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The Payment of Wages Act, 1936 regulates the payment of wages to direct and indirect employees. The act warrants payments of wages on time and without any deductions except those authorized under the Act. The Payment wages act is a regulation drawn up to protect the employee’s rights from being infringed by the employer. According to this act, the payment should be made before 7th of every month where the no. of workers are less than 1000 and on the 10th day if greater than 1000.
The Payment of Wages Act, 1936 regulates the payment of wages to employees (direct and indirect). The Payment of Wages Act regulates the payment of wages to certain classes of persons employed in industry, and its importance cannot be underestimated. The Act guarantees payment of wages on time and without any deductions except those authorized under the Act. The wage period shall not exceed 1 month.
The Payment of Wages Act does not apply to employees whose wage is Rs. 10000 or more per month. The Act also provides to the effect that a worker cannot contract out of any right conferred upon him under the Act.
Under the act, the payment has to be made in cash. Cheque payment or crediting wages to a bank account is allowed with the consent of employee in writing. The deduction made by the employer should be made by this act only.
Under the act, payment has to be made in currency notes or coins. Cheque payment or crediting to bank account is allowed with the consent in writing by the employee. (Section 6)
This Act includes fines for (Section 8), absence from duty (Section 9), Damages or loss (Section 10), deduction for services (amenities) given by employer (Section 11) recovery of advances and loans (Section 12, 13) and payment to cooperative society and insurance (Section 13).
Purpose of the Act
The main objective of the Act is to avoid unnecessary delay in the payment of wages and to prevent unauthorized deductions from the wages. Every person employed in any factory, upon any railway or through sub-contractor in a railway and a person employed in an industrial or another establishment. The State Government may by notification extend the provisions to any class of persons employed in any establishment or class of establishment. The benefit of the Act prescribes for the regular and timely payment of wages (on or before 7th day or 10th day of after wage period is greater than 1000 workers) and Preventing unauthorized deductions being made from wages and arbitrary fines.
Employer's required to display the abstracts of the Act in his factory or establishment. Every employer must display in his factory or establishment a notice containing the abstracts of the Act and the Rules made thereunder in English and in the language understood by the majority of the persons. The employee should be paid on time and should not be harassed against anything during employment.
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