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Unit 8: Payment of Wages Act, 1936

 In industrial or other establishment a person responsible to the employer for the supervision Notes
and control of the industrial or other establishment and

 Upon railways (otherwise than in factories), if the employer is the railway administration
and the person nominated in this behalf.

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. (AIR 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 ...........................

8.3 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:

 persons employed in any factory;
 persons employed (otherwise than in factory) upon any railway by a railway
administration, either directly or, through a sub-contractor, by a person fulfilling a contract
with railways administration; and
 persons employed in an industrial or other establishment specified in sub-clauses (a) to
(g) of clause (iii) of section.

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).
The Act is applicable to the persons employed in any factory, railway administration, industrial
or other establishments, i.e. tramway service, motor and air transport service, plantation,
workshop of other establishment in which articles are produced, adapted or manufactured, with
a view to their use, transport or sale, establishments in which any work relating to the construction,
development or maintenance of buildings, roads, bridges or canals, or relating to operations
connected with irrigation or supply of water or relating to generation, transmission and
distribution of electricity.

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