the tenth day.

When 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.

(d) Deductions which may be made from wages- The wages of an employed person shall be
paid to him without deductions of any kind except those authorised by or under this Act.

(e) Deductions for absence from duty—Deductions may be made only on account of the absence
of an employed person from the place or places where 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.

(f) Deductions for damage or loss—A deduction for damage to or loss of goods not exceeding the
amount of the damage or loss caused to the employer by neglect or default of the employed
person. Deductions under this clause shall not be made unless it is established—

(i) That the money or goods lost or damaged was expressly entrusted to the custody of
the employees concerned, and

(ii) That the cause of such loss or damage is directly attributable to his neglect or default.

(g) Display of notices—The person responsible for the payment of wages to men employed
in a factory shall cause so be displayed in such a factory a notice containing such
abstract of this act and of the rules made thereunder in English and in the language of
the majority of persons in the factory as may be. prescribed by the Government.

Chapter 3: Duties Of Signal Supervisors And Technical Staff Page 58 of 535