PROJECT OBJECTIVE 1.
Toknow Authorised Deductions which can be made under “The Payment Of WagesAct-1936”.2. Tostudy in brief the Section 7, 8, 9, 10, 11, 12, 12-A, 13 of the above mentionedAct. RESEARCH QUESTIONIn thisassignment researcher wants to discuss about Authorised Deductions which can bemade under “The Payment Of Wages Act -1936”. RESEARCH METHODOLOGYThemethod adopted for the research is basically content analysis of the availablesecondary data. Contentanalysis is a methodology in the social sciences by which text are studied asto authorship, authencity, or meaning. Content analysis is a summarizing, quantitativeanalysis of messages that relies on the scientific method (including attentionto objectivity, inter- subjectivity, a priori design, reliability, validity,generalizability, replicability, and hypothesis and is not limited as to thetypes of variables that may be measured or the context in which the messagesare created or presented.
Inthis research the methodology of content analysis is used for analysinginternet data comprising of various articles, news articles, reports of variousinstitution etc. & books on the relevant topic to bring forth useful &appropriate information as it is the doctrinal type of research. ABSTRACT ThePayment of Wages Act regulates the payment of wages to certain classes ofpersons employed in industry and its importance cannot be under-estimated. TheAct guarantees payment of wages on time and without any deductions except thoseauthorised under the Act. The Act provides for the responsibility for paymentof wages, fixation of wage period, time and mode of payment of wages,permissible deduction as also casts upon the employer a duty to seek theapproval of the Government for the acts and permission for which fines may beimposed by him and also sealing of the fines, and also for a machinery to hearand decide complaints regarding the deduction from wages or in delay in paymentof wages, penalty for malicious and vexatious claims. The Act does not apply topersons whose wage is Rs.
10,000 or more per month. The Act also provides tothe effect that a worker cannot contract out of any right conferred upon himunder the Act. INTRODUCTIONPrior to 1936,there was no law regarding the regulation of payment to workmen. It was asearly as 1925 that a Private Bill called the “Weekly Payment Bill”was for the first time introduced in the Legislative Assembly. The Bill was,however withdrawn on an assurance from the Government that the matter was underactive consideration of the Government at that time. This was an attempt toremedy some of the evils like delay in payment of wages, non-payment of wages1,deductions made from wages on account of fines imposed by the employer.
etc. During thatperiod the Royal Commission on Labour in India draw attention to the abuses inthe system of wage payment, and made valuable advise as under:1. Children should be exempted from finesimposed by the employer.2. The minimum amount which could bededucted by way of fine should not exceed, in any month, half an Anna in therupee of the worker’s earnings.3. The sum realized as fine should be utilizedfor some purpose beneficial to the employees as a class and should be approvedby some recognized authority.4.
A notice specifying the acts andomissions in respect of which fines. may be imposed should be posted and anyother fine should deemed to be illegal.5. Any deduction made for goods having beendamaged should not exceed thewholesale price of the goods damaged. 6.
Deductions may be made on account ofprovision for housing accommodation and of tools and raw materials.7. Imposition of any fine and deduction made whichis not permitted by law should be made penal.Based on these recommendations of Royal Commission on labour in India, aBill of Payment of Wages Act was introduced in the Legislative Assembly in1933.
It was passed in 1936 and came into force on 21st March 1936. The Paymentof Wages Act was amended in the year 1937, 1957, and 1964 and in 1976 accordingto the needs of the situation prevailing at that time. The Payment of Wages(Amendment) Act, 1976 extends the Act to the whole of India.
OBJECT OF THE ACTToensure regular and prompt payment of wages and to prevent the exploitation of awage earner by prohibiting fines and deductions from his wages. To regulate thepayment of wages of certain classes of employed persons.ThePayment of Wages Act 2regulatesthe payment of wages to certain classes of persons employed in industry and itsimportance cannot be under-estimated. The Act guarantees payment of wages ontime and without any deductions except those authorised under the Act. The Actprovides for the responsibility for payment of wages, fixation of wage period,time and mode of payment of wages, permissible deduction as also casts upon theemployer a duty to seek the approval of the Government for the acts andpermission for which fines may be imposed by him and also sealing of the fines,and also for a machinery to hear and decide complaints regarding the deductionfrom wages or in delay in payment of wages, penalty for malicious and vexatiousclaims.
The Act does not apply to persons whose wage is Rs. 10,000 or more permonth. The Act also provides to the effect that a worker cannot contract out ofany right conferred upon him under the Act. APPLICATION:TheAct applies to the whole of India. It came into operation on 28th March, 1937.Under the Act, following categories of workers are covered:a. Personsemployed in any factory;b.
Personsemployed (otherwise than in a factory) upon any railways or by a personfulfilling a contract with a railway administration. WHAT IS ADEDUCTION?Adeduction occurs in any payment of wages that is less than the total amountproperly payable. This is the case even where there has been a 100% deduction andnothing of what is owed is paid at all.
In other words, non-payment can be adeduction.Themoney deducted is recoverable through the employment tribunals. This caninclude statutory sick pay, maternity pay and accrued holiday pay.
1 S.N. MISHRA, INTRODUCTION, pg. no. 745(27th ed. 2013)2 S.
N. MISHRA, OBJECT, Pg. no. 446(27th ed.