Page 291 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations Pooja, Lovely Professional University

Notes Unit 12: Payment of Wages Act, 1936

CONTENTS
Objectives
Introduction

12.1 Object of the Act
12.1.1 Scope and Coverage
12.1.2 Definitions (Sec. 2)

12.1.3 Responsibility for Payment of Wages
12.2 Illegal Deductions
12.3 Inspectors and their Powers
12.3.1 Who may File Application and When?
12.3.2 Procedure and Directions

12.4 Offences and Penalties (Sec. 20)
12.5 Cognizance and Trial of Offences (Sec. 21)
12.6 Summary

12.7 Keywords
12.8 Self Assessment
12.9 Review Questions
12.10 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss Payment of Wages Act, 1936
Describe concept of illegal deductions

Introduction

In the early days of industrial revolution, workers were exploited with exorbitant delays in
payment of wages, arbitrary deductions and other unfair practices on the part of employers.
Delay in the payment of wages, deductions of two days’ wages for one day’s absence, heavy
fines for small omissions and commissions, were quite common. Irregularities committed by
employers were brought to the notice of the Royal Commission of Labour in India. In the report
submitted in 1931, the Commission pointed out wide prevalence of such unfair practices in
regard to the payments of wages due to workers, such as non-payment of wages, short payment,
irregular payment, payment in kind rather than in cash, short measurement of work of piece
rate workers, and excessive fines and deductions. The Commission stressed the need for protecting
the earned wages of workers by elimination of these practices. The Commission also observed
that the purpose of laying down a machinery for evolving a proper and equitable wage structure
is defeated if malpractices in regard to payment of wages are not checked.

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