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The act provides for a speedy and effective remedy to the employees in respect of their claims arising out of illegal deductions or unjustified delay made in paying the wages to them
The State Government may, after giving three months notice of its intention of so doing, by notification in the Official Gazette, extend the provisions of this Act or any of them to the payment of wages to any class of persons employed in any establishment or class of establishments specified by the Central Government or a State Government
The wage limit for the applicability of the act is Rs.1600 per month. This act does not apply to a person whose average wage is Rs.1600 or more per month
DEFINITIONS
Factory means a factory as defined in clause (m) of section 2 of the Factories Act, 1948.
Industrial or Other Establishment" means anytramway service , or motor transport service engaged in carrying passengers or goods; air transport service; dock, wharf or jetty; inland vessel, mechanically propelled; mine or oil-field; plantation; workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale; Establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation, or to the supply of water or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on.
Wages"
means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes-
(a) any remuneration payable under any award or settlement between the parties or order of a court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law or contract (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force,
But does not include(1) any bonus, which does not form the part of remuneration payable under the terms of employment (2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity (3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment
(3) Where the employment of any person is terminated by or on behalf of the employer, the wages, earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated (4) The state govt. may by any order exempt any person responsible for the payment of wages from any provisions in this section. (5) All payments of wages shall be made on a working day.
DEDUCTION FOR THE RECOVERY OF ADVANCES OR FOR ADJUSTMENT OF OVERPAYMENT OF WAGES (SEC-12)
1) Recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period. 2) Recovery of advances of wages not already earned shall be subject to any rules made by the State Government regulating the extent to which such advances may be given and the installments by which they may be recovered.
Deductions for recovery of loans granted for housebuilding or other purposes under this act shall be subject to any rules made by the State Government regulating the extent to which such loans may be granted and the rate of interest payable thereon.
Deductions shall be subject to such conditions as the State Government may impose.
OTHER DEDUCTIONS
It includes: Deductions of income-tax payable by the employed person; Deductions required to be made by order of a court or other competent authority Deductions, made with the written authorization of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Union Act, 1926 Deductions for payment of PF, Insurance Premium, etc.
Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made therein.
INSPECTORS
Appointment of inspectors by the state govt. for the purpose of enforcing compliance with the provisions of this act In respect of persons employed in factories, an inspector of factories under the factory act, 1948 shall be an inspector The State Government may appoint Inspectors in respect of all persons employed upon a railway (otherwise than in a factory) to whom this Act applies. The State Government may, by notification in the Official Gazette, appoint such other persons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local limits within which they shall exercise their functions
POWERS OF INSPECTORS
Make such examination and inquiry as he thinks fit
in order to ascertain whether the provisions of this Act or rules made there under are being observed; Enter, Inspect and Search any premises at any reasonable time Supervise the payment of wages to persons employed Require by a written order the production at such place, as may be prescribed, of any register maintained in pursuance of this Act and take on the spot or otherwise statements of any persons which he may consider necessary for carrying out the purposes of this Act
POWERS OF INSPECTORS
Seize or take copies of such registers or documents or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by an employer;
PRESENTATION OF APPLICATION
When contrary to the provisions of section 7 to 13 any deduction has been made from his wages. When there has been any delay in the payment of wages
PRESENTATION OF APPLICATION
Application shall be presented within twelve months from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made Any application may be admitted after the said period twelve months when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.
PROCEDURE
When any application under the section is entertained, The authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard Authority makes further inquiry as may be necessary Authority may direct refund to the employed person of the amount deducted wrongfully or delayed payment Compensation not to exceed10 times the amount improperly deducted or Rs. 25 in case of delayed wages
RECOVERY OF AMOUNT
The amount directed to be paid may be recovered: If the authority is a Magistrate, by the authority himself If the authority is not a Magistrate, by any Magistrate to whom the authority makes application for the recovery of the amount