The Payment of Wages Act, 1936

Introduction
Prior to 1936, there was no law regarding the regulation of payment to workmen. It was as early as 1925 that a Pri ate !ill called the "#eekly Payment !ill" was for the first time introduced in the $egislati e %ssem&ly. 'he !ill was, howe er withdrawn on an assurance from the (o ernment that the matter was under acti e consideration of the (o ernment ar that time. 'his was an attempt to remedy some of the e ils like delay in payment of wages, non)payment of wages, deductions made from wages on account of fines imposed &y the employer. etc. *uring that period the +oyal ,ommission on $a&our in India draw attention to the a&uses in the system of wage payment, and made alua&le recommendation as under1.,hildren should &e e.empted from fines imposed &y the employer. 2. 'he minimum amount which could &e deducted &y way of fine should not e.ceed, in any month, half an anna in the rupee of the worker/s earnings.

031 'he sum realised as fine should &e utilised for some purpose &eneficial to the employees as a class and should &e appro ed &y some recognised authority. 021 % notice specifying the acts and omissions in respect of which fines. may &e imposed should &e posted and any other fine should deemed to &e illegal. 051 %ny deduction made for goods ha ing &een damaged should not e.ceed the wholesale price of the goods damaged. 061 *eductions may &e made on account of pro ision for housing accommodation and of tools and raw materials. 031 Imposition of any fine and deduction made which is not permitted &y law should &e made penal. !ased on these recommendations of +oyal ,ommission on la&our in India, a !ill of Payment of #ages %ct was introduced in the $egislati e %ssem&ly in 1933. It was passed in 1936 and came into force on 21 st 4arch 1936. 'he Payment of #ages %ct was amended in the year 1933,1953,1962 and in 1936 according to the needs of the situation pre ailing at that time. 'he Payment of #ages 0%mendment1 %ct, 1936 e.tends the %ct to the whole of India. Object: 'he o&5ect of the %ct as specified in the pream&le is "to regulate the payment of wages to certain classes of employed persons". 'he he regulation contemplated &y the %ct is two fold6 0i1 the date of payment of wages, and 0ii1 the deductions from wages, as fine or otherwise. In order to ensure payment of wages to persons co ered &y the %ct, certain pro isions ha e &een made in this %ct. 'he !om&ay 7igh ,ourt in %r ind 4ills 8d . 9.+. (adgil 0%I+ 1921 !om. 261 o&ser ed that "the general purpose of the %ct is to pro ide that employed persons shall &e paid wages in a particular form and at regular inter als without any unauthorised deductions". 'he use of e.pression ",ertain classes of persons" in the pream&le applies to persons drawing on an a erage wages less

than rupees one thousand si. hundred per a month :;ec. 1 061 of the %ct<. 'his %ct applies to the payment of wages to persons employed in any factory and to persons employed 0otherwise than in a factory1 on any railway &y a railway administration or either directly or through a su&contractor, &y a person/ fulfilling a contract with a railway administration to coal)mines and plantations. as well as to esta&lishments in which work relating to the construction, de elopment or maintenance of &uildings, roads, &ridges, canals, or relating to operations connected with na igation, irrigation or the supply of water, or relating to generation, transmission and distri&ution of electricity or any other form of power is carried on. 'he ;tate (o ernments are, howe er, authorised to e.tend all or any of the pro isions of the %ct to any industrial esta&lishment. !ut it cannot do so in relation to any industrial esta&lishment owned &y the ,entral (o ernment with o&5ects not confined to one ;tate, without consulting the ,entral (o ernment. Definitions 0;ee. 21 =or the purpose of this %ct 0a1 industrial esta&lishment means any tramway or motor omni&us ser ice6 air transport ser ice6 dock, wharf or 5etty, inland essel mechanically propelled6 mine, >uarry or oilfield6 plantation6 workshop or other esta&lishment in which articles are produced, adapted or manufactured with a iew to there use, transport or sale6 esta&lishment in which any work relating to the construction, de elopment or maintenance of &uildings, roads, &ridges or canals, or relating to operations connected with na igation, irrigation or the supply of water, or relatirigg to the generation, transmission and distri&ution of electricity or any other form of power is &eing arried on6 0&1 wages means all remuneration/s 0whether &y way of salary, allowance or otherwise1 e.pressed in terms of money or capa&le of &eing so e.pressed which would, if the terms of employment, e.press or implied, were fulfilled, &e paya&le to a person employed in respect of his employment or of work done in such employment, and include 0a1 any remuneration paya&le under any. award or settlement &etween the parties or order of a ,ourt6 0&1 any rumuneration to which the person employed is entitled in respect of o ertime work or holidays or any lea e period6 0c1 any additional remuneration paya&le under the terms of employment 0whether called a &onus or &y any other name16 0d1 any sum &y reason of the termination of employment of the person employed is paya&le under"any law. contract or instrument which pro ides for the payment of such sum, whether with or without deductions, &ut does not pro ide for the time within which the payment is to &e made6 0e1 any sum to which the person employed is entitled under any scheme framed under any law for the time &eing in force6 &ut does not include 0i1 any &onus 0whether under a scheme of profit sharing or otherwise1 which

does not form part of the remuneration paya&le under terms of employment or which is not paya&le under any award or settlement &etween the parties or order of a ,ourt6 0ii1 the alue of any house accommodation, or of the supply of light, water, medical attendance or other amenity or of any ser ice e.cluded from the computation of wages &y a general or special order of the state (o ernment6 0iii1 any contri&ution paid &y the employer to any pension or pro ident fund, and the interest which may ha e accrued thereon6 0i 1 any tra elling allowance or the alue of any tra elling concession6 0 1 any sum paid to the employed person to defray special e.penses entailed on him &y the nature of his employment6 or 0 i1 any gratuity paya&le on the determination of employment in cases other than those specified in su&)clause 0d1. Responsibility fo payment of !ages 0;ec. 31 'he responsi&ility for payment of wages to workmen is primarily that of the employer. In the case of factories, the manager6 in industrial esta&lishments, the person responsi&le to employer for super isor. and control of the esta&lishment6 and upon railways, the person nominated &y the railway administration on this &ehalf for the local area, shall &e responsi&le for such payment. In respect of contractors, the intention of the %ct is that the contractor should &e responsi&le for payment where he undertakes actual work for the principal employer, and is in charge of the la&our and that the principal employer or his manager shall &e responsi&le where the contractor merely contracts for the supply of la&our to the employer. Wage"pe io#s 0;ec. 21 ? ery person responsi&le for the payment of. wages must fi. wage)periods in respect of which wages shall &e paya&le, and see that no wage)period e.ceeds one month in any case. 'he penalty for contra ention of this pro ision is fine e.tending to +s. 2@@. Time of payment of !ages 0;ec. 5, 61 In regard to the time of payment of wages the following rules must &e o&ser ed1. In the case of undertakings employing less than one thousand persons wages must &e paid &efore the e.piry of the se enth 0lay, and in other cases &efore the e.piry of the tenth day, after the last day of the wage period in respect of which the wages are paya&le. In the case of persons employed on a dock, wharf or 5etty or in mine, the &alance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case mAy &e, shall &e paid &efore the e.piry of the se eflih day from the day ot such completion 2. % discharged worker must &e paid his wages &efore the e.piry of the second/ working day from the day on which his employment is

terminated. 3. %ll payments of wages must &e made on a working day 0;ec. 51.Penalty for c. a ention is fine tip to +s. 5@@. 2. %ll wage, must &e paid in current coin or currency notes or in &oth or with the written authorisation of the employed person, wages may &e paid &y che>ue or &y crediting the wages in his &ank account 0;ec. 61. Penalty for contra ention is fine up to +s. 2@@. De#$ctions !hich may be ma#e f om !ages 0;ee. 31 It is laid down in this ;ection that notwithstanding the)pro isions of ;ec. 23021 of the Indian +ailways %ct, 1B9@, the wages of employed person shall &e paid to him without deductions of any kind e.cept those authorised &y or under this %ct. ;ec. 23021 of the Indian +ailways %ct pro ides for fine or forfeiture of one month/s pay for &reach of rules made under that ;ection. %ccording to ;ec. 3 of the present %ct, no such deduction can &e ).'rade in respect of any railway worker whose monthly wages do not amount to +s. 16@@ or more. ? ery payment made &y the. employed person to the employer or his agent shall &e deemed to &e a deduction from wages. %ny loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely 0i1 the withholding of increment or promotion 0including the stoppage of increment of an efficiency &ar1 6 0ii1 the reduction to a lower post or time)scale or to a lower stage in a time)scale6 or 0iii1 suspension6 shall not &e deemed to &e a deduction from wages in any case where the rules framed &y the employer for the imposition of such penalty are in conformity with the re>uirements as specified &y the ;tate (o ernment. *eductions from the wages of an employed person shall &e made only in accordance with the pro isions of this %ct, .and may &e of the following kinds only- 011 fines6 021 for a&sence from duty6 031 for damages or loss6 021 for house accommodation6 051 for amenities and ser ices6 061 on account of ad ances which the employer is compelled to make, including ad ances for tra elling allowance or con eyance allowance, or for ad5ustment of o er)payment of wages6 031 on account of payments to certain pro ident funds, to cooperati e societies, or premium for life insurance6 0B1 for reco ery of loans made from any fund constituted for the welfare of la&our6 for reco ery of loans granted for house)&uilding6 091 for income)ta. paya&le &y the employed person6 01@1 under an order of a ,ourt6 0111 for payment to cooperati e societies6 0121 made with the written authority of the worker in furtherance of any #ar ;a ings scheme appro ed &y the ;tate (o ernment for the purchase of securities of the (o ernment of India6 0131 for payment of insurance premia6 0121 for reco ery of losses sustained &y a railway administration on account of acceptance &y the employed person of counterfeit or &ase coins, mutilated or forged currency notes6 0151 other losses sustained &y a railway administration through the

negligence of an employed person. 'he total amount of deductions which may &e made in any wage)period from the wages of any employed person shall not e.ceed 0i1 in cases where such deductions are wholly or partly made k1r payment to cooperati e societies, 35 per cent of such wages6 and 0ii1 in any other case, 5@ per cent of such wages. %ines 0;ec. B1. 'he following rules apply to deductions &y way of fines I =ines can &e imposed only for acts and omissions specified in notices appro ed &y the ;tate (o ernment, or the ,hief Inspector of =actories. in the case of factories, or the ;uper isor in other cases. 2. Co fine can &e imposed on any employed person unless he has &een gi en an opportunity of showing cause against the fine. 3. Co fine can &e imposed any employed person who is under the age of 15 years. 2. 'he total amount of fine which may &e imposed in any wage)period on any employed person must not e.ceed an amount e>ual to half)an) anna in the rupee of the wages paya&le to him in respect of that wage period. 5. 'he fine shall &e deemed to ha e &een imposed on the day of the act or omission in respect of which it as imposed and cannot &e reco ered from the person &y installments or after the e.piry of 6@ days front the day on which it was imposed. 6. %ll the lines so realised or realised must &e recorded in a prescri&er/ register and must &e credited to a fine fund. . 3. 'he proceeds of the fine fund must &e utilised only for such purposes &eneficial to the workers of the factory or the esta&lishment as are appro ed &y the prescri&ed authority. Penalty for contra ention of any of these rules in fine tip to +s. 5@@, *eductions for a&sence from duty 0;ee. 91 *eductions for a&sence from duty are permitted &ut the amount of such deductions cannot e.ceed the sum 2hic) the person #ould ha e &een entitled to if he had worked the same num&er of days for which the deduction is made6 pro ided that, su&5ect to any rules made in, this &ehalf /&y the ;tate (o ernment, i1/ ten or more employed persons acting in concert a&sent themsel es, without due notice and without reasona&le cause, such deduction from any such person may include such amount not e.ceeding his wages for B days as may &y any such terms &e due to the employer in lieu of the due notice. !y an amending %ct of 1933 employers are permitted to withhold wages in die case of "stay)in" strikes. Penalty for contra ention is fine up to +s. 5@@, *eductions for damage or loss 0;ee. 1@1 *eduction for damage to or loss of good e.pressly entrusted to the employed person for custody, or for the loss of money for which he is re>uired

to account are permitted only where such damage or loss is directly attri&uta&le to his neglect or default and only after he has &een gi en an opportunity of showing cause against the deduction. ;uch deductions arc not to e.ceed the amount of the damage or loss to the employer and must &e recorded in a prescri&ed register. Penalty for contra ention is fine tip to +s. 5@@. De#$ctions fo se &ices en#e e# '(ec) 11* *eductions for house accommodation and for amenities and ser ices rendered &y the employer are permitted, &ut only when a". employed person has accepted the house accommodation, amenity or ser ice as a term of employment or otherwise, and shall not e.ceed an amount e>ui alent to their alue. =urthermore, the deductions in respect of amenities and ser ices can &e made su&5ect only to the following conditions1. 'he appro al of the ,hief Inspector of =actories shall &e o&tained in writing to compulsory or general deductions from wa es for any amenities or ser ices pro ided &y the employer. . 2. 'he kind and standard of ser ices and amenities pro ided shall &e su&5ect to the appro al of the ,hief Inspector of =actories. 3. 'he ma.imum deduction shall not e.ceed half the wages at my period. Penalty for the contra ention of any pro isions of this ;ection is /me up to +s. 5@@. 'he house accommodation, for which deductions are now allowed, may &e supplied &y the employer or &y (o ernment or &y any housing &oard set up under law, e.g., under the ;u&sidised Industrial 7ousing ;cheme 0whether the (o ernment or the &oard is the employer or not1 or any other authority engaged in the &usiness of su&sidising house)accommodation. De#$ctions fo eco&e y of a#&ances '(ec) 1+* *eductions for reco ery of ad ances or for ad5ustment of o er)payments of wages can &e made only on the following conditions1 . %n ad ance of money made &efore employment must &e reco ered from the first payment of wages, &ut ad ances gi en for tra elling e.penses can in no case &e reco ered. 2. %d ances of wages not already earned are su&5ect to rules made &y ;tate (o ernments, which are as follows0i1 an ad ance of wages not already earned shall not, without the pre ious permission of an Inspector, e.ceed an amount e>ui alent to the wages earned &y the employed person during the preceding two 0!om&ay four1 calendar months, or if he has not &een employed for that period, mice the wages he is likely to earn during he two 04um&ai four1 su&se>uent calendar months6 0ii1 the ad ance may &e reco ered in instalments &y deductions from wages spread o er not more than twel e 0!om&ay eighteen1 months. Co instalment shall e.ceed one)third, or where the wage., of any wage)period are not more than twenty rupees, one fourth of the wages for the wage)period in respect of

which the deduction is made6 0iii1 the amounts of all ad ances sanctioned and the payment thereof shall &e enturd in a prescri&ed register6
0i 1 0!om&ay only1 the rate of interest charged for ad ances granted shall not e.ceed 6 per cent per annum. Penalty for contra ention is fine up to +s. 5@@. Othe De#$ctions Pe mitte# by the Act '(ees) 1+"A an 13* 'he %ct also permits the following deductions from the wages of an employee- 1 . deductions or Income)ta. paya&le &y 0lie employed person6 2. deductions re>uired to &e made &y order of a ,ourt or other competent authority6 3. deductions for contri&ution to and repayment of ad ance from any recognised or appro ed fund6 2. deductions, made with the written authorisation of the employee for payment of any premium oil his life insurance policy to the $ife Insurance ,orporation of India, or for tile purchase Df ;e,8rilie5 of the (o ernment of India or of any ;mile (o ernment or for &eing deposited in any Post Dffice ;a ing !ank in furtherance of any sa ings scheme of any such (o ernment6 5. deductions, made with tile written authorisation of the employed person, for contri&ution to :Prime 4inister/s National +elief =und or to such other =und as the ,entral (o ernment may, &y notification in tile Dfficial (aEelle, specify. Penalty for contra ention is fine up to +s. 5@@. ,nspecto s '(ec)1-* 'he administration and enforcement of the %ct Is the responsi&ility of the ;tate Inspectors of =actories in the case of factories within their local limitA, and that of the ,hief $a&our ,ommissioner 0,entral1 in the case of persons employed on railway 0other than in railway factories1. 'he Inspector or tile $a&our ,ommissioner may, at all 1 ea51 @11ald, hours, $iner on any premises, and make such e.amination of register or document relating to the calculation and payment of wages, and take on the spot otherwise such e idence of any person, and e.ercise such other powers of inspection, as he may deem necessary for carrying out the purpose of this %ct ;ec.12)% pro ides that e ery employer shall afford an Inspector all reasona&le facilities for making an entry, inspection, super ision or in>uiry under the %ct. .laims fo ! ongf$l #e#$ctions '(ee) 1/* 'he ;tate (o ernment may either appoint a Presiding Dfficer of any $a&our ,ourt or Industrial 'ri&unal or a ,ommissioner for #orkmen/s ,ompensation or other Dfficer with 5udicial e.perience 0,i il Fudge or 4agistrate1 to hear and decide all claims arising out of deductions from the wage" and delay in payment of wages, #here any wrongful deductions ha e &een made from file wages of a person, or any payment of wages has &een delayed, such person himself, or my legal practitioner or any official of a registered trade union authorised in writing to act on his &ehalf, or any Inspector under this %ct, or any other person acting with the permission or the authority may, within twel e months of the dale of deduction or the date on

which tile payment of wages was due, apply to die authority for a direction. %li application presented after the e.piry of twel e months may he admitted &y the authority for sufficient cause

Dn admitting the application, the authority will gi e an opportunity 0@ the applicant and the employer or any person responsi&le for tile payment of wages to &e heard, and on &eing satisfied, direct the employer or 0lie other person to pay to the claimant the amount wrongfully withheld plus compensation tip to tell times that sum in the case of deduction, and not e.ceeding +s. 25 per head in the case of delay. !ut the payment of compensation for delayed wages will net &e ordered if the delay as, due to 0a1 bona fide error or bona fide dispute as6 to the amount paya&le to the employee6 or 0&1 the occurrence of an emergency or the e.istence of e.ceptional circumstances, such that the person responsi&le for the payment of the wages was una&le, though e.ercising reasona&le diligence, to make prompt payment6 or 0c1 the failure of die employed person to apply for or accept payment. %n amount directed to &e paid &y the employer to the employed person may &e reco ered as if it were a fine imposed &y a magistrate. 'he authority may refuse to entertain the application, if after gi ing the applicant an opportunity to &e .heard, the authority is satisfied that 0a1 the applicant is not entitled to present an application6 or 0&1 the delay in payment of wages was e.cusa&le, as pro ided a&o e6 or 0c1 the applicant shows no sufficient cause for making a direction for payment6 or 0d1 the application is insufficiently stumped or is otherwise incomplete. If the authority hearing the application is satisfied that it was either malicious or e.atious, the authority may direct the applicant to pay a penalty not e.ceeding +s. 5@ to the employer. (ingle application in espect of claims f om $npai# g o$p 0;ec. 161 ?mployed persons are said to &elong to the same unpaid group 0as e.plaind in ;ec. 261 if 0i1 they are &orn on the same esta&lishment, 0ii1 deductions ha e &een made from their wages in contra ention of the %ct for the same cause and during the same wage period0s1, or 0iii1 their wages for the same wage periods ha e remained unpaid after the day fi.ed &y section 5. ;ec. 16 1 021 lays down that a single application may &e presented under ;ec. 15 on &ehalf or in respect of any num&er of employed persons &elonging to the same unpaid group, and in such case e er person on whose &ehalf such application is presented may &e awarded ma.imum compensation to the e.tent specified in ;ec. 15031 of the %ct. ;ec. 16031 lays down that if se eral applications are pending, presented under ;ec. 15 &y employees &elonging to the same unpaid group, the %uthority can do with them as if it was a single application &y an unpaid group.

Appeal 0;ec. 131 'his section pro ides that an appeal may &e preferred from the following orders or directions of the %uthority0i1 an order directing the employer or the persons responsi&le for payment of wages. to refund the delayed wages6 0ii1 an order directing payment of compensation to the employee under ;ec. 5 031 0iii1 an order imposing penalty whether on the employee or the employer under ;ec. 5 021 %n appeal under this section can &e made within 3@ days of the date on which the order or direction was made in Presidency town &efore the ,ourt of small causes and elsewhere &efore the *istrict ,ourt within whose 5urisdiction the industrial esta&lishment is situated. %n appeal may &e filed &y the employer or other person responsi&le for the payment of wages under ;ec. 3, if. 0i1 the total sum directed to &e paid &y way of wages and compensation e.ceeds +s. 3@@G) or 0ii1 such direction has the effect of imposing on the employer or the other person a financial lia&ility e.ceeding +s. 1@@@G). %n appeal may &e final &y an employed person or any legal practitioner or any official of a registered 'rade 8nion authorised in writing to act on his &ehalf or any inspector under this %ct, or any other person permitted &y ihe authority to make an application under ;ec. 150216 if thA total amount of wages claimed to ha e &een with held0i1 from employed person e.ceeds +s. 2@G)6 or 0ii1 from the unpaid group to which the employed person &elongs or &elonged e.ceeds +s. 5@G %n appeal may also &e preferred &y any person directed to pay a penalty under ;ec. 15021 of the %ct. Co appeal shall lie as aforesaid unless the memorandum of appeal is accompanied &y a certificate &y the authority to the effect that the appellant has deposited the amount paya&le under the direction appealed against. ;ection 13021 lays down that any order dismissing either or wholly or in part on application made under ;ec 15021 or a direction made under ;ec 15031 or ;ec 15021 shall &e final unless an appeal under ;ec. 13011 is preferred against any such order or direction. ;ec. 13031 pro ides that where an employer prefers an appeal under this section, the authority against whose decision the appeal is filed may, pending the decision of the appeal, with hold payment of any sum in deposit with it. #hese a direction to withhold payment such sum is made &y the ,ourt of %ppeal, such authority shall, and in other cases, may withhold payment of any sum so deposited wi-h it. ;ec. 13021 pro ides that the ,ourt of appeal may in its discretion, su&mit any >uestion of law for the decision of the 7igh ,ourt. #here any such

>uestion in so referred, the ,ourt of %ppeal shall decide the matter in conformity with the decision of the 7igh ,ourt. ,onditional attachment of property of employer or other person who is responsi&le for payment of wages 0;ec. 13 %1 'his section makes pro isions for conditional attachment of so much of the property of the ernployer or orher person responsi&le tor payment of wages as is, in the opinion of the authority or the ,ourt, sufficient to satisfy the amount which may &e paya&le under the direction. 'he conditional attachment may &e made under the following circumstances. 0a1 #hen the application under ;ec. 15021 or appeal under ;ec. 13 has &een filed &y the employed person or any official of a registered 'rade 8nion authorised in writing to act on his &ehalf, or any legal practitioner. or any Inspector under ;ec. 15 021 of the %ct. . 0&1 #hen the authority or the ,ourt is satisfied that the employer or other person responsi&le for the payment of wages under ;ec. 3 is likely to e ade payment of any amount that may &e directed to &e paid under ;ec. 15 or ;ec. 13. 0c1 #hen the authority or the ,ourt is of the opinion that the ends of 5ustice would &e defeated &y the delay. 7owe er, under the circumstances mentioned a&o e, an order of attachment passed for the payment of wages, the employer or the person responsi&le for payment shall &e gi en an opportunity if &eing heard. Po!e of a$tho ity appointe# $n#e (ec) 1/ '(ec) 10* ? ery %uthority appointed under ;ec. 15 of the %ct shall ha e all the powers of a ,i ii ,ourt under the ,ode of ,i il Procedure, 19@B for the purpose of 0a1 taking e idence6 0&1 enforcing the attendance of witness6 and 0c1 compelling the production of documents. =urther, any such %uthority sAall &e deemed to &e a ,i il ,ourt for all purposes of ;ec. 195 of ,ode of ,riminal Procedure, 1B9B. 1,(.233A42O5( PRO6,(,O4( O% T72 A.T 1) 1aintenance of egiste s an# eco #s '(ec) 13"A* ;ec 13)% lays down that e ery employer shall maintain such registers and records in the prescri&ed manner containing the following particulars0i1 particulars of person employed &y him, 0ii1 the work performed &y the persons employed, 0iii1 the wages paid to the persons employed, 0i 1 the deductions made from the wages of the persons employed, . 0 1 receipts gi en &y the persons employed6 and, 0 i1 such other particulars, if any Penalty fo offences $n#e the Act '(ec) +8* %ny person responsi&le for contra ention of the following pro isions of the %ct,

for the payment of wages to an employed person, shall &e punisha&le with fine e.tending to not less than +s. 2@@) &ut to a ma.imum of +s. 1@@@) 0a1 failure to maintain such register or record6 or 0&1 willful refusal or neglect without lawful cause to furnish such informatior or return6 or 0c1 willfully furnishing or causing to &e furnished any information or return which he knows to &e false6 or 0d1 refusal to answer or willfully gi ing a false answer to any >uestion necessary for o&taining any information re>uired to &e furnished under this %ct 'he following offences shall &e punisha&le with a minimum fine of +s. 2@@G) &ut e.tend to +s. 1@@@G) under ;ec. 2@021 of the %ct. 0a1 wilfully o&structing an Inspector in the discharge of his duties under the %ct6 or 0&1 refusal or wilfully neglecting to afford an Inspector any reasona&le facility for making any entry, inspection, e.amination, super ision or in>uiry authorised &y or under this %ct in relation to any railway, factory or industrial or other esta&lishment or 0c1 wilful refusal to produce, on demand of an inspector, any register or other document kept in pursuance of this %ct6 or 0d1 pre enting or attempting to pre ent or doing anything which he has any reason to &elie e is likely to pre ent any person from appearing &efore or &eing e.amined &y an Inspector acting in pursuance of his duties under this %ct. ;ection 2@051 lays down that if any person who has &een con icted of any offence punisha&le under this %ct, is again guilty of in ol ing contra ention of the same pro ision. 7e shall &e punisha&le on su&se>uent con iction with imprisonment for a term which shall not &e less than one month, &ut which may e.tend to si. months with fine, which shall not &e less than +s. 5@@G), &ut may e.tend to +s. 30001-. !ut for the purposes of this su&)section, no cogniEance shall &e taken of any con iction made than two years. %ccording to ;ec. 2@0616 if any person fails or wilfully, neglects to pay the wages of any employed person &y the date fi.ed &y the authority in this &ehalf, he shall without pre5udice to any other action that may &e taken against him, &e punisha&le with additional fine, which may e.tend to +s. 1@@G) for each day for which such failure or neglect continues. P oce#$ e in t ial of offences '(ec +1* 'his section pro ides that &efore any ,ourt shall take cogniEance of a complaint against any person for an offence under this section, the following conditions must &e fulfilled6 0i1 an application in respect of the facts constituting of offence has &een presented under ;ec. 15 6 0ii1 the application must ha e &een

granted wholly or in part, and 0iii1 the authority empowered under ;ec. 15 or the %ppellate ,ourt granting the application must ha e sanctioned the making of the complaint for such offence. ;ec. 21 021 pro ides furthers that &efore sanctioning the making of a complaint against any person for an offence, the authority empowered under ;ec. 15 or the %ppellate ,ourt, as the case may &e, shall gi e an opportunity to such person of showing cause against the granting of such sanction. 'he sanction shall not &e granted if such person satisfied the authority or ,ourt that his default was due to 0a1 a &ona)fide error or &ona)fide dispute as to the amount paya&le to the employed person6 or 0&1 the occurrence of an emergency or the e.istence of e.ceptional circumstances6 or 0c1the failure of the employed person to apply for Dr accept payment ;ec 21 031 pro ides that no ,ourt shall take cogniEance of a contra ention of any rule made under ;ec 26, e.cept on a complaint made &y or with the sanction of an Inspector under %ct. ;ec 21 021 pro ides that in imposing any fine for an offence under ;ec. 2@011 the ,ourt shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under ;ec. 15. 9a fo suit (Sec.22) 'his section pro ides that a suit for the reco ery of wages or of any wrongful deduction from wages shall not &e entertained &y any ,ourt under the following circumstances. 0a1 'he amount claimed forms the su&5ect of an application under sec. 15 which has &een presented &y the plaintiff and is pending &efore the authority appointed under this section or of an appeal under ;ec 136 or 0&1 'he amount claimed had formed the su&5ect of a direction under ;ec. 15 in fa our of the plaintiff6 or 0c1 'he amount claimed had &een ad5udged in any proceeding under ;ec. 15 not to &e owed to the palintiff6 or 0d1 'he amount claimed could ha e &een reco ered &y an application under ;ec. 15 Protection of action taken in good-faith (Sec.22-A) % suit, prosecution, or the other legal proceeding shall not lie against the (o ernment or any officer of the (o ernment for any thing which is in good)faith done or intended to &e done under this Act. Contracting Out (Sec. 231 %ny contract or agreement whether made &efore or after the commencement of

this %ct, where&y an employed person relin>uishes any right conferred &y this %ct shall &e null and oid in so far as it purports to depri e him of such right. ;ec 23 only pre ents an employee from contracting away the rights which are gi en to him &y the %ct and that it does not pre ent him from entering into an agreement ad antageous or &eneficial) to him. 0,ase- =.#. 7eilgers ,o. . Cagesh ,handra ,hakrawarti, %I+ 1929, =, 1221 In a decision of the ,ourt 0In *inaram ,hutiya . *i isional 4anager, %I+ 195B1, it was held that the mere deduction of ser en1 allowance either partial or whole cannot &e said to contra ene ;ec. 23 of the %ct. It was further o&ser ed in this case that a contract alidly entered into &etween the employer and the employee &y which the contract of ser ice has &een modified as regards the amount of wages is not hit &y ;ec. 23. 'his %ct confers the following su&5ect- 0i1 to recei e wages6 0ii1 to recei e them at the proper time specified in the %ct6 and 0iii1 to recei e from without deduction. 'he employer and the employees may, &y mutual agreement, change the scale of wages, and such agreement does not amount to contracting out within the pre iew of ;ec. 23 of the %ct. It was held )that ;ec 23 of the Payment of #ages %ct does not pre ent the employee from entering into an agreement ad antageous or &eneficial to him. *eduction from wages is for the &etterment of employees. Application of Act to ail!ays, mines an# oil fiel#s '(ec) +-* 'he powers of this %ct conferred upon the ;tate (o ernment shall, in relation to any oil fields, &e power of the ,entral (o ernment. Display by notice of abst act of the Act '(ee +/* 'he person responsi&le for the payment of wages to person employed in a factory or an industrial or other esta&lishment shall &e displayed a notice containing such a&stracts of this %ct and the rules made thereunder in ?nglish and in the language of the ma5ority of the persons employed there, as may &e prescri&ed. Payment of $n#isb$ se# !ages in cases of #eath of employe# pe son '(ec) +/A* ;u&5ect to the other pro isions of the %ct, all amounts paya&le to an employed person as wages shall &e paid to 0a1 the person nominated &y him in this &ehalf in accordance with the rule made under the %ct or 0&1 where no such nomination has &een made or where for any reasons such amounts cannot &e paid to the person so nominated &e deposited with the prescri&ed authority who shall deal wit the amounts so deposited in such manner as may &e prescri&ed, so that the employer shall &e discharged of his lia&ility to pay those wages. R$le"ma:ing po!e '(ec) +6* 'he ;tate (o ernment may make the rules to regulate the procedure to &e

followed &y the %uthorities and ,ourts referred to in ;ec. 15 and 13. 'he rules made under ;ec. 26 of the %ct may0a1 re>uire the maintenance of such registers, records, returns and notices, etc6 . 0&1 re>uire the display in conspicuous place on premises where the employment is carried on6 0c1 pro ides for the regular inspection of the weights, measures, etc. 0d1 prescri&e the authority competent to appro e the omission in respect of which fines may &e imposed. 0e1 prescri&e the procedure for the imposition of fines. 0f1 prescri&e the e.tent to which ad ances may &e made and the instalments &y which they may &e reco ered6 including the rate of interest paya&le the reon. 0g1 prescri&e the powers of inspectors. 0h1 prescri&e the amount of ,ourt fees paya&le in respect of any proceedings under the %ct. ? ery rule made &y the ,entral (o ernment under this section shall &e laid &efore each 7ouse of Parliament. )))))))))