Page 307 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes iv) to appeal against the direction made by the authority, if the amount of wages claimed
exceeds rupees one hundred (Sec. 17).

General Remarks

This Act is a Central legislation being administered by both Central and State Government in
their respective spheres as defined under the Act. In its original form, it suffered from a number
of lacunae and thus, failed to provide effective protection against unfair practices in regard to
payment of wages. With the gaining of experience in its working, it was amended several times.
To start with, it was made applicable to factory and railways employees with monthly wages up
to 200. Since then, it applied to workers of most of the organised industries, and the pay limit
for coverage of workers was raised to 1600/- per month in 1982. Now again this wage limit is
proving to be too low to cover most of the workers due to large increase in their wages and
salaries during the last fifteen years, the government is considering seriously to amend the Act
to raise the wage limit suitably and also to make Penalties for contravention of the Act more
deterrent. Both the Central and Stage Governments have framed rules under this Act, which
provide necessary safeguards to workers against delay in the payment of wages and unauthorised
deductions and fines.
The working of the Act and its rules have, no doubt, benefited the working class, as complaints
regarding non-payment of wages and erosion of wages by unauthorised and heavy deductions
and fines are not so many as before. In fact, since the enactment of this Act, employers have
started disciplining their workers more by suspending, discharging and dismissing them than
by imposing heavy fines and deductions. Increasing education, awakening among workers,
growth or trade unions, and increasing desire on the part of employers to play fair to their
workers, have also contributed to this improvement.
But still, as observed by the National Commission on Labour, which reviewed the working of
the Act, all the malpractices regarding payment of wages on the part of some employers have
not been checked by this Act. Some unfair practices still prevail largely in unorganised sector
and small industries, and also in some big industries like mines, plantations, and other
establishments where substantial number of workers are paid piece rate wages by weighing
and measuring their daily output. Complaints regarding wrong measurement are not rare. In
regard to time-rated workers’ complaints regarding non-payment of overtime are also not few.
Rejection of sub-standard work in industries like Bidi, still affects earnings of workers adversely.
The enforcement machinery has also been finding it difficult to bring round defaulting employer
because of the cumbersome procedure for prosecution, and small penalties as compared to
monetary benefits reaped by employers by delaying the payment of wages. Inspectors appointed
under this Act are experiencing difficulty in enforcing compliance with the provision of the Act
in Government-owned industries like railways. Mere amendment of the Act for simplifying the
procedure for prosecution, or making penalties for defaults more deterrent may not produce all
the desired results. Other possible measures, which may ensure greater protection of earned
wages, are the strengthening of inspection machinery, exercising greater vigilance by the
implementing authorities, policing by workers and their unions, and more education and
awareness of workers and supervisors in regard to the provisions of this Act and rules framed
thereunder.
The ILO has also laid down international standards for the protection of wages by adopting one
convention and one recommendation.

Task Explain Payment of Wages Act, 1936 by providing some cases related to
this.

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