Page 99 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Introduction

In the previous unit, we dealt with Industrial Dispute Act. The Payment of Wages Act, 1936
is a central legislation which has been enacted to regulate the payment of wages to workers
employed in certain specified industries and to ensure a speedy and effective remedy to them
against illegal deductions and/or unjustified delay caused in paying wages to them. It applies
to the persons employed in a factory, industrial or other establishment or in a railway, whether
directly or indirectly, through a sub-contractor. Further, the Act is applicable to employees
drawing wages upto ` 1600 a month. The Central Government is responsible for enforcement of
the Act in railways, mines, oilfields and air transport services, while the State Governments are
responsible for it in factories and other industrial establishments. The purpose of this Unit is to
enable the students to comprehend basic expressions. At the end of this unit you should be able
to understand various concepts regarding the payment of wages to workers.

6.1 Definitions

Prior to 1936, there was no law regarding the regulation of payment to workmen. It was as early
as 1925 that a Private Bill called the “Weekly Payment Bill” was for the first time introduced in the
Legislative Assembly. The Bill was, however withdrawn on an assurance from the Government
that the matter was under active consideration of the Government at that time. This was an
attempt to remedy some of the evils like delay in payment of wages, non-payment of wages,
deductions made from wages on account of fines imposed by the employer etc. For the purpose
of this Act:
(a) industrial establishment means any tramway or motor omnibus service; air transport
service; dock, wharf or jetty, inland vessel mechanically propelled; mine, quarry or oil
field; plantation; workshop or other establishment in which articles are produced, adapted
or manufactured with a view to there use, transport or sale; establishment in which any
work relating to the construction, development or maintenance of buildings, roads, bridges
or canals, or relating to operations connected with navigation, irrigation or the supply of
water, or relating to the generation, transmission and distribution of electricity or any other
form of power is being carried on;
(b) wages means all remuneration’s (whether by way of salary, allowance or otherwise)
expressed in terms of money or capable of being so expressed which would, if the terms
of employment, express or implied, were fulfilled, be payable to a person employed in
respect of his employment or of work done in such employment, and include :

(i) any remuneration payable under any award or settlement between the parties or
order of a Court;
(ii) any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period;
(iii) any additional remuneration payable under the terms of employment (whether
called a bonus or by any other name);

(iv) any sum 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;
(v) 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:
 z any bonus (whether under a scheme of profit sharing or otherwise) which
does not form part of the remuneration payable under terms of employment

94 LOVELY PROFESSIONAL UNIVERSITY