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Unit 12: Payment of Wages Act, 1936

on a subsequent conviction with imprisonment for a term which shall not be less than one Notes
month but which may extend to three months, or with fine which shall not be less than
five hundred rupees but which may extend to three thousand rupees, or with both. But no
cognizance shall be taken of an earlier conviction made more than two years before the
date of commission of the offence being punished.
6) If any person fails or wilfully neglects to pay the wages of any employed person by the
fixed date, he shall without prejudice to any other action that may be taken against him, be
punishable with an additional fine which may extend to one hundred rupees for each day
for which such failure or neglect continues.

12.5 Cognizance and Trial of Offences (Sec. 21)

No court shall take cognizance of:
1. a complaint against any person for an offence arising out of non-compliance with the
provisions of the Act relating to delay in payment of wages and unauthorised deductions
from wages, unless an application in respect of the facts constituting the offence has been
presented under Section 15 and has been granted wholly or in part and the Authority or
the appellate court granting such application has sanctioned the making of the complaint;
2. a contravention of provision dealing with fixation of wage periods or with payment of
wages in current coin or currency notes, except on a complaint made by or with the
sanction of an Inspector under the Act;
3. any offence punishable under Sections 20(3) and 20(4), except on a complaint made by or
with the sanction of an Inspector under the Act.

In imposing any fine for an offence under Sec. 21(1) above, the Court shall take into
consideration the amount of any compensation already awarded against the accused in
any proceedings taken under Section 12. Before sanctioning the making of a complaint
against any person for an offence under Sec. 20(1), the Authority or the appellate court, as
the case may be, shall give such person an opportunity of showing cause against the
granting of such sanction. The sanction shall not be granted if such person satisfies the
Authority or Court that his default 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 or accept payment.

Bar on Suits (Sec. 22)

No court shall entertain any suit for the recovery of wages or of any deduction from wages in so
far as the sum so claimed:

a) forms the subject of an application under Section 15 for claims arising out of deductions
from wages or delay in payment of wages and penalty for malicious or vexatious claims,
which has been presented by the plaintiff and which is pending before the authority
appointed, or of an appeal under Section 17; or

b) has formed the subject of a direction under Section 15 in favour of the plaintiff; or
c) has been adjudged, in any procedure under Section 15 not to be owned to the plaintiff; or

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