Responsibility of Employer under the Payment of Wages Act 1936

 

Responsibility of Employer under the Payment of Wages Act 1936

Q.  (a) Write a short note on the responsibilities of an employer under the Payment of Wages Act?

 (b) What provision does this Act contain to compel the employer to perform his obligations properly?

(c) Who is responsible for the payment of wages?

(d) By what time should wages be paid under the Payment of Wages Act 1936?

 

Responsibilities of the employer:-

The various responsibilities of the employer under the Payment of Wages Act are as under-

Responsibility to pay wages—The responsibility for payment of wages is primarily that of the employer.  Section 3 of the Act , imposes the responsibility to pay the wages of the employees which he required to pay under the Act.

Who is the employer?- The  definition of employer under Section 2 (ia) says that only the term ‘employer’ includes the legal representatives of the deceased employer. In absence of complete definition the person deemed to be an employer and bound to pay wages for and on behalf of the employer-

(1)    The manager of the Factory- Under the Act  in case of factories, the liability is thrown on the person named as manager under Section 7 (1)(f) of the Factories Act. (Chiranji Lal Modi v. Chakravarty and others, 1963 (6)FLR 300).

(2)     In the Industrial establishment.- A person who is responsible to the occupier of the establishments for the supervision and control thereof.

(3)    In Railways Administration-A person who has been designated/nominated for payment for any area or areas.

(4)    In Private Limited Complies- The Director shall be deemed to be an employer (Bulgaria Coal Co. Ltd. Jharia v. Inderjeet Singh, AIR 1934 Pat 292)

Responsibility of fixing wage periods- According to Section 4 of the Act, the employer is responsible to fix  the period for the wages which is payable to any employee. The period for the payment of such wages, in no case shall exceed one month’s period.

Time for payment of wages.-  Section 5 lays down that the wages of every person employed upon or in-

(a)    Any railways, factory or industrial or other establishment or in which there are less than one thousand employees, the wages shall be paid before the expiry of the seventh day, and

(b)   Any other factory or industrial or other establishments shall be paid before the expiry of the tenth day after the last day of the wage period in respect of which the wage are payable,

The payment of due wages shall be paid.

Further, it is provided that in case of a person employed on a dock, wharf, or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship of wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.

In case of termination of employment of any person, the wages earned by him shall be paid before the expiry of the second working day from the date of termination. Where the employment of any person in an establishment is terminated due to closure of the establishment.

All the payment shall be made on the working day only.

Mode of payment of wages:- As per Payment of Wages (Amendment) Act, 2017, All the wages shall be paid in-

 

(a)    Current coins,

(b)   Current currency,

(c)    By cheque, or

(d)   By crediting the wages in the bank account of the employee.

 

References:-

 

       https://www.latestlaws.com/bare-acts/central-acts-rules/service-labour-laws/the-payment-of-wages-act-1936/payment-of-wages-act-1936/

 

https://www.lawfinderlive.com/bts4/LABOUR.htm

https://www.toppr.com/guides/fundamentals-of-laws-and-ethics/payment-of-wages-act/rules-for-payment-of-wages-section-3-6/

 https://tilakmarg.com/acts/code-on-wages-2019-chapter-iii-payment-of-wages/