Background:
Employees hardship- 1.inordinate delay in receiving wages 2.imposition of fine 3.unauthorised deductions from meager wages .The Royal
Commission on Labour 1929 in India examined problem and made recommendation -Based on rcommendations act passed
Object :
The act was passed a) to ensure the payment of wages in particular forms at regular intervals b).without unauthorised deductions.
Any agreement made before or after the commencement of this act , whereby the an employed person relinquished any rights conferred
by this act shall be null and void.
Application :
Sec 1(2)
employed in any factory
Employed upon by any railway
fulfilling a contract with railway admin
SEC7(2)-Authorised Deductions
7(2)(a) .Fines
-on Employees by employer subject to provision U/S 8.of this act
Only For acts and omission prescribed in this act (govt /authority )
- notice specifying A & O exhibited in premises of employment
No imposition of fine to employee-until Opportunity to show cause against it given
-below age of 15.
Total amt of fine not greater than 31/2 paise
7(2)(b)
.Absence from
Duty
Recovery of fine-1). not in installment 2.)not after 60 days from day on which it is imposed.
Record in register-of fine collected ,kept in prescribed manner by responsible person , used for purpose to person
employed in factory /estd as approved by the prescribed authority .(kept in common fund maintained
- r/w sec 9:Authorise employer to make deduction for such
Instances- 1.Absent from place or places where he is required to work under terms of employment
2.Absent for part of day = absent for whole day
3.Absence stay in strike no work carried out
Amount of deduction proportion to period of absence from duty
Sec 9(2)-Proviso -10/more workers-absence in concert w/o due notice or reasonable cause , then deduction amt from 1
person = not exceeding 8 days
7(2)(c)
Damages or
lossof o
property
entrusted
7(2)(d).House
accommodation
7(2)(e)
Amenities and
services
7(2)(f)Recovery
of advances
7(2)(ff)
Recovery of
loans
7(2)(fff)
Recovery of
building loans
7(2)(g)Income
Tax
7(2)(h) Order
of court
7(2)(i) From PF
7(2)(J)(K)- cooperative
societies
+interest- Subj to rules by state Govt regul.ext of loan to be given +rate of interest payable.(wages)
-from wages Recovered in 12 Monthly Installments
-from wages
payment to co-operative societies recog under provident fund Act 1925/State Govt
Subj to conditions approved by state govt .
For payment to co-operative societies approved by state Govt .
-To Insurance scheme maintained by Indian Post Office .
-Payment on premium of life insuarance (written authorization of employed person )
-Purchase of securities of Govt Of India
-Deposit in any post office savings bank
Subj to conditions approved by state govt .
7(2)(l)
7(2) Recovery
Of Lossessustained by
Railway Admin
7(2)(p)
.
Limit Of Deduction
SEC7(2)-Deduction under this sec should not exceed
1.75% of such wages-where payment wholly /partly to be made to co-operative societies .
2.50% in other cases
SEC7(3)-Total deduction from wages due to employed persons
SEC7(4)-Recovering from wages of employee any amt payable by such person under any law for the time being in force except Indian
Railways Act .
_____________________________________________________________________________________________________________________
AUTHORITIES UNDER THE ACT
Sec14 (1)(2)(3)
Act empowers state Govt to appoint Inspectors to enforce provisons of this act and inspector U/factories act are assigned fns u/Act
Appointment of inspectors in respect of employed persons of railway admin to whom this act applies
The govt may dfine the local limits within which the class of factories and Indus.estd in respect of which inspector shall exercise fn.
Powers of Inspectors
1. Examine and enquire provisions of act and Rules thereunder compiled .
2. Enter, Inspect, search any premises-of rly,facty,Indus.estd-@any reasonable time with or w/o such assistance
3. Supervise payment of wages in rly,facty,Indus.estd-to employed person
4. Require by written order production of any register /record or take on spot or statement of any person .
5. Seize/take copies of register/document /operation-in respect of offence believed to committed by employer U/this act .
6. Exercise such other power that may be prescribed.
*They cant compel person to make statement ,in case of search/seizure .they are deemed to be public servant within meaning of IPC.
SEC 14(A)-Facilities Reasonable facilities for entry, inspection, supervision , examination provided.
Payment Of Wages Authority -SEC 15
State Govt - empowered to appoint the authority by issue of notification in official gazette
Authority Entrusted with power to claim hear and decide all claim arising out of deduction from wages, delay in payment of wages to
employees in that area ,inc.all matters incidental to such claims
SEC 15(1)-Who May Be Appointed As Authority
1. Presiding officer of any Labour Court /Indus.Tribunal under I.D.Act
2. Commissioner for workmen compensation
3. Officer with experience of judge of civil court /stipendary magistrate
SEC 15(2)-who can Make Appln
1. The employed person.
2. Any legal practitioner
3. Any official of registered trade union authorized in writing in his behalf
4. Any inspector under this act
5. Any other person with permission of authority
SEC 16 - Single appln can be made w.r.t employees belonging to same unpaid group
SEC 15(2)-Proviso stateGovt appoint more than one payment of wages authority for same specified area &order specify distribution or
allocation of work to be performed by them .
SEC 15 (2)-PROVISO 1 -It should be made with in one yr from which date deduction from wages was made/payment of wages due to him .
*General Manager North Eastern Rly Vs.Suraj Nath Dubey
Whether employee suspended ,removed or dismissed .wages becomes due to him only when such action is declared void.he cant have cause of
action b4 dateof such declaration
*Divisional Superindent Northern Rly Vs.Puskardett
Employee dismissed .dismissal declared void in civil court.on appeal decree set aside.2nd appeal by employee the decree of trial court restored on
9th jan 1962.spl appeal against this also dismissed.Employee filed an appln on july1962 claiming past wages due to him B/W 1947-1962.S.C held
that the employee was entitled to all such wages when 2nd appeal was allowed in 1962 and when he became entitled to cause of action .
* sawnuy Vs. U.O.I
The period of limitation commences to run when the wages accrue due and when in law the servant become entitled to wages
SEC 15 (2)-PROVISO 2-Power of payment of wages authority to admit an appln even after period of limitation providd there is sufficient cause
for not making the appln given by applicant
* Prem Narayan Amirthlavarma Vs.Divisional Traffic Mnager .Jaichand
The question of condon of delay can be decided after hearing boththe parties and not before it
* sitaramVs.Nagrasana
Sufficient cause is not a mere personal opinion of authority it must be decided by applying proper legal principles.
*Anant ram Vs.Asst.Engineer Lab IC
Parties fully participated in proceedings without raising objection as to limitation .so it is deemed as if there is implication and as such the
authorities cant permit theopposite party to agitate the question of limitation .
SEC20(4)-Fine-upto 500/-if
a. Wilfully obstructing inspector in the discharge of his duties
b. Refusing /willfully neglectingan inspector to afford facility for
making any inspection, examination, supervision or enquiry .
c. Wilfully refuses to produce on demand to any inspector any
register or document kept in pursuance of this act.
d. Prevents /attempts to prevent /does anything which its likely
to prevent any person from appearance or examination by
inspector acting under the act
Enhanced punishment
SEC20(5)Repeatation of offence within period of two years Imprisonment :3 months or fine-upto 1000/- or both .
SEC20(6)Failure or willfully neglects to pays the wages within fixed date addl fine upto 50 /- for each day .