Page 149 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes It is applicable to any factory, any railway establishment and any industrial or other establishment
like tramway service, motor transport service, air, oilfield, plantation, workshop, or other
establishment producing, adapting or manufacturing any article, establishments engaged in
construction, development and maintenance of buildings, roads, bridges or canals, navigation,
irrigation or water supply, transmission, generation and distribution of electricity/power and
any other establishment notified by the Central or a State Government. The Act is not applicable
to persons whose wages are 1600 or more per month.
It applies in the first instance to the payment of wages to persons employed in any factory, to
persons the employed (otherwise than in a factory) upon any railway by a railway administration
or, either directly or through a sub- contractor, by a person fulfilling a contract with a railway
administration and to persons employed in an industrial or other establishment specified in
sub- clauses (a) to (g) of clause (ii) of section 2.
The State Government may, after giving three months’ notice of its intention of so doing, by
notification in the Official Gazette, extend the provisions of [this Act] or any of them to the
payment of wages to any class of persons employed in [ any establishment or class of
establishments specified by the Central Government or a State Government under sub- clause
(h) of clause (ii) of section 2] provided that in relation to any such establishment owned by the
Central Government, no such notification shall be issued except with the concurrence of that
Government.

Did u know? Before doing so the State Government is required to:

 Issue three months’ notice of its intention to do so;
 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, 1938.

Self Assessment

Fill in the blanks:
5. The Payment of Wages Act, 1936 came into operation of ...........................
6. For the purpose of calculating salary, a ........................... refers to any one of the months in
the calendar year.

8.4 Method for Computation and Fixing of Wages

There are two methods for computation and fixing of wages:

8.4.1 Monthly Wages

For the purpose of calculating salary, a ‘month’ or ‘complete month’ refers to any one of the
months in the calendar year.

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