Page 154 - DMGT306_MERCANTILE_LAWS_II

Unit 8: Payment of Wages Act, 1936

2. A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the Notes
premises which the employment is carried on or in the case of persons employed upon a railway
(otherwise than in a factory), at the prescribed place or places.
3. The fine shall not be imposed on any employed person unless he has been given an opportunity
of showing cause against the fine.

4. The total amount of fine which may be imposed in any one wage-period on any employed
person shall not exceed an amount equal to three percent of the wages payable to him in respect
of that wage-period.
5. No fine shall be imposed on any employed person who is under the age of fifteen years.
6. No fine shall be imposed on any employed person shall be recovered from him by installments
or after the expiry of sixty days from the day on which it was imposed.
7. Every fine shall be deemed to have been imposed on the day of the Act or omission in respect
of which it was imposed.

8. All fines and all realization thereof shall be recorded in a register to be kept by the person
responsible for the payment of wages under Section 3 in such from as may be prescribed; and all
such realizations shall be applied only to such purposes beneficial the persons employed in the
factory or establishment as are approved by the prescribed authority.

Notes Fines can be imposed on an employed person in respect of acts and omissions
which are specified with the previous approval of the appropriate Government by notice
exhibited in the factory. No fine can be imposed for an act or omission which is not
contained in the notice and any such fine would be an unauthorised deduction. Secondly,
before a fine can be imposed, an opportunity of showing cause against the fine should be
given to the employed person and the procedure prescribed for the imposition of fine
must be followed. Thirdly, the total amount of fine in one wage period must not exceed an
amount equal to half anna in the rupee of wages payable to him in respect of the wage
period. The fine imposed must be recovered in one lump sum. It cannot be recovered in
installments nor can it be recovered after sixty days from the day on which the act or
omission in question was committed. All fines are to be applied only for such purposes
beneficial to the staff as may be approved by the prescribed authority.

All the amounts realized in our organization are credited to a common fund maintained for the
staff as a whole and are applied for common welfare of the employees as a whole increasing the
Quality work life of the employees.

Example: When the persons employed upon of in any railway, factory or industrial
establishment, are part only of a staff employed under the same management, all such realisations
may be credited to a common fund maintained for the staff as a whole, provided that the fund
shall be applied only to such purposes as are provided by the prescribed authority.

8.6.3 Deductions for Services Rendered

Deductions for house accommodation and for amenities and services rendered by the employer
are permitted, but only when an employed person has accepted the house accommodation,
amenity or service as a term of employment or otherwise, and shall not exceed an amount

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