Page 295 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 5. If the employment is terminated due to the closure of establishment for any reason other
than a weekly or other recognised holiday, wages will be paid before the expiry of second
working day from the day on which employment is being terminated.
6. The State Government may, by a general or special order, exempt the person responsible
for the payment of wages from the operation of the above provisions in certain cases.

7. All payment of wages shall be made on a working day. (Section 5).

Medium of Payment of Wages

All wages shall be paid in current coin or currency notes or both. The employer may, after
obtaining the written permission of the employed person, pay him wages either by cheque or
by crediting the wages in the bank account. (Section 6).
Deduction from Wages

The wages of an employed person shall be paid to him without deductions of any kind, except
those authorised under the Payment of Wages Act. This is notwithstanding the Provisions of Sec.
47 of the Indian Railways Act, 1890 (Sec. 7).

Kinds of Deductions

The following kinds of deductions are permitted under the Act:
1. Fines (Sec. 8): Provisions regarding fines are as follow:
a) No fine shall be imposed on any employed person, except in respect of such acts’
omissions on his part as the employer, with the previous approval of the State
Government or of the prescribed authority, may have been specified by a notice.
b) The notice specifying the acts and omissions for which fines may be imposed shall
be exhibited in the prescribed manner on the premises or the place in which the
employment is carried on.

c) No fine shall be imposed on an employed person until he has given an opportunity
of showing cause against the fine.
d) The total amount of fine in any one wage period on any employed person shall not
exceed three per cent of the rupee wages payable to him in respect of that wages
period.

e) No fine shall be imposed on a person who is below the age of fifteen years.
f) No fine shall be recovered from the employed person by installments or after the
expiry of sixty days from the day on which it was imposed.

g) Every fine shall be deemed to have been imposed on the day of the act or omission.
h) All fines and realisations thereof shall be recorded in a register to be kept by the
person responsible for the payment of wages in such form as may be prescribed. All
realisation of fines shall be applied only to such purposes as are beneficial to the
persons employed in the factory.

2. Deductions for Absence from Duty (Sec. 9)
a) Deductions may be made on account of the absence of an employed person from
duty from the place or place where, by the terms of employment, he is required to
work.

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