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PAYMENT OF WAGES ACT, 1936 (MAHARASHTRA AMENDMENT)

PAYMENT OF WAGES ACT, 1936 (MAHARASHTRA AMENDMENT)

PAYMENT OF WAGES ACT1936 (MAHARASHTRA AMENDMENT)

Section 1 - Short title, extent, commencement and application

(1)     This Act may be called the Payment of Wages Act, 1936.

[1] [(2)It extends to the whole of India [2] [***]].

(3) ??It shall come into force on such date[3] 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 [4] [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, [5] [and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of Section2].

(5) ? [6] [The appropriate government] may, after giving three months' notice of its intention of so doing, by notification in the Official Gazette, extend the provisions of [7] [this Act] or any of them to the payment of wages to any class of persons employed in [8] [any establishment or class of establishments specified by [9] [appropriate government] under sub-clause (h) of clause (ii) of Section 2]:

[10] [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.]

[11] [(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 six thousand five hundred 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[12] in the Official Gazette, specify.]

STATE AMENDMENTS

MAHARASHTRA

[13] [In its application to the State of Maharashtra, in Section 1, Sub Section 6, for the words "one thousand six hundred rupees" substitute "six thousand five hundred".]

 

 

Section 2 - Definitions

In this Act, unless there is anything repugnant in the subject or context,---

[14] [(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;';

[15] [(ia)  "employed person" includes the legal representative of a deceased person;

(ib) "employer" includes the legal representative of a deceased employer;

(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) [16] ["industrial or other establishment" means] any--

[17] [(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;

[18] [(c) inland vessel, mechanically propelled;]

(d) ? mine, quarry or oil-field;

(e)?? plantation;

(f)??? workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale;

[19] [(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, bridges or mission and distribution of electricity  or any other form of power is being carried on;]

[20] [(h) any other establishment or class of establishment which[the 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;]

[21] [(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);]

[22] [(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;

[23] '(v) "railway administration" has the meaning assigned to it in clause (32) of section 2 of the Railways Act, 1989(24 of 1989);.

[24] [(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 respect of his employment or of work done in such employment, and includes-

(a)    any remuneration payable under any award or settlement between the parties or order of a Court;

(b)   any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;

(c)    any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);

(d)    any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

(e)    any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include-

(1)    any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;

(2)    the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;

(3)    any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;

(4)    any travelling allowance or the value of any travelling concession;

(5)    any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or

(6)    any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]

 

STATE AMENDMENTS

[25] [Same as that Maharashtra.]

[26] [Maharashtra.?

 In section 2--

(a)    after clause (ii), insert the following clause, namely:--

"(iia) 'legal representative' means the person who in law represents the estate of a deceased employed person".

(b)    for clause (iii), substitute the following clause, namely:--

"(iii) 'Plantation' means--

(a)    any estate which is maintained for the purpose of growing cinchona, rubber, coffee or tea, or

(b)    any farm which is maintained for the purpose of growing sugarcane and attached to a factory established or maintained for the manufacture of sugar:

Provided that on such estate or farm twenty-five or more persons are engaged for the purpose:".

Section 6 -Wagesto be paid in current coin or currency notes

[27] [ 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.]

[STATE AMENDMENTS

[28] [same as that of Maharashtra.]

[29] [Maharashtra

For section 6, the following shall be substituted--

"6. Wages to be paid in current coins or currency notes.--All wages shall be paid in current coins or currency notes, or in both:

Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-forth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed."

Explanation.--For the purpose of this section, the expression--

(1)   'wages' shall include any bonus of the description given in sub-clause (1) of clause (iv) of section 2, and

(2)   'bonus' means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause (1) of clause (vi) of section 2."]

 

Section 7 - Deductions which may be made fromwages

(1)    Notwithstanding the provisions of [30] [the Railways Act, 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.

[31] [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.

[32] [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;

[33] [(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by the[state Government] by notification in the Official Gazette;]

[(e)? deductions for such amenities and services supplied by the employer as the [34] [***][state Government] [35] [or any officer specified by it in this behalf] may, by general or special order, authorise;]

Explanation-The word "services" in [36] [this clause] does not include the supply of tools and raw materials required for the purposes of employment;]

[37] [(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 loan 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 recognized provident fund as defined [38] [in section (38) of section 2 of the Income-tax Act, 1961], or any provident fund approved in this behalf by the State Government, during the continuance of such approval;] [39] [***]

[40] [(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 the State Government;]

(j)??? deductions for payments to co-operative societies [approved by the [state Government] [41] [or any officer specified by it in this behalf]] or to a scheme of insurance maintained by the Indian Post Office; [42] [and]

[43] [[44] [(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.]]

[45] [(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Union Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, [and approved by the [state Government] or any officer specified by it in this behalf, during the continuance of such approval;]

(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926);]

[46] [(l) deductions, for payment of insurance premia on Fidelity Guarantee Bonds;

(m)? deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;

(n)?? deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharf age 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 the employed person where such loss is directly attributable to his neglect or default;]

[47] [(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;]

[48] [(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]

[49] [(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 percent of such wages, and

(ii)   in any other case, fifty, percent, of such wages:

Provided that where the total deductions authorised under sub-section (2) exceed seventy-five percent, or, as the case may be, fifty percent, 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 [50] [ the Railways Act, 1989.]

[STATE AMENDMENTS

[51] [Maharashtra.--

In section 7, in sub-section (2), in clause (d), after the word "employer", add the following words, namely:--

"or the State Government, or the Bombay Housing Board constituted under the Bombay Housing Board Act, 1948 (Bom LXIX of 1948), or such other agency as the State Government may, by notification in the Official Gazette, direct." [Vide Maharashtra Act 37 of 1956, sec. 2 (w.e.f. 19-7-1956)].

In section 7, in sub-section (2)--

(a)      in clause (j), at the end, omit the word "and";

(b)      after clause (k), add the following clause namely:--

"(1) deduction made, with the consent of the person employed, for contribution towards any public charitable purpose which the State Government may by notification in the Official Gazette specify in that behalf.]

[52] [ In section 7, in sub-section (2), in clause (k), omit the words "for being deposited in any post office, Savings Bank.]

Section 8 - Fines

(1)   No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the [state Government] or of the prescribed authority, may have specified by notice under sub-section (2).

 

(2)   A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment 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 [53] [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 installments or after the expiry of [54] [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; 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 [55] [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.

STATE AMENDMENTS

[56] [Maharashtra.?

In its application to the Bombay Area of the State of Maharashtra, in section 8, in sub-section (8), before the Explanation, add the following words, namely:--

"but in the case of any factory or establishment to which the Bombay Labour Welfare Fund Act, 1953, applies, all such realizations shall be paid into the fund constituted under the said Act.]

 

Section 15 - Claims arising out of deductions fromwagesor delay inpaymentofwagesand penalty for malicious or vexatious claims

[57] [(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 or under any corresponding law relating to the investigation 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 deductions from the wages, or delay in payment of the wages, of persons employed or paid in that area, including all matters incidental to such claims:

Provided that where the 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.";

(2)?? Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3):

Provided that every such application shall be presented within [58] [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 [59] [twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

[60] [(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 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 employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and not exceeding three thousand rupees 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 an 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.";

[61] [(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 [62] [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 section, the authority may direct that a penalty not exceeding fifty rupees be paid to the state Government by the employer or other person responsible for the payment of wages.

(4A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or of the employed person, the decision of the authority on such dispute shall be final.

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).]

(5)?? Any Amount directed to be paid under this section may be recovered-

(a)    if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and

(b)    if the authority is a Magistrate, by the Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.

 

STATE AMENDMENTS

[63] [[64] [Maharashtra.?

In its application to the State of Bombay (which term shall stand unmodified--(Gujarat and Maharashtra A.L.O., 1960), in section 15,--

(a)    in sub-section (1), for the words and figures beginning with "appoint any" and ending with "to be the authority", substitute the words "appoint one or more persons to be the authority or authorities.]

(b)   after sub-section (1), insert the following sub-sections, namely:--

[65] [(1A) A person shall not be qualified for appointment as an authority under this Act unless he is a Commissioner for Workmen's Compensation or any other officer with experience as a Judge of a Civil Court or as a stipendiary Judicial Magistrate or as a Judge of a Labour Court or as a judicial member of the Industrial Court constituted under the Bombay Industrial Relations Act, 1946, or as a presiding officer of a Tribunal constituted under the Industrial Disputes Act, 1947.

(IB) Where more than one person are appointed for any specified area as authorities under sub-section (1), the State Government may by general or special order make such arrangements as it thinks fit for the distribution of the work among the authorities so appointed.]

[66] [(c) in sub-section (2),--

(i)??? after the words "to act on his behalf", insert the words and figures "or a representative union registered as such under the Bombay Industrial Relations Act, 1946,";

(ii)??? after the word, brackets and figure "sub-section (3)", insert the words "and in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction;]

[67] [(iii) in both the provisos, for the words "six months", substitute the words "one year]

[68] [(d) in sub-section (3),--

(i)??? for the words "refund to the employed person", substitute the words "refund to the employed person or his legal representative, as the case may be;]

[69] [(ii) for the words "ten rupees", substitute the words "twenty-five rupees;]

[70] [(iii) after the words "twenty-five rupees in the latter", insert the following words, namely:--

"and the authority may direct the payment of such compensation in cases, where the amount deducted or delayed wages are paid by the employer to the employed person or his legal representative before the disposal of the application]

[71] [(iv) in the proviso, after the words "employed person", at both the places where they occur, insert the words "or his legal representative".

(e)??? for sub-section (4), substitute the following sub-section, namely:--

"(4) If the authority hearing any application under this section is satisfied,--

(i)    that the application was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(ii)    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 also paid by the employer or other person responsible for the payment of wages. The amount of such penalty when paid or recovered shall be credited to the State Government";

[72] [(f) for sub-section (5), substitute the following, sub-section, namely:--

"(5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall for that purpose be deemed to be a public officer within the meaning of section 5 of Revenue Recovery Act, 1890";

[73] [(g) after sub-section (5), add the following sub-section, namely:--

"(6) Where a question arises as to whether any person is or is not a legal representative of the deceased employed person, such question shall be determined by the authority and the decision of the authority shall be final".

[74] [Maharashtra.--

In its application to the State of Bombay, after section 15, insert the following section, namely:--

"15A. Liability for payment of court-fees.--

(1)   In any proceedings under section 15, the applicant shall not be liable to pay any court-fees (other than fees payable for the service of process) in respect of such proceedings: Provided that when the application is presented by an Inspector he shall not be liable to pay the process fees also.

(2)   Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employee or other person responsible for the payment of wages under section 3 to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.]

 

Section 17 - Appeal

 

(1)   [75] [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 [76] [the order or direction] was made, in a Presidency-town [77] [***] 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 [78] [or such direction has the effect of imposing on the employer or the other person a financial liability exceeding one thousand rupees], or

[79] [(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 [80] [sub-section (4)] of section 15.

[81] [(1A) No appeal under clause (a) of sub-section (1)] shall lie unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the direction appealed against.]

[82] [(2) Save as provided in sub-section (1) any order dismissing either wholly or in part an application made under sub-section (2) of section 15, or a direction made under sub-section (3) or sub-section (4) of that section shall be final.]

[83] [(3) Where an employer prefers an appeal under this section, the authority against whose decision the appeal has been preferred may, and if so directed by the court referred to in sub-section (1) shall, pending the decision of the appeal, withhold payment of any sum in deposit with it.

(4)?? The court referred to in sub-section (1) may, if it thinks fit, submit any question of law for the decision of the High Court and, if it so does, shall decide the question in conformity with such decision.]

[STATE AMENDMENTS

[84] [(1) Same as that of Maharashtra (1).]

[Maharashtra

In section 17, in sub-section (1),--

[85] [(1) Add the following proviso, namely:--

"Provided that no appeal by an employer or other person responsible for the payment of wages under section 3 under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited with it the amount payable under the order appealed against".]

[86] [(2) Same as that of Gujarat (2)].

 

Section 17A - Conditional attachment of property of employer or other person responsible forpaymentofwages

[87] [17A. Conditional attachment of property of employer or other person responsible for payment of wages

(1)    Where at any time after an application has been made under sub-section (2) of section 15 the authority, or where at any time after an appeal has been filed under section 17 by an employed person or [88] [any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf or any Inspector under this Act or any other person permitted by the authority to make an application under sub-section (2) of section 15] the Court referred to in that section, is satisfied that the employer or other person responsible for the payment of wages under section 3 is likely to evade payment of any amount that may be directed to be paid under section 15 or section 17, the authority or the court, as the case may be, except in cases where the authority or court is of opinion that the ends of justice would be defeated by the delay, after giving the employer or other person an opportunity of being heard, may direct the attachment of so much of the property of the employer or other person responsible for the payment of wages as is, in the opinion of the authority or court, sufficient to satisfy the amount which may be payable under the direction.

(2)   The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to attachment before judgment under that Code shall, so far as may be, apply to any order for attachment under sub-section (1).]

[STATE AMENDMENTS

[89] Same as that of Maharashtra.

[90] [Same as that of Maharashtra.]

[91] [Maharashtra

In section 17A, for the words "any official of a registered trade Union authorised in writing to act on his behalf", read the words "any other person or a representative union competent to present such appeal". 

SECTION 17B

[92] [Maharashtra

In its application to the State of Bombay, after section 17A, the following new section shall be inserted, namely:--

"17B. Provisions of section 15A to apply to appeals preferred under section 17 with modification.--When an appeal is preferred under section 17 by a person making an application under section 15, the provisions of Section 15A shall mutatis mutandis apply, with the modification that such person, not being an Inspector, shall pay court-fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal."

[93] [Same as that of Maharashtra.]]]

[94] [Same as that of Maharashtra.]

 

Section 21 - Procedure in trial of offences

(1)    No Court shall take cognizance of a complaint against any person for an offence under sub-section (1) of section 20 unless an application in respect of the facts constituting the offence has been presented under section 15 has been granted wholly or in part and the authority empowered under the latter section or the Appellate Court granting such application has sanctioned the making of the complaint.

(2)    Before sanctioning the making of a complaint against any person for an offence under sub-section (1) of section 20, the authority empowered under section 15 or the Appellate Court, as the case may be, shall give such person an opportunity of showing cause-against the granting of such sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his default was due to-

 

 

(a)    a bona fide error or bona fide dispute as to the amount payable to the employed person, or

(b)   the occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment, or 

(c)    the failure of the employed person to apply for or accept payment.

(3)    No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rules made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.

[95] [(3A) No Court shall take cognizance of any offence punishable under sub-section (3) or sub-section (4) of section 20 except on a complaint made by or with the sanction of an Inspector under this Act.]

(4)   In imposing any fine for an offence under sub-section (1) of section 20 the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 15.

STATE AMENDMENTS

[96] [Same as that of Maharashtra.

Maharashtra.-In section 21,--

[97] [(a) in sub-section (1), for the words and figure "and the authority empowered under section 15 or the appellate Court granting such application", substitute the words "by the authority or the appellate Court and the State Government or any officer authorised by it in this behalf";

(b)?? in sub-section (2)--

(i)??? for the words and figure "the authority empowered under section 15 or the appellate Court", substitute the words "the State Government or the office authorised by it in this behalf";

(ii)?? for the words "the authority or Court", substitute the words "the State Government or the authorised officer; and"]

[98] [(iii) in clauses (a) and (c), after the words "employed person", in both the places where they occur, insert the words "or his legal representative".]

Section 26 - Rule-making power

(1)   The [state Government] may make rules to regulate the procedure to be followed by the authorities and Courts referred to in sections 15 and 17.

(2)    The [state Government] may,[99] [***] by notification in the Official Gazette, make rules for the purpose of carrying into effect the provisions of this Act.

(3)    In particular and without prejudice to the generality of the foregoing power, rules made under sub-section (2) may-

(a)    require the maintenance of such records, registers, returns and notices as are necessary for the enforcement of the Act [100] [prescribe the form thereof and the particulars to be entered in such registers or records];

(b)    require the display in a conspicuous place or premises where employment is carried on of notices specifying rates of wages payable to persons employed on such premises;

(c)    provide for the regular inspection of the weights, measures and weighing machines used by employers in checking rates of wages payable to persons employed on such premises;

(d)    prescribe the manner of giving notice of the days on which wages will be paid;

(e)    prescribe the authority competent to approve under sub-section (1) of section 8 acts and omissions in respect of which fines may be imposed;

 

 

(f)     prescribe the procedure for the imposition of fines under section 8 and for the making of the deductions referred to in section 10;

(g)    prescribe the conditions subject to which deduction may be made under the proviso to sub-section (2) of section 9;

(h)    prescribe the authority competent to approve the purposes on which the proceeds of fines shall be expended;

(i)     prescribe the extent to which advances may be made and the installments by which they may be recovered with reference to clause (b) of section 12;

[101] [(ia) prescribe the extent to which loans may be granted and the rate of interest payable thereon with reference to section 12A;

(ib)? prescribe the powers of Inspectors for the purposes of this Act;]

(j)    regulate the scales of costs which may be allowed in proceedings under this Act

(k)    prescribe the amount of court-fees payable in respect of any proceedings under this Act;[102] [***]

(l)     prescribe the abstracts to be contained in the notices required by section 25;[103] [***]

[104] [(la) prescribe the form and manner in which nominations may be made for the purposes of sub-section (1) of section 25A, the cancellation or variation of any such nomination, or the making of any fresh nomination in the event of the nominee predeceasing the person making nomination, and other matters connected with such nominations;

(lb) specify the authority with whom amounts required to be deposited under clause (b) of sub-section (1) of section 25A shall be deposited, and the manner in which such authority shall deal with the amounts deposited with it under that clause;]

[105] [(m) provide for any other matter which is to be or may be prescribed.]

(4)   In making any rule under this section the [state Government] may provide that a contravention of the rule shall be punishable with fine [106] [which shall not be less than seven hundred fifty rupees but which may extend to one thousand and five hundred rupees]

(5)   All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under clause (3) of section 23 of the General Clauses Act, 1897 (10 of 1897), shall not be less than three months from the date on which the draft of the proposed rules was published.

[107] [(6) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in [108] [two or more successive sessions,] and if, before the expiry of the session [109] [immediately following the session or the successive sessions aforesaid,) both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

[110] (7) All rules made under this section by the State Government shall, as soon as possible after they are made, be laid before the State Legislature.".

 

[STATE AMENDMENTS

[111] [Same as in Maharashtra.]

[112] [Maharashtra.--

In section 26, in sub-section (3),--

(1)   after clause (d), insert the following clause, namely:--

"(da) prescribe the manner in which the excess amount of the bonus shall be paid or invested under section 6";

(2)    in clause (k),--

(a)    for the word "court-fees", substitute the words "ad valorem or fixed court-fees";

(b)    the word "and" shall be deleted,]

 

 

 

 

 

 



[1] Substituted by the Adaptation of Laws Order, 1950, for sub-Section (2).

[2] The words "except the State of Jammu and Kashmir" Substituted by Act 3 of 1951, Section 3 and Schedule for  the words "except Part B States" which were subsequently omitted by Act 51 of 1970, Section 2 and Schedule

[3] Came into force on 28-3-1937, see Gazette of India, 1937, Pt. I, pg.626.

[4] Substituted by Act 38 of 1982, Section 3, for "factory and to persons "w.e.f. 15-10-1982.

 

[5] Inserted by Act 38 of 1982, Section 3 w.e.f. 15-10-1982.

[6] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was "the central Government or a state Government" (w.e.f. 9-11-2005).

[7] Substituted by Act 68 of 1957, Section 2, for "the Act "w.e.f. 1-4-1958.

[8] Substituted by Act 38 of 1982, Section 3, for "any industrial establishment or in any class or group of industrial establishments" w.e.f.15-10-1982.

[9] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was "the central Government or a state Government" (w.e.f. 9-11-2005).

[10] Substituted by Act 38 of 1982, Section 3, for proviso w.e.f. 15-10-1982.

[11] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was  Nothing in this Act shall apply to wages payable in respect of a wage-period, over such wage-period, average [one thousand six hundred rupees] a month or more.

[12] "Twenty four thousand rupees per month" vide S.O. 2806 (E), dated 28.08.2017.

[13] Substituted by Maharahtra Act 33 of 2005, Section 2.

 

[14] Inserted vide Payment of Wages (Amendment) Act, 2005.  Also previous clauses (i), (ia) and (ib) renumbered as (i), (ia) (ib) and (ic)

[15] Substituted by Act 53 of 1964, section 3, for clause (i) w.e.f. 1-2-1965.

[16] Substituted by Act 38 of 1982, section 4, for ' "industrial establishment" means' w.e.f. 15-10-1982.

[17] Substituted by Act 38 of 1982, section 4, for ' "industrial establishment" means' w.e.f. 15-10-1982.

[18] Substituted by Act 38 of 1982, section 4, for ' "industrial establishment" means' w.e.f. 15-10-1982.

 

[19] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

 

[20] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

[21] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

[22] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

[23] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

 

[24] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

[25] Inserted by Act 68 of 1957, section 3 w.e.f. 1-4-1958.

 

[26] Vide Bombay Act 48 of 1955, sec. 2 (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 and Sch. (w.e.f.  4-3-1961).

[27] Substituted by the Payment of Wages (Amendment) Act, 2017 for the following:-

"All wages shall be paid in current coins or currency notes or in both:

[Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]"

 

[28] Vide Gujarat Act 26 of 1961, section 3 (w.e.f. 12-6-1961).

 

[29] Vide Maharashtra Act 13 of 1961, section 4 (w.e.f. 4-3-1961).

 

[30] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was "sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)"

[31] Explanation re-numbered as Explanation I by Act 68 of 1957, section 5 w.e.f. 1-4-1958.

 

[32] Inserted by Act 68 of 1957, section 5 w.e.f. 1-4-1958.

[33] Substituted by Act 68 of 1957, section 5, for clause (d) w.e.f. 1-4-1958.

 

[34] The words "Governor-General in Council or" omitted by the A.O. 1937.

[35] Inserted by Act 53 of 1964, section 6 w.e.f. 1-2-1965.

 

[36] Substituted by Act 56 of 1974, section 3 and Schedule II, for "this sub-clause".

 

[37] Substituted by Act 53 of 1964, section 6, for clause (f) w.e.f. 1-2-1965.

 

[38] Substituted vide Payment of Wages (Amendment) Act, 2005

[39] The word "and" omitted by Ordinance 3 of 1940, section 2.

 

[40] Inserted by Defence Of India Act, 1971.

[41] Inserted by Act 53 of 1964, section 6 w.e.f. 1-2-1965.

 

[42] Added by Ordinance 3 of 1940, section 2.

[43] Added by Ordinance 3 of 1940, section 2.

 

[44] Added by Ordinance 3 of 1940, section 2.

[45] Inserted by Act 38 of 1982, section 7 w.e.f. 15-10-1982.

 

[46] Inserted by Act 53 of 1964, section 6 w.e.f. 1-2-1965.

[47] Inserted by Act 29 of 1976, section 4 w.e.f 12-11-1876.

[48] Inserted by Act 19 of 1977, section 2, w.e.f. 30-6-1977.

[49] Inserted by Act 53 of 1964, section 6 w.e.f. 1-2-1965.

[50] Substituted vide Payment of Wages (Amendment) Act, 2005.

 

[51] Vide Maharashtra Act 42 of 1961, sec. 2 (w.e.f. 9-10-1961).

[52] Vide Maharashtra Act 13 of 1961, sec. 5 (w.e.f. 4-3-1961).

 

[53] Substituted by Act 38 of 1982, section 8, for "half-an-anna in the rupee" w.e.f. 15-10-1982.

[54] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was sixty days

[55] Substituted by Act 38 of 1982, for "industrial establishment" w.e.f. 15-10-1982.

 

[56] Vide Bombay Act 40 of 1953, sec. 23.

[57] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was

The state Government may, by notification in the Official Gazette, appoint [a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State or] any Commission for Workmen's Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, [of persons employed or paid in that area, including all matters, incidental to such claims: Provided that where the state Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.]]

 

[58] Substituted by Act 53 of 1964, section 13, for "six months" w.e.f. 1-2-1965.

 

[59] Substituted by Act 53 of 1964, section 13, for "six months" w.e.f. 1-2-1965.

 

[60] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further inquiry (if any) as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and [not exceeding twenty-five rupees in the latter, and even if the amount deducted or the delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees]]

 

[61] Substituted by Act 53 of 1964, section 13, for sub-section (4) w.e.f. 1-2-1965.

[62] Substituted vide Payment of Wages (Amendment) Act, 2005. Previous text was "not exceeding fifty rupees"

[63] Vide Bombay Act 48 of 1955, sec. 3(b) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].

 

[64] Vide Bombay Act 48 of 1955, sec. 3(a) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961 sec. 2 (w.e.f. 4-3-1961)].

[65] Vide Bombay Act 48 of 1955, sec. 3(b) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].

[66] Vide Bombay Act 48 of 1955, sec. 3(c), (w.e.f. 1-7-1956)].

[67] Vide Bombay Act 62 of 1953, sec. 4(2) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 6 (w.e.f. 4-3-1961).

[68] Vide Bombay Act 48 of 1955, sec. 3(d) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].

 

[69] Vide Bombay Act 62 of 1953, sec. 4 (3) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961).

 

[70] Vide Bombay Act 48 of 1955, sec. 3(d); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].

[71] Vide Bombay Act 62 of 1953, sec. 4(5) (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961)].

[72] Vide Bombay Act 70 of 1954, sec. 2 (w.e.f. 15-11-1954); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961).

 

[73] Vide Bombay Act 48 of 1955, sec. 3(e) (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961).

[74] Vide Bombay Act 62 of 1953, sec. 5 (w.e.f. 10-5-1994); Maharashtra Act 13 of 1961, sec. 2 (w.e.f. 4-3-1961).

 

[75] Substituted by Act 68 of 1957, section 7, for "An appeal against a direction made under sub-section (3) or sub-section (4) of section 15" (w.e.f. 1-4-1958).

 

[76] Substituted by Act 68 of 1957, section 7, for "An appeal against a direction made under sub-section (3) or sub-section (4) of section 15" (w.e.f. 1-4-1958).

 

[77] The words "or in Rangoon" omitted by the A.O. 1937.

 

[78] Inserted by Act 53 of 1964, section 15 (w.e.f. 1-2-1965).

[79] Substituted by Act 53 of 1964, section 15, for clause (b) (w.e.f. 1-2-1965).

[80] Substituted by Act 20 of 1937, section 2 and Schedule I, for "sub-section (5)".

[81] Inserted by Act 53 of 1964, section 15 (w.e.f. 1-2-1965).

[82] Substituted by Act 68 of 1957, section 7, for sub-section (2) (w.e.f. 1-4-1958).

[83] Inserted by Act 53 of 1964, section 15 (w.e.f. 1-2-1965).

[84] Vide Bombay Act 62 of 1953, section 6 (w.e.f. 1-6-1961).

[85] Vide Bombay Act 62 of 1953, section 6 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, section 2 (w.e.f. 4-3-1961).

 

[86] Vide Maharashtra Act 13 of 1961, section 7 (w.e.f. 4-3-1961).

[87] Inserted by Act 68 of 1957, section 8 ( w.e.f. 1-4-1958).

 

[88] Substituted by Act 53 of 1964, section 16, for certain words ( w.e.f. 1-2-1965).

[89] Vide Gujarat Act 26 of 1961, section 7 (w.e.f. 12-6-1961).

[90] Vide Bombay Act 70 of 1954, section 3 and Gujarat Act 26 of 1961, section 8 (w.e.f. 12-6-1961).

[91] Vide Maharashtra Act 13 of 1961, section 8 (w.e.f. 4-3-1961).

[92] Vide Maharashtra Act 13 of 1961, section 9 (w.e.f. 4-3-1961).

 

[93] Vide Rajasthan Act 13 of 1970, section 3 (w.e.f. 3-12-1970).

[94] Gujarat Act 26 of 1961, section 8.

[95] Inserted by Act 53 of 1964, section 19 (w.e.f. 1-2-1965).

[96] Vide Gujarat Act 26 of 1961, section 2 (w.e.f. 12-6-1961).

 

[97] Vide Bombay Act 62 of 1953, section 8 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961, section 2 (w.e.f. 4-3-1961).

[98] Vide Bombay Act 48 of 1955, section 5 (w.e.f. 1-7-1956); Maharashtra Act 13 of 1961, section 2 (w.e.f. 4-3-1961).

[99] The words "Subject to the control of the Governor General in Council" omitted by the A.O. 1937.

 

[100] Substituted by Act 53 of 1964, section 22, for "and prescribe the form thereof" w.e.f. 1-2-1965.

 

[101] Inserted by Act 53 of 1964, section 22 w.e.f. 1-2-1965.

 

[102] The word "and" omitted by Act 53 of 1964, section 22 w.e.f. 1-2-1965.

[103] The word "and" Inserted by Act 53 of 1964, section 22 w.e.f. 1-2-1965 and omitted by Act 38 of 1982, ection 14 w.e.f. 15-10-1982.

[104] Inserted by Act 38 of 1982, section 14 w.e.f. 15-10-1982.

[105] Inserted by Act 53 of 1964, section 22 w.e.f. 1-2-1965.

[106] Substituted vide Payment of Wages (Amendment) Act, 2005.

[107] Inserted by Act 53 of 1964, section 22 w.e.f. 1-2-1965.

 

[108] Substituted by Act 38 of 1982, section 14, for "two successive sessions" w.e.f. 15-10-1982.

[109] Substituted by Act 38 of 1982, section 14, for "in which it is so laid or session immediately following" w.e.f 15-10-1982.

[110] Inserted vide Payment of Wages (Amendment) Act, 2005.

[111] Vide Gujarat Act 26 of 1961, sec. 2 (w.e.f. 12-6-1961)].

 

[112] Vide Bombay Act 62 of 1953, sec. 9 (w.e.f. 10-5-1954); Maharashtra Act 13 of 1961 sec. 2 (w.e.f. 4-3-1961).