Payment of Wages Act.Doc
PAYMENT OF WAGES ACT
OBJECT AND SCOPE
The Payment of Wages Act (Act IV of 1936) was passed to regulate the payment of wages to certain classes of persons employed in factories and industrial establishments. The Act ensures regular and prompt payment of wages and prevents the exploitation of wage-earners by prohibiting arbitrary fines and deductions from wages.
The Act applies to the whole of India, including the state of Jammu and Kashmir.
The Act applies to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) upon any railway by a railway administration either directly or through a subcontractor, by a person fulfilling a contract with a railway administration.
The State Government may after giving three months’ notice by notification in the Gazette, extend the provisions of the Act or any of them to the payment of wages of any class of persons employed in any industrial establishment or class group of industrial establishments.
In many States, the Act has been extended to various industries, e.g., shops and establishments, omnibus service (in Assam, Maharashtra, and West Bengal), tramways etc.
SCOPE OF PAYMENT
History
The Payment of Wages Act of 1936, was initially made applicable to people drawing less than Rs. 200 a month. In 1967, the limit was raised to Rs. 400 a month. On 12th November 1975, the President of India issued an Ordinance amending the Act to cover workers getting up ro Rs. 1000 a month. In 1976, the Ordinance was replaced by an Act, which was passed on 11th February. The effect of the Act was that nothing in this Act applied to wages payment in respect of a wages period, over such wage period, average Rs. 1000 a month or more. Thes limit was raised from Rs. 1000 to Rs. 1600 by the Payment of Wages (Amendment) Act, 1982.
The Act of 1976 provided for the payment of wages in cash, by cheque or by crediting the wages to the bank account of a worker after obtaining his written
OBJECT AND SCOPE
The Payment of Wages Act (Act IV of 1936) was passed to regulate the payment of wages to certain classes of persons employed in factories and industrial establishments. The Act ensures regular and prompt payment of wages and prevents the exploitation of wage-earners by prohibiting arbitrary fines and deductions from wages.
The Act applies to the whole of India, including the state of Jammu and Kashmir.
The Act applies to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) upon any railway by a railway administration either directly or through a subcontractor, by a person fulfilling a contract with a railway administration.
The State Government may after giving three months’ notice by notification in the Gazette, extend the provisions of the Act or any of them to the payment of wages of any class of persons employed in any industrial establishment or class group of industrial establishments.
In many States, the Act has been extended to various industries, e.g., shops and establishments, omnibus service (in Assam, Maharashtra, and West Bengal), tramways etc.
SCOPE OF PAYMENT
History
The Payment of Wages Act of 1936, was initially made applicable to people drawing less than Rs. 200 a month. In 1967, the limit was raised to Rs. 400 a month. On 12th November 1975, the President of India issued an Ordinance amending the Act to cover workers getting up ro Rs. 1000 a month. In 1976, the Ordinance was replaced by an Act, which was passed on 11th February. The effect of the Act was that nothing in this Act applied to wages payment in respect of a wages period, over such wage period, average Rs. 1000 a month or more. Thes limit was raised from Rs. 1000 to Rs. 1600 by the Payment of Wages (Amendment) Act, 1982.
The Act of 1976 provided for the payment of wages in cash, by cheque or by crediting the wages to the bank account of a worker after obtaining his written