Page 300 - DMGT516_LABOUR_LEGISLATIONS

Unit 12: Payment of Wages Act, 1936

compelling the production of documents. Further, every such authority shall be deemed to be a Notes
Civil Court for all the purpose of Sec. 195 and of Chapter XXVI of the Code of Criminal Procedure,
1973.

12.3.1 Who may File Application and When?

An application for claims arising under this Act may be filed by:
a) the employed person himself;
b) any legal practitioner; or

c) any official of a registered trade union authorised in writing to act on his behalf; or
d) any Inspector under the Act; or
e) any other person acting with the permission of the Authority appointed under the Act.
Every such application must be made within twelve months from the date on which the deduction
from wages was made, or from the date on which the payment of the wages was due to be made.
An application may also be admitted after twelve months, if the applicant satisfied the Authority
that there was a sufficient cause for not making the application within twelve months. But
sufficiency of the cause is to be decided by proper legal principles. Before admitting any such
application, the Authority must give notice to and bear, the opposite party and admission
should be conscientious. The discretionary power conferred on the Authority to condone delay
in filing an application is not excessive because the aggrieved party can seek redress against
abuse of this power by invoking the supervisory jurisdiction of the High Court under Article
227 of the Constitution. (Section 15).

12.3.2 Procedure and Directions

When any application for claims under this Act is entertained, the Authority shall bear the
applicant and the employer or other person responsible for payment of wages or give them an
opportunity of being heard. After such further inquiry (if any) as may be necessary, the Authority
may, without prejudice to any other penalty to which such employer or other person is liable
under this Act, direct the refund to the employed person of the amount deducted, or the payment
of the delayed wages, together with the payment of such compensation as the Authority may
think fit, not exceeding ten times the amount improperly deducted and twenty five rupees in
case of delayed wages. Even before the amount deducted or the delayed wages are paid before
the disposal of the application, the Authority may direct the payment of compensation as the
authority may think fit, not exceeding rupees twenty-five.
No direction for the payment of compensation shall be made in the case of delayed wages if the
Authority is satisfied that the delay was due to:

a) a bonafide error or bonafide dispute as to the amount payable to the employed person, or
b) the occurrence of an emergency, or the existence of exceptional circumstances, such that
the person responsible for the payment of the wages was unable, though exercising
reasonable diligence, to make prompt payment, or
c) the failure of the employed person to apply for the payment. (Section 15 (3)).
If the authority hearing an application is satisfied that the application was malicious or vexatious,
it may direct a penalty not exceeding fifty rupees to be paid to the employer or other person
responsible for payment of wages, by the person presenting the application. The authority may
further direct that a penalty not exceeding fifty rupees be paid to the State Government by the

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