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Unit 6: Payment of Wages Act, 1936
(d) Where the employment of any person is terminated by or on behalf of the employer the Notes
wages earned by him shall be paid before expiry of the second working day from the date
on which his employment is terminated.
Notes This section relates to time of payment of wages which are to be paid within
seven days after the last day of the wage period except in establishments employing 1000
or more persons which are permitted to pay within ten days. All payments of wages are
to be made on a working day. The penalty for a breach of the provisions of this section is
provided under section 20(1) of the Act namely, a fine upto five hundred rupees.
6.5.3 Exemption from Compliance with the Time Limit for Payment of
Wages
The Act empowers the state Govt. to exempt , the person responsible for the payment of wages to
persons employed upon in railways (otherwise than in factory), or to persons employed as daily-
rated workers in the control, public works Department or the state from the operation of this
section. However, no such order shall be made without consultation of the central Government.
In case of daily-rated workers.
Self Assessment
Fill in the blanks:
9. Every person responsible for the payment of wages must fix ................... .
10. The penalty for contravention of the provision is fine up to ` ................... .
11. No wage-period exceeds one month in any case
6.6 Deduction from Wages
The following shall be deemed to be deduction from wages:
1. Every payment made by the employed person to the employer or his agent.
2. Any loss of wages resulting from the imposition, for good and sufficient cause, upon a
person employed, of any of the following penalties:
z The withholding of increment or promotion (including the shortage of increment at
an efficiency bar);
z The reduction to a lower post or time scale or to a lower stage in a time scale; or
z Suspension;
6.6.1 Deduction which may be made from Wages
Deduction authorized under the Act is enumerated in section 7(2). Any other deduction is
unauthorized. Further, the authorized deduction can be made only in accordance with the
provisions of the Act.
(i) fines
(ii) deduction for absence from duty;
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