Page 102 - DCOM207_LABOUR_LAWS

Unit 6: Payment of Wages Act, 1936

Notes

Notes This section lays down that when a manager is appointed in a factory,
industrial establishment or railway, he is responsible for payment of wages and section
19 enacts when the authority under section 15 is unable to recover from such a manager
or person responsible under section 3 any amount directed to be paid, then such amount
shall be recovered from the employer. Bombay High Court held that under section 15
proceedings are to be instituted against only one person whether he is a manager or the
employer but not against both. If the owner of the factory appoints a manager he alone
should be made party to an application under section 15 (3) for a claim for delayed wages.
The liability of the owner arises only when it is subsequently found that the whole or
part of the amount cannot be recovered from the manager. (A. I. R. 1940, Bom. 87). If the
persons are employed by a contractor, the contractor is responsible for the payment of
wages.

Self Assessment

Fill in the blanks:

3. All wages shall be paid in current legal tender, that is, in current ..................... or both.
4. All payment of wages shall be made on a ..................... .

6.3 Application of the Act

The Payment of Wages Act, 1936 extends to the whole of India. It came into operation of 28th
March, 1937. It applies in the first instance to the payment of wages to:

l z persons employed in any factory;
l z persons employed (otherwise than in factory) upon any railway by a railway administration,
either directly or, through a subcontractor, by a person fulfilling a contract with railways
administration; and

l z persons employed in an industrial or other establishment specified in sub-clauses (a) to (g)
of clause (ii) of section 2.
The Act empowers the state government to extend the application of the whole or a part of the
Act to any class of persons employed in the establishment or class of establishments specified by
the Central/State Government under Section 2(h) (ii).

Did u know? Before doing so the State Government is required to:
l Issue three months notice of its intention to do so;
l Issue a notification of the extension in the Official Gazette. But in relation to
establishment owned by the Central Government, no such notification shall be issued
with the concurrence of that Government.

Task Find out the salary static and procedure and competent authority which deal with
employment matters in the Payment Wages Act 1936.

LOVELY PROFESSIONAL UNIVERSITY 97