(4) It applies in the first instance to the payment of wages to persons employed in any 5[factory, to persons] employed (otherwise than in a factory upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, 6[and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of Cl. (ii) of Sec. 2].

(5) 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 7[this Act] or any of them to the payment of wages to any class of persons employed in 5[any establishment or class of establishments specified by the Central Government or a State Government under sub-clause (h) of Cl. (ii) of Sec. 2]:

5[Provided that in relation to any such establishment owned by the Central Government, no such notification shall be issued with the concurrence of that Government].

(6) Nothing in this Act shall apply to wages payable in respect of wage period which, over such wage-period, average 8[one thousand six hundred rupees] a month or more.

1. Subs. by the Adaptation of Laws Order, 1950. For sub-section (2).

2. The Act extended to-

(1) Jammu and Kashmir by Act 5 of 1970 (w.e.f. Ist September, 197 1).

(2) Goa, Daman and Diu by Regn. 12 of 1962.

(3) Dadra and Nagar Haveli by Regn. 69 of 1963.

(4) Pondicherry by Regn. 7 of 1963.

(5) Loccadive, Minicoy and Amindivi Islands by Regn. 8 of 1965.

(6) State of Sikkim, by S.Os 896 (E), dated 23rd September 1987.

3. The words “except the State of Jammu and Kashmir” were substituted by Act 3 of 1951, Sec.3 and Schedule for the words “except Part B States” which were subsequently omitted by Act 51 of 1970, Sec. 2 (2) and Schedule.

4. See Gazette of India dated 28th March 1937, Pt. 1. p. 626.

5. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 3 (w.e.f. 15th October, 1982).;

6. Ins. by Sec. 3, ibid.

7. Subs. by Act 68 of 1957, Sec. 2, for the words “the Act” (w.e.f. 1 st April, 1958).

8. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 3, for the words one thousand rupees” (w.e.f. October, 1982).

2. Definition. -In this Act, unless there is anything repugnant in the subject or context,-

1[(i) “Employed person” includes the legal representative of deceased employed person;

(i-a) “Employer” includes the legal representative of a deceased employer;

(i-b) “Factory” means a factory as defined in Cl. (m) of Sec. 2 of the Factories Act, 1948 (63 of 1948) and includes any place to which the provisions of this Act have been applied under sub-section (1) of Sec. 85 thereof-,

(ii) 2[“Industrial or other establishment”] mean any. -

3[(a) Tramway service, or motor transport service engaged in carrying passengers or goods or both by road for hire or reward;

(aa) Air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India;]

(b) Dock, wharf or jetty:

4[(c) Inland vessel, mechanically propelled;]

(d) Mine, quarry or oil field;

(e) Plantation -,

(f) Workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale;

5[(g) Any establishment in which any work relating to the construction, development or maintenance or buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation, or the supply of water, or relating to the generation, transmission and distribution of electricity or any other form or power is being carried on;]

2[(h) Any other establishment or class of establishments which the Central Government or a. State Government may having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances specify by notification in the Official Gazette].

6[(ii-a) “Mine” has the meaning assigned to it in Cl. (i) of sub-section (1) of Sec. 2 of the Mines Act, 1952 (35 of 1952);]

7[(iii) “Plantation” has the meaning assigned to it in Cl. (f) of Sec. of the Plantations Labour Act, 1951 (69 of 1951);]

(iv) “Prescribed” means prescribed by rules made under this Act;

(v) “Railway administration” has the meaning assigned to it in Cl. (6) Of Sec. 3 of the Indian Railways Act, 1890 (9 of 1890); and

8[(vi) “Wages” means all remunerations (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;

(d) Any sum which by reason of the termination of employment of the person employed is payable under any law, contract or inserument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

(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 (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the ten-ns of employment or which is not payable under any award or settlement between the parties or order of Court;

(2) The value of any house accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by general or special order of the State Government;

(3) Any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued therein,

(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 nature of this employment; or

(6) Any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]

1. Subs. by Act 53 of 1964. Sec. 3, for Cl.(i) (w.e.f. Ist February 1965).

2. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 4 (w.e.f. 14th October, 1982).

3. Subs. by Act 53 of 1964, Sec. 3, for sub-clause (a) (w.e.f. lst February, 1965).

4. Subs. by Act 68 of 1957. Sec. 3, for sub-clause (c) (w.e.f. lst April, 1958).

5. Ins. by Sec. 3, ibid. (w.e.f. 1st April 1958).

6. Ins. by Act 53 of 1964, Sec. 3 (w.e.f. Ist February. 1965).

7. Subs. by Sec. 3, ibid. for Cl. (ii) (w.e.f. Ist February 1965).

8. Subs. by Act 68 of 1957. Sec. 3, for Cl. (v) (w.e.f. Ist April 1958).

STATE AMEDMENTS

GUJARAT. -Same as that of Maharashtra.1

JAMMU AND KASHMIR. -In Sec. 2 Cl. (ii) after sub-clause (9) the following new sub-clause has been inserted, namely:

“(h) “Forest” where any category of labour is engaged by the Government or by a forest lessee in an operation connected with the extraction of timber or firewood or exploitation of the forest in any other manner.2

MADHYA PRADESH. -(a) In Sec. 2 after Cl. (i), the following clause has been inserted namely:

“(i-a)'Industrial Court' means the Industrial Court constituted under Sec. 9 of the Madhya Pradesh Industrial Relations Act, 1960 (27 of 1960)” ; and (b) After Cl. (ii) the following clause has been inserted, namely :

“(ii-a) 'Legal representative' means the person who in law represents the estate of a deceased employed person.”3

MAHARASHTRA. -(a) In Sec. 2 after Cl. (ii) the following new clause has been inserted, namely:

“(ii-a) 'Legal representative' means the person who in law represents the estate of a deceased employed person.”

(b) For Cl. (iii) the following clause has been substituted, namely

(iii) 'Plantation' means-

(a) Any estate which is maintained for the purpose of growing cinchona, rubber, coffee, or tea, or

(b) Any farm which is maintained for the purpose of growing sugarcane and attached to a factory established or maintained for the manufacture of sugar:

Provided that on such estate or farm twenty-five or more persons are engaged for the purpose.”4

TAMIL NADU. -In Cl. (ii) of Sec. 2 after item (g). the following item has been added :

(h) Establishment or undertaking which the State Government may, by notification in the official Gazette, declare to be industrial establishment for the purpose of this Act.5

1. Vide Gujarat Act 26 of 196 1, Sec. 2 (w.e.f. 12th June, 196 1).

2. Vide Jammu and Kashmir Act 6 of 1974, Sec. 2 (w.e.f. 17th April, 1974).

3. Vide M.P. Act XI of 1964, Sec. 2 (w.e.f. 15th May, 1964).

4. Vide Bom. Act XLVIII of 1955, Sec. 2 (w.e.f. Ist July, 1956) ; Mah. Act XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

5. Vide T.N. Act LX of 1959, Sec. 2 (w.e.f. 19th August, 1959).

3. Responsibility for payment of wages. -Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act:

Provided that, in the case of persons employed (otherwise than by a contractor)-

(a) In factories, if a person has been named as the manager of the factory under 1[Cl. (f) of sub-section (1) of Sec. 7 of the Factories Act, 1948 (63 of 1948)];

2[(b) In industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;]

(c) Upon railways (other than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, the person so named, the person responsible to the employer, or the person so nominated, as the case may be, 3 [shall also be responsible] for such payment.

1. Subs. by Act 68 of 1957, Sec. 4, for “Cl. (e) of sub-section (1) of Sec. 9 of the Factories Act, 1934” (w.e.f 1st April, 1958).

2. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 5 (w.e.f. 15th October, 1982).

3. Subs. by Act 53 of 1964, sec. 4, for “shall be responsible” (w.e.f 1st February, 1965).

STATE AMEDMENTS

GUJARAT. -In Sec. 3, of the principal Act, for the proviso, the following has been substituted, namely:

“Provided that, in the case of persons employed (otherwise than by a contractor), -

(a) In factories, if a person has been named as the manager of the factory under Cl. (i) of the sub-section (1) of Sec. 7 of the Factories Act, 1948 (LXIII of 1948.) then the So named and the employer jointly and severally,

(b) In industrial establishments, if there is a person responsible to the employer for the supervision and control of the industrial establishment, then the person so responsible and the employer jointly and severally;

(c) Upon railways (otherwise than in factories), if the employer is a railway administration and the railway administration has nominated a person in this behalf for the local area concerned then the person so nominated; shall be responsible for such payment”, 1

MADHYA PRADESH. -In Sec. 3, for the proviso, the following proviso has been substituted, namely:

“Provided that, in the case of persons employed (otherwise than by a contractor), -

(a) In factories, if a person has been named as the manager of factory under Cl. (f) of sub-section (1) of Sec. 7 of the Factories Act, 1948 (63 of 1948) then the person so named and the employer jointly and severally;

(c) Upon railways (otherwise than in factories) if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned, then the person so nominated; shall be responsible for such payment”. 2

MAHARASHTRA. -Same as that of Gujarat.3

1. Vide Bom. Act LXIII of 1953, Guj. Act 25 of 1961, sec. 2 (w.e.f. 12^th June 1961

2. Vide M.P. Act XI of 1964 sec. 3 (w.e.f. 15^th may, 1964).

3. Vide Bom. Act LXII of 1953, sec. 2(w.e.f. 10^th May 1954); Mah. Act XIII of 1961, Sec.

4. Fixation of Wage-period. –

(l) Every person responsible for the payment of wages under Sec. 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.

(2) No wage-period shall exceed one month.

5. Time of payment of wages. -

(l) The wages of every person employed upon or in-

(a) Any railway, factory or 1[industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,

(b) Any other railway, factory or 1[lndustrial or other establishment], shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable:

2[Provided that in the case of persons 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 or 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.]

(2) 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

3[Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognized holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.)

(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) 4[or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government from the operation of this section in respect of the wages on any such persons or class of such persons:

3 [Provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.]

(4) 4[Save as otherwise provided in sub-section (2), all payments] of wages shall be made on a working day.

1. Subs. by the Payment of Wags (Amendment) Act, 1982 (38 of 1982), Sec. 6 (w.e.f. 15th October, 1982);

2. Added by Act 53 of 1964, Sec. 5 (w.e.f. 1st February, 1965).

3. Added by sec. 5, by Act 53 of 1964, (w.e.f. 1^st February, 1965).

4. Ins. by Act 53 of 1964, sec. 5.

5. Subs, by sec. 5, ibid for “All payments” (w.e.f. 1^st February, 1965).

STATE AMENDMENTS

ANDAMAN AND NICOBAR. -In Sec. 5, for sub-section (1) the following has been substituted, namely:

“(1) The wages of every person employed upon or in any railway, factory or industrial establishment shall be paid before the expiry of such number of days after the last day of the wage-period in respect of which the wages are payable, as the State Government may, by general or special order, specify and different number of days may be specified for different areas; so, however, that the number of days so specified shall not exceed the wage period' next following the wage-period in respect of which the wages are payable.”1

LAKSHADWEEP. -In Sec. 5, for sub-section (1) the following has been substituted, namely:

“(1) The wages of every person employed in any factory or industrial establishment shall be paid before the expiry of such number of days, after the last day of the wage-period in respect of which the wages are payable, the State Government may, by general or special order, specify, and different number of days may be specified for different areas; so, however, that the number of days so specified shall not exceed the wage-period next following the wage period in respect of which the wages are payable.”2

1. Vide Regn. 5 of 1965 sec. 2 (w.e.f. 8^th July, 1965).

2. Vide Regn. 2 of 1974, sec. 2 (w.e.f. 8^th April, 1974).

6. Wages to be paid in current coin or currency notes. -All wages shall be paid in current coin or currency notes or in both:

1[Provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank accounts]

1. Ins. by Act 29 of 1976, sec. 3 (w.e.f. 12^th November, 1975).

STATE AMEDMENTS

ANDHRA PRADESH. -In Sec. 6, the following proviso has been inserted after the existing proviso, namely:

“Provided further that the State Government may by notification in the Andhra Pradesh Gazette, specify the industrial establishment, the employers of which shall pay to the persons employed therein the wages either by cheque or by crediting the wages in their bank account.” 1

ASSAM. -In Sec. 6, the following proviso and explanation has been substituted, namely:

“Provided that notwithstanding anything contained in the Payments of Bonus Act, 1965, one-third of the amount of bonus payable to an employed person in a particular year in excess of rupees forty may be paid or invested into the National Defence Certificates or National Savings Certificates (First Issue), if the employed person records its assent by furnishing a no-objection certificate, in the manner to be prescribed, to his employer.

Explanation. -For the purposes of this section, the expression-

(1) “Wages” shall include any bonus of the description given in sub-clause (1) of Cl. (vi) of Sec. 2, and

(2) “Bonus” means bonus payable to an employed person under the terms of employment or under an award or settlement or order of a court, and also includes any bonus of the description given in sub-clause (1) of Cl. (VI) of Sec. 2.”2

BIHAR. -To Sec. 6 of the Payment of Wages Act, 1936 (IV of 1936) the following proviso shall be added, namely:

“Provided that where the amount of any bonus payable to an employed person under the terms of employment or under any award or settlement or order of a court, exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid to him or invested in his behalf in the manner prescribed.”3

In the proviso to Sec. 6 of the Payment of Wages Act, 1936 (IV of 1936), in its application to the State of Bihar (hereinafter referred to as the principal Act), for the words “any bonus payable”, the words “entire bonus payable during a year”, and for the words “for the year to which the bonus relates”, the words “for that year” shall be substituted.4

GUJARAT. -In the Payment of Wages Act, 1936, in its application to the State of Gujarat (hereinafter referred to as “the principal Act”) for Sec. 6 the following shall be substituted, namely:

“6. Wages to be paid in current coins or currency notes. -All wages shall be paid in current coins or currency notes, or in both:

Provided that, where the amount of any bonus, payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.

Explanation. -For the purpose of this section, the expression, -

(1) “Wages” shall include any bonus of the description given in sub-clause (1) of Cl. (vi) of Sec. 2; and

(2) “Bonus” means bonus payable to an employed person under the terms of employment or under an award or settlement or order of a court, and also includes bonus of the description given in sub- clause (1) of Cl. (VI) of Sec. 2.”5

MAHARASHTRA. -In the Payment of Wages Act, 1936 (IV of 1936), as in force in the whole of the State of Maharashtra (hereinafter referred to as “the principal Act”) for Sec. 6, the following shall be substituted, namely:

“6. Wages to be paid in current coins or currency notes. -All wages shall be paid in current coins or currency notes, or in both:

Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.

Explanation. -For the purposes of this section, the expression-

(1) 'Wages' shall include any bonus of the description given in sub-clause (1) of Cl. (vi) of Sec. 2; and

(2) 'Bonus' means bonus payable to an employed person under the terms of employment or under an award or settlement or order of a court, and also includes any bonus of the description given in sub clause (1) of Cl. (vi) of Sec. 2”1

ORISSA. -To Sec. 6 of the Payment of Wages Act, 1936 (4 of 1936), the following proviso shall be added, namely:

“Provided that when the amount of bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed”.2

1. Vide Andhra Pradesh Act 15 of 1982, Sec. 2 (w.e.f. 7th October, 1982).

2. Vide Assam Act I of 1970, Sec. 2, published in the Assam Gazette, Extraordinary, dated 22nd January 1970.

3. Vide the Bihar Act No. IV of 1961, Sec. 2, published in the Bihar Gazette, Extraordinary dated 9th March 1961.

4. Vide Act No. IV of 1963, Sec. 2, published in the Bihar Gazette, Extraordinary, No. 165, dated 29th March 1963.

5. Vide the Gujarat Act No. XXVI of 1961, Sec. 3, published in the Gujarat Gazette Extraordinary. Pt. IV. dated 12th June 1961.

6. Vide the Maharashtra Act No. XIII of 1961. Sec. 4. published in the Maharashtra Government Gazette. Extraordinary, Pt. IV. dated 4th March, 1961 (w.e.f. 4th March, 1961).

7. Vide the Orissa Act No.4 of l961.Sec.2, published in the Orissa Gazette. Extraordinary. No. 123, dated 11 the February, 1961 (w.e.f. Ist February, 1961).

7. Deductions, which may be made from wages. -

(1) Notwithstanding the provisions of sub-section (2) of Sec. 47 of the Indian Railways Act, 1890 (9 of 1890), the wages of an employed person shall be paid to him without deductions of any kind except those authoised by or under this Act.

1[Explanation. -Every payment made by the employed person to the employer or his agent shall for the purposes of this Act, be deemed to be a deduction from wages.

2[Explanation II. -Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely:

(i) The withholding of increment or promotion (including of stop-page of increment at an efficiency bar);

(ii) The reduction to a lower post or time scale or to a lower stage in a time scale; or

(ii)Suspension;

Shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by the State Government by notification in the official Gazette.]

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:

(a) Fines;

(b) Deductions for absence from duty

(c) Deductions for damage to or loss of goods expressly entrusted to the employed person or custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;

3(d) Deductions for house-accommodation supplied by the employer by Government or any housing board set up under any law for the time being in force (whether the Government or the Board is the employer or not) or any other authority engaged in the business of subsiding house accommodation which may be specified in this behalf by the State Government by notification in the official Gazette;]

(e) Deductions for such amenities and services supplied by the employer as the 4[***] State Government 5[or any officer specified by it in this behalf] may, by general or special order, authorise ;

Explanation-The word “services” in 6[this clause] does not include the supply of tools and raw materials required for the purposes of employment;

7[(f) Deductions for recovery of advance of whatever nature, (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of over payments of wages;

(ff) Deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof;

(fff) Deductions for recovery of loans granted for house-building or other purposes approved by the State Government, and the interest due in respect thereof,]

(g) Deductions of income-tax payable by the employed person;

(h) Deductions required to be made by order of a court or other authority competent to make such order;

(i) Deductions for subscriptions to, and for payment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925) applies or any recognised provident fund as defined in Sec. 58-A of the Indian Income-tax Act, 1922 (11 of 1922)⁸or any provident fund approved in this behalf by the State Government, during the continuance of such approval; 9

10[* * * *]

(j) Deductions for payments to co-operative societies approved by the State Government ¹¹[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office 12[and].

11[13[(k) Deductions, made with the written authorisation of the person employed for payment of any premium on his life-insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act. 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government of for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government.]]

14[(kk) Deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade upon registered under the Trade Unions Act, 1926 (16 of 1926) for the welfare of the employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it in this behalf, during the continuance of such approval;

(kkk) Deductions made, with the written authorisation 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;]

11(l) Deductions for payment of insurance premia on Fidelity Guarantee Bonds;

(m) Deductions for recovery of losses sustained by the railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;

(n) Deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharfage and carnage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise;

(o) Deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his neglect or default; 15

15[(p) Deductions, made with the written authorization of the employed person, for contribution of the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;]

16[(q) Deductions for contribution to any insurance scheme framed by the Central Government for the benefit of its employees.]

17[(3) Notwithstanding anything contained in this act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed-

(i) In cases where such deductions are wholly or partly made for payments to co-operative societies under Cl. (j) of sub-section (2), seventy-five per cent of such wages, and

(ii) In any other case, fifty percent of such wages provided that where the total deductions authorized under subsection (2) exceed seventy-five percent. or, as the case may be, fifty percent, of the wages, the excess may be recovered in such manner as may be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than the Indian Railways Act, 1890 (9 of 1890).]

1. Explanation re-numbered as Expl. 1 by Act 68 of 1957. Sec. 5 (w.e.f. Ist April. 1958).

2. Ins. by Sec. 5. ibid. (w.e.f. 1st April 1958).

3. Subs. by Act 68 of 1957, Sec. 5, for Cl. (d) (w.e.f. 1st April, 1958).

4. The words “Governor-General-in-Council or” omitted by the Government of India (Adaptation of India Laws) Order, 1947.

5. Ins. by Act 53 of 1964, Sec. 6 (w.e.f. lst February, 1965).

6. Subs. by Act 56 of 1974, Sec. 3 and Sch. 11, for the words “this sub-clause” (w.e.f. 20th December, 1974).

7. Subs. by Act 53 of 1964. Sec. 6 for Cl. (D (w.e.f. lst February 1965).

8. See now the Income-tax Act, 1961 (43 of 196 1).

9. The word “and” omitted by Ordinance 3 of 1940, Sec. 2.

10. During the continuance in force of the Defence of India Act, 1971 (42 of 1971), Sec. 7 shall have effect as if after Cl. (o of sub-section (2) thereof the following clause had been inserted

(ii) Deductions made with the written authorisation of (i) the employed person, or

(ii) The president or secretary of the registered trade union of which the employed person is a member on such condition as may be prescribed, for contribution to the National Defence Fund or to any Defence Savings Scheme approved by the State Government”.

11. His. by Act 53 of 1964, Sec. 6 (w.e.f. 1st February, 1965).

12. Added by Ordinance 3 of 1940, Sec. 2.

13. Subs. by Act 68 of 1957, Sec. 5, for Cl. (k) (w.e.f. 1st April, 1958).

14. Ins. by the Payment of Wages (Amendment) Act. 1982 (38 of 1982), Sec. 7 (w.e.f. 15th October, 1982).

15. Ins. by Act 53 of 1964, Sec. 6 (w.e.f. lst February, 1965).

16. Ins. by Act 19 of 1977, Sec. 2.

17. Ins. by Act 29 of 1976, Sec. 4 (w.e.f. 12th November, 1975).

STATE AMEDMENTS

BIHAR. -In Cl. (d) of sub-section (2) of Sec. 7 of the Payment of Wages Act, 1936 (IV of 1936), after the word “employer”, the words “or by the State Government or by a statutory housing board or by such agency as the State Government may notify” shall be inserted.1

GUJARAT. -In Sec. 7 of the principal Act, in sub-section (2) in Cl. (k), the words “for being deposited in any Post Office Savings Bank” shall be deleted.2

KARNATAKA. -In its application to the Mysore Area of the State of Karnataka, -

(a) In sub-section (2) of Sec. 7, after Cl. (k), the following clauses have been added, namely:

“(l) Deductions to recover from a person re-employed after the termination of his former employment any amount paid to him from provident fund or as a gratuity on such termination;

(m) Deduction specially authorized by the State Government for a purpose beneficial to the employed person”;

(b) After sub-section (2), add the following sub-section, namely. -

“(3) Where the wages for any employment are on an incremental basis, the increments of any employed person may, for disciplinary reasons be withheld or his wages may, for like reasons, be reduced to a lower, stage in the scale, provided that in the latter case he shall be given such period of notice for such reduction as is not less than the period of notice required to be given to him under his contract of employment for the termination of his employment.

(4) Where an employed person is required to perform a class of a employment involving a standard of skill or responsibility lower than that involved in the employment in which he is employed for the time being, any diminution in wages by reason of such lower standard of skill or responsibility shall be deemed to be deducted from wages for the purposes of this Act.

(5) The provisions of sub-sections (1), (2) and (3) of Sec. 8 shall apply to any withholding of increment or reduction referred to in sub-section (4), is taken for disciplinary reasons, to such action, as they apply to the in position of fines”. 3

In Sec. 7 of the principal Act in sub-section (2) after Cl. (p), the following clauses have been added, namely:

“(q) Deductions to recover from a person re-employed after the termination of his former employment any amount paid to him from provident fund or as a gratuity on such termination

Provided that such recovery shall not exceed 20 percent of total earnings. Re employment in this context means employment under the same employer; 4

5[* * * * *]

KERALA -. After Cl. (o) of sub-section (2)-of Sec. 7 inserts the following new clause -

“(p) Deductions for payment to the State Government of the amount of financial aid granted under the Kerala Financial Aid (to the Discharged or Dismissed Labour) Rules, 1958”. 6

MADHYA PRADESH. -(a) Clause (d) of sub- section (2) of Sec. 7 read as follows:

“(d) Deductions for house accommodation supplied by the employer or by the State Government or by such agency which the State Government may notify.”

(b) After Cl. (k) of sub-section (2) of Sec. 7, the following new clause has been inserted, namely:

“(l) Deductions, made with the written authorization of the employed person, for investment in Government Securities, such as, Post Office Cash Certificates and National Savings Certificates.”7

“(ee) Deduction with the written authorization of the person employed, for payment of any subscription to any welfare scheme sponsored by the employees, whether with or without participation of employer, such as, Employees Death Relief Scheme and approved by such authority and in such manner as may be prescribed',.8

MAHARASHTRA. -In See. 7 of the principal Act, in sub-section (2) in Cl. (d) after the word “employer” the following shall be added, namely:

“Or the State Government, or the Bombay Housing Board constituted under the Bombay Housing Board Act, 1948 (Bom. LXIX of 1948), or such other agency as the State Government may, by Notification in the Official Gazette, direct.” 9

In its application to Bombay area Cl. (d) of Sec. 7 (2) was amended so as to read as follows, namely:

“(d) Deductions for house accommodation supplied by the employer or the State Government, or the Bombay Housing Board constituted under the Bombay Housing Board Act, 1948, or such other agency as the State Government may, by notification in the Official Gazette, direct.”10

In Sec. 7 of the principal Act in subsection (2) in Cl. (k), the words “for being deposited in any Post Office Savings Bank” shall be deleted.11

In Sec. 7 (2), the word “and” at the end of Cl. 0) shall be omitted and after Cl. (k) the following new Cl. shall be added, namely:

“(l) Deductions made, with the consent of the person employed, for contribution towards any public charitable purpose which the State Government may, by notification in the Official Gazette, specify in that behalf.”12

ORISSA. -In Cl. (d) of sub-section (2) of Sec. 7, after the words “supplied by the employers”, the words “or by the State Government or by any Housing Board or Agency which the State Government may notify in this behalf shall be inserted.13

PONDICHERRY. -After Cl. (d) of sub-section (2) of Sec. 7, the following clause shall be inserted namely:

“(dd) Deductions for electricity supplied to the employed person by the Electricity Department of the Government of Pondicherry.”14

TAMIL NADU. -In sub-section (2) of Sec. 7 after Cl. (d), the following clause has been inserted, namely:

“(dd) Deductions for electricity supplied to the employed person by the Madras State Electricity Board constituted under Sec. 5 of the Electricity (Supply) Act, 1948 (Central) Act LIV of 1948), hereinafter in this Act referred to as the State Electricity Board”. 15

In sub-section (2) of Sec. 7 of the Payment of Wages Act, 1936, (Central Act IV of 1936), after Cl. (g) of the following clause shall be inserted, namely

“(gg) Deductions of profession tax payable by the employed person to any local authority”.16

WEST BENGAL. -In sub-section (2) of Sec. 7, after Cl. (e) of the principal Act, the following clause has been inserted, namely:

“(ee) Deductions for contribution to a fund created under a Death Benefit Scheme' approved by the, State Government and designed to render pecuniary assistance to the nominees of a deceased employed person nominated in such manner as may be prescribed who had been a member of such a scheme:

Provided that no deduction shall be made without written authorisation of the employed person in the form and manner prescribed in the scheme.

Explanation- (1) Where the employed person has a family, a member of the family, shall be nominated.

(2) Where the employed person has no family, any person may be nominated.

Explanation II. -For the purpose of Explanation I, -

(1) The family of a male employed person shall include his wife, legitimate children dependent parents, the widow and legitimate children of his pre-deceased son:

Provided that if such employed person proves that his wife has ceased, under the personal law governing him or the customary law of the community to which the spouses belong to be entitled to maintenance from him, the wife shall, not be regarded as a member of his family:

Provided further that such employed person may subsequently by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that his wife may continue to be regarded as a member of his family.

(2) The family of a female employed person shall include her husband, legitimate children dependent parents, husband's dependent parents the widow and legitimate children of her pre-deceased son

Provided that such employed person may by a notice in writing to such authority as may be specified by the State Government by notification in this behalf declare that her husband and his dependent parents, have been excluded from her family:

Provided further that such employed person may, subsequently by a notice in writing to such authority, cancel the aforesaid notice; and

(3) If a legitimate child of an employed person of a pre-deceased son of an employed person is validly adopted by any other person under any law in force for the time being, such child shall not be a member of the family of such employed person”. 17

1. Vide Bihar Act No. XXVIII of 1956, Sec. 2, published in the Bihar Gazette, Extraordinary, No. 233, dated 23rd November 1956.

2. Vide the Gujarat Act No. XXVI of 1961 Sec. 4, published in the Gujarat Government Gazette, Extraordinary, Pt. IV, dated 12th June, 1961.

3. Vide Mysore Act XV of 1952, Sec. 2 (w.e.f 15th April, 1952).

4. Vide the Payment of Wages Karnataka (Amendment) Act, 1976 (Karnataka Act No. 2 of 1977), Sec. 3, published in the Karnataka Gazette, Extraordinary, Pt. IV, dated 16^th March 1977 (w.e.f. Ist February 1982).

5. Clause (r) omitted by Karnataka Act 2 of 1982, Sec. 2 (w.e.f 28th January 1982).

6. Vide Kerala Act of 1969, Sec. 2 (w.e.f. 30th September, 1969).

7. Vide M.P. Act XXIII of 1958, Sec. 3 (2) and Schedule, Part B.

8. Vide M.P. Act XXXIII of 1976, Sec. 3.

9. Vide Bombay Act XXXVII of 1956;

10. Vide Bombay Act 11 of 1956, Sec. 2 (w,e.f. 19th July, 1956).

11. Vide the Maharashtra Act XIII of 1961, Sec. 5, published in the Maharashtra Government Gazette, Extraordinary; Pt. IV dated 4th March 1961 (w.e.f. 4th March, 1961).

12. Vide the Maharashtra Act XLII of 1961, Sec. 2 (w.e.f. 9th October, 1961).

13. Vide Orissa Act XXII of 1957, Sec. 2 (w.e.f 29th October, 1956).

14. Vide Pondicherry Act 9 of 1970, Sec. 2 (w.e.f 25th May, 1970).

15. Vide Tamil Nadu Act, XX of 1963, Sec. 2 (w.e.f. 25th October, 1963).

16. Vide Tamil Nadu Act 47 of 1974, Sec. 2, published in the Tamil Nadu Government, Gazette, Extraordinary, dated 8th November 1974.

17. Vide West Bengal Acts XXVI of 1975. Sec. 3 and XIX of 1981, Sec. 3, published in the Calcutta Gazette, Extraordinary. Pt. III, No. 454, dated 4th July 1981 (w.e.f. 4th July, 1981).

8. Fines. -

(1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under sub-section (2).

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of persons employed upon a railway (otherwise than in a factory), at the prescribed place or places.

(3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of the fines.

(4) The total amount of fine which may be imposed in any one wage period of any employed person shall not exceed an amount equal to 1[three percent] of the wages payable to him in respect of that wage-period.

(5) No fine shall be imposed on any employed person who is under the age of fifteen years.

(6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from the day on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.

(8) All fines and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under Sec. 3 in such form as may be prescribed ; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.

Explanation. -When the persons employed upon or in any railway, factory or 2[industrial or other establishment] are part only of a staff employed under the same management, all such realisations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.

STATE AMEDMETS

GUJARAT (BOMBAY AREA). -In See. 8 (8) before the explanation, the following words has been added, namely:

“But in case of any factory or establishment to which Bombay Labour Welfare Fund Act, 1953, applies, all such realisations shall be paid into the fund constituted under the said Act.”3

KARNATAKA.-In is application to Karnataka the following has been added before the explanation, namely :

“But in case of any factory or establishment to which the Mysore Labour Welfare Fund Act, 1965, applies, all such realizations shall be paid into the fund constituted under the said Act.”4

KERALA. -In Sec. 8 (8) before the explanation, a new proviso has been added, namely :

Provided that in the case of any establishment to which Kerala Labour Welfare Fund Act, 1975, applies all such realisations shall be paid into the Fund constituted under that Act.”5

MAHARASHTRA. -In Sec. 8 (8) before the explanation, the following words have been added, namely:

“But in case of any factory or establishment to which the Bombay Labour Welfare Fund Act, 1953, applies. all such realizations shall be laid into the fund constituted under the said Act.”6

PUNJAB-HARYANA.-See Proviso II to Sec. 10 (2) of the Punjab Labour Welfare Fund Act, 1965 (Act 17 of 1965) and Act 31 of 1966, Sec. 88.

TAMIL NADU.-In Sec. 8 (8) in the last sentence the following words have been added, namely:

“But in the case of any establishment to which the Tamil Nadu Labour Welfare Fund Act, 1972, applies all such realizations shall be paid into fund constituted under the aforesaid Act”.7

UTTAR PRADESH.-The following proviso has been added to sub-section (8) of Sec. 8 :

“ Provided that in the case of any factory or establishment to which the U.P. Welfare Fund Act, 1965, applies, all such realisations shall be paid into the Fund established under the said Act”.8

WEST BENGAL.-In Sec. 8 (8) before the explanation a new proviso has been added, namely:

“Provided that in case of establishment to which the West Bengal Labour Welfare Fund Act, 1974, applies, all such realisations shall be paid into the fund constituted under the said Act.”9

1. Subs by the Payment of Wages (Amendment) Act, 1982 (38 of 1982). Sec. 8, for the words “half-an-anna in rupees” (w.e.f. 15th October, 1982).

2. Subs. by Act 38 of 1982, Sec. 9, for the words “industrial establishment” (w.e.f. 15th October, 1982).

3. Vide Gujarat Act 26 of 1961, Sec. 2 (w.e.f. 12th June, 1961).

4. Vide Mysore Act XV of 1965, Sec. 25 (w.e.f. 5th August, 1965).

5. Vide Kerala Act 11 of 1977, Sec. 43 (w.e.f. Ist May, 1977).

6. Vide Bom. Act XL of 1953, Sec. 23.

7. Vide Tamil Nadu Act 36 of 1972, Sec. 43 (w.e.f. Ist January, 1973).

8. Vide U.P. Act XIV of 1965, Sec. 23 (w.e.f. 26th July, 1965).

9. Vide West Bengal Act 38 of 1974, Sec. 28 (w.e.f. 1st May, 1976).

9. Deductions for absence from duty. -

(l) Deductions may be made under Cl. (b) of sub-section (2) of Sec. 7 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made a larger proportion than the period for which he was absent bears to the total period, within such wage-period, during which by the terms of his employment, he was required to work:

Provided that, subject to any rules made in this behalf by the State Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.

1[Explanation-For the purpose of this section, an employed person shall be deemed to be absent from the place where he is required to work, if although present in such place, he refuses, in pursuance of a stay-instrike or for any other cause which is not reasonable in the circumstance, to carry out his work.]

1. Added by Act 22 of 1937, Sec. 2.

10. Deductions for damage or loss.-

1[(1) A deduction under Cl. (c) or Cl. (o) of sub-section (2) of Sec. 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.

(I -A) A deduction shall not be made under Cl. (c) or Cl. (m) or Cl. (n) or Cl. (o) of sub-section (2) of Sec. 7 until the employed person has been given an opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.

(2) All such deductions and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under Sec. 3 in such form as may be prescribed.

1. Subs. by Act 53 of 1964, Sec. 7, for sub-section (1) (w.e.f 1st February, 1965).

11. Deductions for services rendered.-A deduction under Cl. (d) or Cl. (e) of sub-section (2) of Sec. 7 shall not be made from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the house accommodation amenity or service supplied and, in the case of deduction under the said Cl. (e), shall be subject to such conditions as 1[* * *] the State Government may impose.

1. The words “the Governor-General in Council or” omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.

STATE AMEDMENTS

PONDICHERRY. -After Sec. II, the following section shall be inserted, namely:

“11-A. The employer shall, if so required by a requisition in writing, by the Electricity Department of the Government of Pondicherry or by an officer authorised by it in this behalf, make the deductions authorised under Cl. (dd) of sub- section (2) of Sec. 7 from the wages of the employed person and remit the amount so deducted in such manner as the State Government may, by general or special order, specify.”1

TAMIL NADU. -After Sec.11, the following sections shall be inserted, namely:

“11-A. Deductions in respect of house accommodation. The employer shall make the deductions authorised under Cl. (d) of sub-section (2) of Sec. 7, from the wages of the employed person and remit the amount so deducted in such manner as the State Government may, by general or special order specify.”2

“l1-B. Deductions in respect of electricity. -The employer shall, if so required by a requisition in writing, by the State Electricity Board or by an officer authorised by it in this behalf, make the deductions authorised under Cl. (dd) of sub-section (2) of Sec. 7 from the wages of the employed person and remit the amounts so deducted in such manner as the State Government may, by general or special order specify.”3

After Sec. 11 -B of the principal Act, the following section shall be inserted, namely:

“ 11 -C. Deductions in respect of profession tax-The employer shall, if so required by a requisition in writing, by the local authority concerned or by an officer authorised by it in this behalf, make the deductions authorised under Cl. (gg) of sub-section (2) of Sec. 7 from the wages of the employed person and remit the amount so deducted to the credit of the local authority concerned in such manner as the State Government may, by general or special order, specify.”4

1. Vide Pondicherry Act 9 of 1970. Sec. 3 (w.e.f. 25th May, 1970).

2. Vide Tamil Nadu Acts IX of 1959, Sec. 4 and XIV of 1962, Sec. 2 and First Schedule (w.e.f. 9th January, 1963).

3. Vide Tamil Nadu Act XX of 1963, Sec. 3 (w.e. f. 16th November, 1963).

4. Vide The Tamil Nadu Act No. 47 of 1974, Sec. 3, published in the Tamil Nadu Government Gazette, dated 8th November, 1974.

12. Deductions for recovery of advances.-Deductions under Cl. (p of sub-section (2) of Sec. 7 shall be subject to the following conditions, namely:

(a) Recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wages-period, but no recovery shall be made of such advances given for travelling-expenses;

1[(aa) Recovery of an advance of money given after employment began shall be subject to such conditions as the State Government may impose;]

(b) 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 instalments by which they may be recovered.

1 . Ins. by Act 53 of 1964, Sec. 8 (w.e. f. Ist February, 1965).

1[12-A.Deductions for recovery of loans. -Deductions for recovery of loans granted under Cl. (M) of sub-section (2) of Sec. 7 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.]

1. Ins. by Sec. 9, ibid, (w.e.f. Ist February, 1965).

13. Deductions for payments to co-operative societies and insurance schemes. -Deductions under Cl. (i) 1[and Cl. (k)] of sub-section (2) of Sec. 7 shall be subject to such conditions as the State Government may impose.

STATE AMENDMENT

KARANATAKA. -In Sec. 13 of the principal Act, -

(1) For the heading the following heading shall be substituted namely:

“13. Other deductions.”

(2) For the words, letters and brackets, “under Cl. 0) and Cl. (k)” the words, letters and brackets “under Cl. U), Cl. (k), and Cl. (q)” shall be substituted.2

1. Ins. by Ordinance 3 of 1940, Sec. 3 (w.e.f. 2nd July, 1940).

2. Vide the Payment of Wages (Karnataka Act No. 2 of 1977), Sec. 4. published in the Karnataka Gazette, Extraordinary, Pt.IV, dated 16th March, 1977,as subsequently amended by Karnataka Act 2 of 1982, Sec. 3 (w.e.f. 28th January, 1982).

1[13-A. Maintenance of registers and records. –

(1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed.

(2) 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.]

1. Ins by Act 53 of 1964, Sec.10 (w.e.f. 1st February 1965).

14. Inspectors. -

(1) An Inspector of Factories appointed under 1[sub-section (1) of Sec. 8 of the Factories Act, 1948 (63 of 1948)], shall be an Inspector for the purposes of this Act in respect of all factories within the local limits assigned to him.

(2) The State Government may appoint Inspectors for the purpose of this Act in respect of all, persons employed upon a railway (otherwise than in a factory) to whom this Act applies.

(3) 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 and the class of factories and 2[industrial or other establishments] in respect of which they shall exercise their functions.

3[(4) An Inspector may, -

(a) Make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act or rules made thereunder are being observed:

(b) With such assistance, if any, as he think fit, enter, inspect and search any premises of any railway, factory or ⁴[industrial or other establishment] at any reasonable time of the purpose of carrying out the object to this Act;

(c) Supervise the payment of wages to persons employed upon any railway or in any factory or 4[industrial or other establishment];

(d) Require by written order the production at such place, as may be prescribed, of any register or record 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;

(e) 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;

(f) Exercise such other powers as may be prescribed

Provided that no person shall be compelled under this sub-section to answer any question or make any statement tending to incriminate himself

(4-A) The provisions of the 5[Code of Criminal Procedure, 1973 (2 of 1974)] shall, so far as may be applied to any search or seizure under this sub-section as they apply to any search or seizure made under the authority of a warrant issued under 6[Sec. 94 of the said Code.]

(5) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860).

1. Subs. by act 68 of 1957, Sec. 6, for “sub-section (1) of Sec. 10 of the Factories Act, 1934” (w.e.f. April, 1958).

2. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 9, for the words “industrial establishments” (w.e.f. 15th October, 1982).

3. Subs. by Act 53 of 1964, Sec. 11, for sub-section (4) (w.e.f. Ist February, 1965).

4. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 9, for the words “industrial establishment” (w.e.f. 15th October, 1982).

5. Subs. by Sec. 9, ibid, (w.e.f. 15th October, 1982).

6. Subs. by ibid. for the word and figures “Sec. 98” (w.e.f 15th October, 1982).

1[14-A. Facilities to be afforded to Inspectors.-Every employer shall afford an Inspector all reasonable facilities for making any entry, inspection, supervision, examination or inquiry under this Act.]

1. Ins. by Act 53 of 1964, Sec. 12 (w.e.f lst February, 1965).

15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims. -

(l) The State Government may, by notification in the official Gazette, appoint 1[a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State or] any Commissioner for Workmen's Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, 2[of persons employed or paid in that area, including all matters incidental to such claims:

Provided that where the State Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.]

(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1) may apply to such authority for a direction under sub-section (3):

Provided that every such 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, as the case may be:

Provided further that any application may be admitted after the said period of 3[twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

(3) When any application under sub-section (2) is entertained the authority shall hear the applicant and the employer or other person responsible for the payment of wages under Sec. 3, or give them an opportunity of being heard, and, after such further inquiry (if any) as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and 4[not exceeding twenty-five rupees in the latter, and even if the amount deducted or the delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding twenty-five rupees] :

Provided that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to-

(a) A bonafide error or bonafide dispute as to the amount payable to the employed person, or

(b) The occurrence of an emergency, or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment, or

(c) The failure of the employed person to apply for or accept payment, 5[(4) If the authority hearing an application under this section is satisfied-

(a) That the application was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(b) That in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be paid to the State Government by the employer or other person responsible for the payment of wages.

(4-A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or of the employed person, the decision of the authority on such dispute shall be final.

(4-B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of Sees. 193,219 and 228 of the Indian Penal Code (45 of 1860).]

(5) Any amount directed to be paid under this section may be recovered-

(a) If the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and

(b) If the authority is not a Magistrate, by any Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.

STATE AMENDMENTS

ANDHRA PRADESH.-After Sec. 15, the following section shall be inserted, namely:

“15-A. Exemption of court-fees in respect of proceedings under Sec. 15. -(I) In respect of any proceedings under Sec. 15 the applicant shall not be liable to pay any court-fees, other than fees payable for service of process:

Provided that where the application is presented by an inspector or any other person acting with the permission of the authority appointed under sub-section (1) of Sec. 15, he shall not also be liable to pay the fees for the service of process.

(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate in the manner prescribed the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for the payment of wages under Sec. 3 to pay the amount to the State Government. Where the amount is not so paid, it shall without prejudice to any other mode of recovery, be recoverable as if it were an arrear of land revenue”.6

BELGAUM AREA.-Amendments made by Bombay Acts 62 of 1957; 70 of 1954 and 48 of 1955 in force in this area have been repealed.7

GUJARAT. -Same as that of Maharashtra.8

HARYANA. -After the proviso to Sec. 15 (1) the following proviso shall be inserted, namely :

“Provided further that the State Government may transfer any matter from one authority to the other authority.”9

KARNATAKA. -In Sec. 15,-

(1) For the words “stipendiary Magistrate” substitute the words “Judicial Magistrate.”10

(2) In sub-section (2), after the words, brackets and figure “sub-section (3)”, the following shall be inserted, namely:

“And in case of death of the employed person, it shall be lawful for his legal representatives to make an application for such direction”.

(3) For sub-section (5), the following sub-section shall be substituted, namely:

“ (5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall for that purpose be deemed to be a public officer within the meaning of Sec. 5 of the Revenue Recovery Act, 1890. “

After Sec. 15 of the principal Act, the following section shall be inserted, namely:

“ 15-A. Liability for payment of court-fees.-(I) In any proceedings under Sec. 15, the application shall not be liable to pay any court-fees (other than fees payable for the service of process in respect of such proceedings) :

Provided that when the application is presented by an Inspector he shall not be liable to pay the process fees also.

(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for the payment of wages under Sec. 3 to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.

(3) When an appeal is preferred under Sec. 17 by a person making an application under Sec. 15 the provisions of sub-sections (1) and (2) shall mutatis mutandis apply with the modification that such person, not being an Inspector, shall pay court-fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal”.11

MADHYA PRADESH. -In Sec. 15, -

(i) In sub-section (1), for the words “any Commissioner for workmen's compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority” the words “one or more persons to be the authority authorities” shall be substituted;

(ii) After sub-section (1), the following sub-sections shall be inserted, namely:

“ (I-A) A person shall not be qualified for appointment as an authority under this. Act, unless he is a Commissioner for workmen's compensation or any other officer with experience as a Judge of Civil Court or of a Labour Court constituted under the Madhya Pradesh Industrial Relations Act, 1960 [No. 27 of'1960).

(I-B) Where more than one persons are appointed for any specified area as authorities under sub-section (1), the State Government may by general or special order, make arrangements as it thinks fit for the distribution of the work among the authorities so appointed”;

(iii) In sub-section (2), -

(a) After the words “to act on his behalf”, the words, figures and brackets “or a representative union recognized as such under the Madhya Pradesh Industrial Relations Act, 1960 (27 of 1960)”, shall be inserted;

(b) After the words, brackets and figure “sub- section (3)”, the words “and in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction” shall be inserted;

(iv) In sub-section (3), -

(a) After the words “employed person”, the words “or his legal representatives, as the case may be”, shall be inserted;

(b) For the words “ten rupees in the latter”, the words “twenty-five rupees in the latter case and the authority may direct the payment of such compensation in case, where the amount deducted or the delayed wages are paid by the employer, to the employed person or his legal representative before the disposal of the application” shall be substituted.

(c) In the proviso, after the words “employed person” occurring twice, the words “or his legal representative” shall be inserted, and- (v) for sub-section (4), the following sub-sections shall be substituted, namely:

“(4) If the authority hearing any application under this section is satisfied, -

(i) That the application was either malicious or vexatious, the authority may direct that any penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(ii) That, in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be also paid by the employer or other person responsible for the payment of wages which shall, when paid or recovered, be credited to the State Government.

(4-A) Where a question arises as to whether any person is or is not a legal representative of the deceased employed person, such question shall be determined by the authority appointed under sub-section (1) and his decision shall be final.

(4-B) The payment of the amount directed to be paid under this section to the employed person or his legal representative, as the case may be, shall be a full and complete discharge of the employer from the liability to make such payment under this Act, and no further claim shall lie against the employer in respect thereof'.”12

MAHARASHTRA. -In Sec. 15 (1) for the words and figure, commencing with the words “appoint any” and ending with the words “to be the authority.” the words appoint one or more persons to be authority or authorities” have been substituted for the State of Bombay (which term stand unmodified (Gujarat and Maharashtra A.L.O. 1960).13

(a) After sub-section (1), the following new sub- sections shall be inserted, namely:

“(1-A) A person shall not be qualified for appointment as an authority under this Act unless he is a Commissioner for workmen's compensation or any other officer with experience as a Judge of a Civil Court or as a stipendiary Judicial Magistrate or as a judge of a Labour Court or as a judicial member of the Industrial Court constituted under the Bombay Industrial Relations Act, 1946 or as a presiding officer of a tribunal constituted under Industrial Tribunal Act, 1947.

(1-B) Where more than one persons are appointed for any specified area as authorities under sub-section (1), the State Government may by general or special order make such arrangements as it thinks fit for the distribution of the work among the authorities so appointed”.14

(b) In sub-section (2), -

(i) After the words “to act on his behalf', the words and figures “or a representative union registered as such under the Bombay Industrial Relations Act, 1946”, have been inserted;

(ii) After the word, brackets and figure “sub- section (3)”, the following have been inserted, namely:

“And in case of death of the employed person, it shall be lawful for his legal representative to make an application for such direction.”14

(iii) In both the provisos, for the words “six months”, the words “one year” have been substituted.15

(i) For the words “refund to the employed person”, the words “refund to the employed person or his legal representative, as the case may be”, have been substituted;

(ii) After the words “twenty-five rupees in the latter, the following words have been inserted, namely:

“And the authority may direct the payment of such compensation in cases, where the amount deducted or the delayed wages are paid by the employer to the employed person or his legal representative before the disposal of the application” ,

(iii) In the proviso, after the words “employed person at both the places where they occur, the words “or his legal representative” have been inserted.16

(d) For sub-section (4), substituted the following sub-section, namely

“(4) If the authority hearing any application under this section is satisfied-

(i) That the application was either malicious or vicarious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(ii) That, in any case in which compensation is directed to be paid under subsection (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty not exceeding fifty rupees be also paid by the employer or other person responsible for the payment of wages. The amount of such penalty when paid or recovered shall be credited to the State Govemment”.17

(e) For sub-section (5), the following has been substituted, namely

“(5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall, for the purpose, be deemed to be a public officer within the meaning of Sec. 5 of the Revenue Recovery Act, 1890”.18

(f) After sub-section (5), the following new sub- section has been added, namely:

“(6) Where a question arises as to whether any person is or is not a legal representative of the deceased employed person, such question shall be determined by the authority and the decision of the authority shall be final”.¹⁹

Section 15-A has been added by the Bombay Act No. LXII of 1953:

“15-A. Liability for payment of court-fees. -(1) In any proceedings under Sec. 15, the applicant shall not be liable to pay any court-fees (other than fees payable for service of process) in respect of such proceedings:

Provided that when the application is presented by an inspector he shall not be liable to pay the process fees also.

(2) Where the applicant succeeds in such proceedings the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for the payment of wages under Sec. 3 to pay such amount to the State Government. Such amount shall without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue”.20

RAJASTHAN. -In sub-section (1) of Sec. 15, after the expression “Stipendiary Magistrate”, the words “or Vikas Adhikari appointed under the Rajasthan Panchayat Samities and Zila Parishad Act, 1959 (Raj. Act 37 of 1959)”, shall be inserted.21

After Sec. 15, the following section shall be inserted, namely

“I5-A. Liability for payment of court-fees. -(1) In any proceedings under Sec. 15, the applicant shall not be liable to pay any court-fees (other than fees payable for service of process) in respect of such proceedings:

Provided that when the application is presented by an inspector, he shall not be liable to pay the process fees even.

(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court-fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for the payment of wages under Sec. 3, to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.”22

TAMIL NADU.-In Sec. 15 for subsection (5) the following sub-section has been substituted, namely:

“(5) If any amount directed to be paid under this section is not paid by the employer or by other person responsible for payment of wages under Sec. 3 to the person entitled thereto, the authority shall, on an application made to it by such person himself or any legal practitioner, or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, issue certificate for the amount to the Collector, who shall recover the same, as arrears of land revenue and pay the same to the person entitled thereto”.23

1. Ins. by Sec. 13, ibid., (w.e.f Ist February, 1965).

2. Subs. by Act 53 of 1964, Sec. 13, for the words “of persons employed or paid in that area” (w.e.f. Ist February, 1965).

3. Subs. by Act 53 of 1964, Sec. 13, for “six months” (w.e.f. 1st February, 1965).

4. Subs: by ibid., for the words “not exceeding ten rupees in the latter” (w.e.f. 1 st February, 1965).

5. Subs. by ibid., for sub-section (4) (w.e.f. 1st February, 1965).

6. Vide A.P. Act. of 1968, Sec. 2 (w.e.f. 26th October, 1968).

7. Vide ibid., Sec. 2 and Schedule.

8. See Gujarat Act XXVI of 196 1, Sec. 2.

9. Vide Haryana Act 5 of 1985, Sec. 2 (w.e.f. 12th April, 1985).

10. Vide Mysore Act XIII of 1965, Sec. 66 (w.e.f. 1st October, 1965).

11. Vide the Payment of Wages (Karnataka Amendment) Act, 1976 (Karnataka Act No. 2 of 1977), Sec. 5 : published in the Karnataka Gazette, Extraordinary, Pt. IV. dated 16th March, 1977.

12. Vide M.P. Act XI of 1964, Sec. 4 (w.e.f. 15th May, 1964).

13. Vide Bombay XLVIII of 1955, Sec. 3 (ci) (w.e.f. Ist July, 1956): Maharashtra Act, XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

14 . Vide Bom. Act XLVIII of 1955, Sec. 3 (w.e.f. Ist July, 1956): Mah. Act, XIII of 1961, See. 2 (w.e.f. 4th March, 1961).

15. Vide Bom. Act LXII of 1953, Sec. 4 (w.e. f. 10th May, 1954); Mah. Act XIll of 1961. Sec. 6 (w.e.f. March, 1961).

16. Vide Bom. Act XLVIII of 1955, Sec. 3 (w.e.f. Ist July. 1956) Mah. Act XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

17. Vide Bom. Act LXII of 1953, Sec. 4 (w.e.f. 10th May, 1954) Mah. Act XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

18. Vide Bom. Act LXX of 1954, Sec. 2 (w.e.f. 15th November. 1954): Mah. Act XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

19. Vide Bom. Act XLVIII of 1955; Sec. 3 (e) (w.e.f. lst July, 1956) : Mah. Act XIII of 1961, Sec. 2 (w.e.f. 4th March, 1961).

20. Vide Bom. Act LXII of 1953, Sec. 6 (w.e.f. 10th May, 1954) ; Mah. Act XIII of 1961. Sec. 2 (w.e.f. 4th March, 196 1).

21. Vide Raj. Act XI of 1976.

22. Vide Raj. Act XIII of 1970, Sec. 2 (w.e.f. 3rd December, 1970).

23. Vide Tamil Nadu Act 27 of 1986.

16. Single application in respect of claims from unpaid group. -Employed persons are said to belong to the same unpaid group if they are borne on the same establishment and if 1[deductions have been made from their wages in contravention of this Act for the same cause and during the same wage-period or periods or if their wages for the same wage-period or periods have remained unpaid after the day fixed by Sec. 5.

(2) A single application may be presented under Sec. 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case 2[every person on whose behalf such application is presented may be awarded maximum compensation to the extent specified in sub-section (3) of Sec. 15].

(3) The authority may deal with any number of separate pending applications presented under See. 15 in respect of persons belonging to the same unpaid group, as a single application presented under sub-section (2) of this section, and the provisions of that sub-section shall apply accordingly.

1. Ins. by Act 35 of 1964, Sec. 14 (w.e. f. 1st February, 1965).

2. Subs. by Act 5 3 of 1964, Sec. 14. for certain words (w.e.f. 1st February, 1965).

17. Appeal. -

(1) 1[An appeal against an order dismissing either wholly or in part an application made under sub-section (2) of Sec. 15, or against a direction made under sub-section (3) or sub-section (4) of that section] may be preferred, within thirty days of the date on which 2[the order or direction] was made, in a Presidency-town 3[* * *] before the Court of Small Causes and elsewhere before the District Court-

(a) By the employer or other person responsible for the payment of wages under Sec. 3, if the total sum directed to be paid by way of wages and compensation exceeds three hundred rupees 4[or such direction has the effect of imposing on the employer or the other person a financial liability exceeding one thousand rupees], or

5[(b) By an employed person or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf or any Inspector under this Act, or any other person permitted by the authority to make an application under sub-section (2) of Sec. 15, if the total amount of wages claimed to have been withheld from the employed person exceeds twenty rupees or from the unpaid group to which the employed person belongs or belonged exceeds fifty rupees, or].

7[(l-A) No appeal under Cl. (a) of sub-section (1) shall lie unless the memorandum of appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the Direction appealed against.]

8[(2) Save as provided in sub-section (1), any order dismissing either wholly or in part an application made under sub-section (2) of Sec. 15, or a direction made under sub-section (3) or sub-section (4) of that section shall be final.]

9[(3) Where an employer prefers an appeal under this section, the authority against whose decision the appeal has been preferred may, and if so directed by the Court referred to in sub-section (1) shall, pending the decision of the appeal, withhold payment of any sum in deposit with it.

(4) The Court referred to in sub-section (1) may, if it thinks fit, submit any question of the law for decision of the High Court and, if it so does shall decide the question in conformity with such decision.]

1. Subs. by Act 68 of 1957. Sec. 7, for “An appeal against a direction made under sub-section (3) or sub-section (4) of Sec. 15” (w.e.f. Ist April, 1958).

2. Subs. by Sec. 7, ibid. for’ the direction” (w.e.f. Ist April 1958).

3. The words “or in Rangoon” omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.

4. Ins. by Act 53 of 1964, Sec. 15 (w.e.f. Ist February. 1965).

5. Subs. by ibid.. for “Cl. (b)” (w.e.f. Ist February. 1965).

6. Subs. by Act 20 of 1937. Sec. 2 and Sch. 1. for “sub-section (5)”.

7. Ins. by Act 53 of 1964, Sec. 15 (w.e.f. Ist February, 1965).

8. Subs. by Act 68 of 1957. Sec. 7. for sub-section (2) (w.e.f. Ist April, 1958).

9. Ins. by Act 53 of 1964. Sec. 15 (w.e.f. Ist February, 1965).

STATE AMENDMENTS

GUJARAT.-In Sec. 17 of the principal Act, in sub- section (1),-

(1) For Cl. (b), the following shall be substituted, namely:

“(b) By an employed person, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or a representative union authorised in writing the Bombay Industrial Relations Act, 1946 (Bom. Act XI of 1947), or any inspector under this Act, or any other person authorised by an authority to make an application under sub-section (2) of Sec. 15, and in the case of death of the employed person by his legal representative, as the case may be, if the total amount of wages claimed to have been withheld from the employed person, or from the unpaid group to which the employed person belonged, exceeds fifty rupees, or”;

(2) After the first proviso, the following shall be added, namely. -

“Provided further that, when the order or direction appealed against was made by any person who holds or has held office of or above the rank of a District Judge or a judicial member of the Industrial Court constituted under the Bombay Relations Act, 1946 (Bom. Act XI of 1947) or the presiding officer to' a tribunal constituted under the Industrial Disputes Act, 1947 (XIV of 1947) an appeal under this section shall lie to the High Court.”1

(3) The following proviso has been added, namely. -

“Provided that no appeal by an employer or other person responsible for the payment of wages under Sec. 3, under Cl. (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the authority, to the effect that the appellant has deposited with it the amount payable under the order appealed against”:2

Provided further that, when the order or direction appealed against was made by any person who holds or has held officer of or above the rank of a District Judge or a judicial member of the Industrial Court constituted under the Bombay Industrial Relations Act, 1946 (Bom. Act XI of 1947), or the presiding officer of a tribunal constituted under the Industrial Disputes Act, 1947 (XIV of 1947), an appeal under this section shall lie to the High Court.”3

In sub-section (2), -

(i) After the brackets and figure “(4)”, the words, brackets, figure and letter or any order made under sub-section (3-A)” shall be inserted;4

(ii) After sub-section (2), the following sub-section shall be added namely:

“(3) The provisions of Sec. 5 of the Limitation Act, 1908 (now. 1963) shall be applicable to appeals under this section”.5

KARNATAKA. -In Sec. 17 of the principal Act,-

(1) In sub-section (2), after the words, brackets and figure “sub-section (4)of that section”, the words, brackets, figures, and letter “or any order made under sub-section (1) of Sec. 17-A” shall be inserted;

(3) After sub-section (4), the following sub-section shall be added, namely:

“(5) The provisions of Sec. 5 of the Limitation Act, 1963, shall be applicable to appeals under this section”.6

MADHYA PRADESH. -In Sec. 17, -

(i) In sub-section (1), -

(a) For the words “in a Presidency-town before the Court of Small Causes and elsewhere before the District Court”, the words “before the Industrial Court” shall be substituted;

(b) In Cl. (b), after the words “by an employed person”, the words “or his legal representative or any inspector under this Act” shall be inserted;

Provided that no appeal by an employer or other person responsible for the payment of wages Cl. (a) of proviso to Sec. 3 shall lie unless the memorandum of appeal is accompanied by certificate by the authority to the effect that the appellant has deposited with it, the amount payable under the order appealed against”,

(ii) After sub-sectic-1 (2), the following sub-section shall be inserted, namely:

“(3) The provisions of Sec. 5 of the Indian Limitation Act, 1963, shall be applicable to appeals under this section”.7

MAHARASHTRA. -Same as that of Gujarat.8

1. Vide the Gujarat Act No. XXVI of 1961, Sec. 6, published in the Gujarat Government Gazette. Extraordinary. Pt. IV, dated 12th June, 1961.

2. Vide Bom. Act LXII of 1953, Sec. 6.

3. Vide Guj. Act XXVI of 1961, Sec. 6 (w.e.f. 12th June, 1961).

4. Vide Bom. Act LXII of 1953, Sec. 6 (w.e.f. 10th May, 1954).

5. Vide Bom. Act LXII of 1953, Sec. 6 (w.e.f. 10th May, 1954).

6. Vide the Payment of Wages (Karnataka Amendment) Act, 1976 (Karnataka Act No. 2 of 1977), sec. 7, published in the Karnataka Gazette. Extraordinary, Pt. IV, dated 16^th March 1977

7. Vide M.P. Act YJ of 1964, Sec. 5 (w.e.f. 15th May, 1964).

8. Vide Bom. Act LXIII of 1953, and Mah. Act XIII of 1961 (w.e.f. 4th March. 1961).

1[17-A.Conditional attachment of property of employer or other person responsible for payment of wages. –

(1) Where at any time after an application has been made under sub-section (2) of Sec. 15 the authority, or where at any time after an appeal has been filed under Sec. 17 by an employed person or 2[any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf or any Inspector under this Act or any other person omitted by the authority to make an application under sub-section (2) of Sec. 15] the Court referred to in that section, is satisfied that the employer or other person responsible for the payment of wages under Sec. 3 is likely to evade payment of any amount that may be directed to be aid under Sec. 15 or Sec. 17,the authority or the Court, as the case may be, except in case where the authority or Court is of opinion that the ends of justice would be defeated by the delay, after giving the employer or other person an opportunity of being heard, may direct the attachment of so much of the property of the employer or other person responsible for the payment of wages as is, in the opinion of the authority or Court, sufficient to satisfy the amount which may be payable under the direction..

(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to attachment before judgment under that Code shall, so far as may be, apply to any order for attachment under sub-section (1).]

STATE AMEDMENTS

GUJARAT. -In Sec. 17-A as inserted in the principal Act, by Sec. 8 of the Payment of Wages (Amendment) Act, 1957 (LXVIII of 1957) in sub-section (1) for the words “any official of registered trade union authorized in writing to act on his behalf', the words “any other person or a representative union competent to present such appeal” shall be substituted.3

After Sec. 17-A of the said Act, the following section shall be inserted, namely:

4[17-B]. Provisions of Sec. 15-A to apply to appeals preferred under Sec. 17 with modification. When an appeal is preferred under Sec. 17 by a person making an application under Sec.15, the provisions of Sec.15-A shall mutatis mutandis apply, with the modification that such person, not being an inspector shall pay court-fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal”.5

MAHARASHTRA. -Same as that of Gujarat.6

RAJASTHAN. -Same as that of Maharashtra.7

1. Ins. by Act 68 of 1957, Sec. 8 (w.e.f. Ist April, 1958).

2. Subs. by Act 53 of 'I 964, Sec. 16, for certain words (w. e.f. Ist February, 1965).

3. Vide the Gujarat Act No. XXVI of 1961, for Sec. 7. published in the Gujarat Gazette, Extraordinary, Pt. IV, dated 12th June. 1961.

4. Renumbered by Gujarat Act No. of 1961, Sec. 3, published In the Gujarat Gazette Extraordinary, Pt. IV, dated 12th June, 1961.

5. Vide Bombay Act No. LXX of 1954, Sec. 3, published in the Bombay Government Gazette, Extraordinary, Pt. IV, dated 15th November, 1954 and Guj. Act XIV of 1961, Sec. 8.

6. Vide Maharashtra Act No. XIII of 1961 (w.e.f. 4th March, 196 1).

7. Vide Rajasthan Act 13 of 1970, Sec. 3 (w.e.f. 3rd December, 1970).

18. Powers of authorities appointed under Sec. 15.-Every authority appointed under sub-section (1) of See 15 shall have all the powers of a Civil Court under the Code of 'Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of Sec. 195 and of 1[Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].

1. Subs. by the payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 10 (w.e.f. 15^th October, 1982).

19. [Power to recover from employer in certain cases]. -Rep. by the Payment of Wages (Amendment) Act, 1964 (53 of 1964), Sec. 17 (w.e.f. Ist February 1965).

20. Penalty for offences under the Act. -

(1) Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following sections, namely, l[Sec. 5 except sub-section (4) thereof, Sec. 7, Sec. 8 except sub-section (8) thereof, Sec. 9, Sec. 10 except sub-section (2) thereof, and Secs. 12 to 131, both inclusive, shall be punishable with fine 2[which shall not be less than two hundred rupees but which may extend to one thousand rupees.].

(2) Whoever contravenes the provisions of Sec. 4 3[sub-section (4) or Sec. 5, Sec. 6, sub-section (8) of Sec. 8, sub-section (2) of Sec. 10] or Sec. 25 shall be punishable with fine which may extend to 4[five hundred rupees.]

5[(3) Whoever being required under this Act to maintain any records or registers or to furnish any information or return-

(a) Fails to maintain such register or record; or

(b) Wilfully refuses or without lawful excuse neglects to furnish such information or return ; or

(d) Refuses to answer or wilfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act:

Shall for each such offence, be punishable with fine 3[which shall not be less than two hundred rupees but which may extend to one thousand rupees].

(4) Whoever-

(a) Wilfully obstructs an Inspector in the discharge of his duties under this Act, or

(b) Refuses or wilfully neglects to afford an Inspector any reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorised by or under this Act in relation to any railway factory or 3[industrial or other establishment]; or

(c) Wilfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act: or

(d) Prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act;

Shall be punishable with fine I[which shall not be less than two hundred rupees but which may extend to one thousand rupees].

(5) If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term 6[which shall not be less than one month but which may extend to six months and with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees]:

Provided that for the purpose of this sub-section, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offence, which is being punished, came to the knowledge of the Inspector.

(6) If any person fails or wilfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to 7[one hundred rupees] for each day for which such failure or neglect continues).

1. Ins. by Act 53 of 1964, Sec. 15 (w.e.f. lst February. 1965).

2. Subs. by the Payment of Wages (Amendment) Act, -1982 (38 of 1982), Sec. 11, for certain words (w.e.f. 15th October. 1982).

3. Subs. by Act 53 of 1964, Sec. 18, for “Sec. 6” (w.e.f lst February, 1965).

4. Subs. by the Payment of Wages Amendment) Act. 1982 (38 of 1882). Sec. 11, for the words “two hundred rupees” (w.e.f. 15th October, 1982).

5. Ins. by Act 53 of 1964, Sec. 18 (w.e.f. I st February, 1965).

6. Subs. by the Payment of Wages Act, 1982 (38 of 1982). Sec. 11. for certain words (w.e.f. 15th October, 1982).

7. Subs. by ibid., for the words “fifty rupees” (w.e.f 15th October, 1982).

STATE AMENDMENTS

GUJARAT. -In Sec. 20 of the principal Act in its application to State of Gujarat-

In sub-section (1) for the words “five hundred”, the words “two thousand rupees” shall be substituted.1

MADHYA PRADESH.-In sub-section (1) of Sec. 20 of the principal Act, for the words “five hundred rupees”, the words “two thousand rupees” shall be substituted.2

MAHARASHTRA.-Same as that of Gujarat.3

1. Vide Bom. Act LXII of 1953: Guj. Act of 1961.

2. Vide M.P. Act XI of 1964, Sec. 6 (w.e.f. 15th May, 1964).

3. Vide Bom. Act LXII of 1953 and Mah. Act XIII of 1961 (w.e.f. 4th March, 1961).

21. Procedure in trial of offences. -

(1) No Court shall take cognizance of a complaint against any person for an offence under sub-section (1) of Sec. 20 unless an application in respect of the facts constituting the offence has been presented under Sec. 15 has been granted wholly or in part and the authority empowered under the later section or the Appellate Court granting such application has sanctioned the making of the complaint.

(2) Before sanctioning the making of a complaint against any person for an offence under sub-section (1) of Sec. 20, the authority empowered under Sec. 15 or the Appellate Court, as the case may be, shall give such person an opportunity of showing cause against the granting of such sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his default was due to-

(a) A bonafide error or bonafide dispute as to the amount payable to the employed person, or

(b) The occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment; or

(3) No Court shall take cognizance of a contravention of Sec. 4 or of Sec. 6 or of a contravention of any rule made under Sec. 26 except on a complaint made by or with the sanction of an inspector under this Act.

1[(3-A) No Court shall take cognizance of any offence punishable under sub-section (3) or sub-section (4) of Sec. 20 except on a complaint made by or with the sanction of an inspector under this Act.]

(4) In imposing any fine for an offence under sub-section (1) of Sec. 20 the Court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under Sec. 15.

STATE AMENDMENTS

GUJARAT. -In Sec. 21, -

(1) In sub-section (1) for the words “and the authority empowered under the latter section or the Appellate Court granting such application”, the words “by the authority or the Appellate Court and the State Government or any officer authorized by it in this behalf' have been substituted

(2) In sub-section (2),-

(i) For the words and figures “the authority empowered under Sec. 15 or the Appellate Court”, the words “the State Government or the officer authorized by it in this behalf' have been substituted;

(ii) For the words “the authority or Court”, the words “the State Government or the authorized officer” have been substituted;

(iii) After the words “employed person” at both the places where they occur, the words “or his legal representative” has been inserted.

KARNATAKA. -In Sec. 21 of the principal Act,-

(1) In sub-section (1), for the words “and the authority empowered under the latter section or the Appellate Court granting such application”, the words” by the authority or the Appellate Court or the State Government or any officer authorized by it in this behalf shall be substituted;

(2) In sub-section (2) for the words and figures “the authority empowered under Sec. 15 or the Appellate Court”, the words “the State Government or the officer authorized by it in this behalf shall be substituted.3

MADHYA PRADESH. -In sub-section (2) of Sec. 21 of the principal Act,

(a) In Cl. (a), after the words “employed person”, the words, 'or his legal representative” shall be inserted; and

(b) In Cl. (c), after the words “employed person”, the words, “or his legal representative” shall be iriserted.4

MAHARASHTRA. Same as that of Gujarat.5

1. Ins. by Act 53 of 1964, Sec. 19 (w.e.f Ist February. 1965).

2. Vide Bom. Acts XLVIII of 1955. Sec. 5 ; LXII of 1953, Sec. 8: Guj. XXVI of 1961. Sec. 2 (w.e.f. 12th June, 1961).

3. Vide the Karnataka Act No. 2 of 1977, sec. 8, published in the Karnataka Gazette Extraordinary, pt. IV, mated 16^th March, 1977.

4. Vide M.P. Act XI of 1964 sec. 7 (w.e.f. 15th May, 1964).

5. Vide Bom. Acts LXII of 1953, sec. 8 : Bom. XLVIII of 1955, sec. 5 and Mah. Act XIII of 1961, sec. 2 (w.e.f. 4^th March, 1961.

22. Bar of suits. -No Court shall entertain any suit for the recovery of wages or of any deduction from wages in so far as the sum so claimed-

(a) Forms the subject of an application under Sec. 15 which has been presented by the plaintiff and which is pending before the authority appointed under that section or of any appeal under Sec. 17; or

(b) Has formed the subject of a direction under Sec. 15 in favour of the plaintiff; or

(d) Could have been recovered by an application under Sec. 15.

1[22-A. Protection of action taken in good faith. -No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government for anything which is in good faith done or intended to be done under this Act.]

1. Ins. by Act 53 of 1964, Sec. 20 (w.e.f I st February, 1965).

23. Contracting out. -Any contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.

1[24. Application of Act to railways, air transport services, mines and oilfields. -The powers by this Act conferred upon the State Government shall, in relation to 2[railway], 3[air transport services], mines and oilfields, be powers of the Central Government.]

1. Subs. by the Government of India (Adaptation of India Laws) Order, 1937, for the original sec. 24.

2. Subs. by the Adaptation of Laws Order, 1950 for the words “Federal railways (within the meaning of the Government of India Act, 1935)”.

3. Ins. by Act 53 of 1964, Sec. 21 (w.e.f. 1 st February, 1965).

25. Display by notice of abstracts of the Act. -The person responsible for the payment of wages to persons 2[employed in a factory or an industrial or other establishment] shall cause to be 1[displayed in such factory or an industrial or other establishment) a notice containing such abstracts of this Act and of the rules made thereunder in English and in the language of the majority of the persons 1[employed in the factory or industrial or other establishment] as may be prescribed.

1. Ins. by Act 53 of 1964, Sec. 21 (w.e.f. 1st February, 1965).

2. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 12 (w.e.f. 15^th October, 1982).

1[25-A. Payment of undisturbed wages in cases of death of employed person. –

(1) Subject to the other provisions of the Act, all amounts payable to an employed person as wages shall if such amounts could not or cannot be paid on account of death before payment of on account of his whereabouts not being known, -

(a) Be paid to the person nominated by him in this behalf in accordance with the rules made under this Act; or

(b) Where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the prescribed authority who shall deal with the amounts so deposited in such manner as may be prescribed. (2) Where, in accordance with the provisions of sub section (1), all amounts payable to an employed person as wages-

(a) Are paid by the employee to the person nominated by the employed person; or

(b) Are deposited by the employer with the prescribed authority, employer shall be discharged of his liability to pay those wages.]

1. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982) Sec. 13.

26. Rule-making-power. -

(1) The State Government may make rules to regulate the procedure to be followed by the authorities and Courts referred to in Secs. 15 and 17.

(2) The State Government may, 1[* * *]by notification in the official Gazette, make rules for the purpose of carrying into effect the provisions of this Act.

(3) In particular and without prejudice to the generality of the foregoing power, rules made under sub-section (2) may-

(a) Require the maintenance of such records, registers, returns and notices as are necessary for the enforcement of the Act 2[prescribe the form thereof and the particulars to be entered in such registers or records];

(b) Require the display in a conspicuous place or premises where employment is carried on of notices specifying rates of wages payable to persons employed on such premises;

(c) Provide for the regular inspection of the weights, measures and weighing machines used by employers in checking or ascertaining the wages of persons employed by them ;

(d) Prescribe the manner of giving notice of the days on which wages will be paid;

(e) Prescribe the authority competent to approve under sub-section (1) of Sec. 8 acts and omissions in respect of which fines may be imposed;

(f) Prescribe the procedure for the imposition of fines under Sec. 8 and for the making of the deductions referred to in Sec. 10;

(g) Prescribe the conditions subject to which deductions may be made under the proviso to sub-section (2) of Sec. 9;

(h) Prescribe the authority competent to approve the purposes on which the proceeds of fines shall be expended;

(i) Prescribe the extent to which advances may be made and the instalments by which they may be recovered with reference to Cl. (b) of Sec. 12 ;

3[(i-a) Prescribe the extent to which loans may be granted and the rate of interest payable thereon with reference to Sec. 12-A ;

(i-b) Prescribe the powers of inspectors for the purposes of this Act,]

(j) Regulate the scales of costs, which may be allowed in proceedings under this Act;

(k) Prescribe the amount of court-fees payable in respect of any proceedings under this Act; 4[* * *]

(l) Prescribe the abstracts to be contained in the notices required by Sec. 25: 5[* * *]

6[l-a) Prescribe the form and manner in which nominations may be made for the purposes of sub-section (1) of Sec. 25-A, the cancellation or variation of any such nomination, or the making of any fresh nomination in the event of the nominee predeceasing the person making nomination, and other matters connected with such nominations;

(l-b) Specify the authority with whom amounts required to be deposited under Cl. (b) of sub-section (1) of Sec. 25-A shall be deposited and the manner in which such authority shall deal with the amounts deposited with it under that clause].

7[(m) Provide for any other matter which is to be or may be prescribed.]

(4) In making any rule under this section the State Government may provide that a contravention of the rule shall be punishable with fine, which may extend to two hundred rupees.

(5) All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under Cl. (3) of Sec. 23 of the General Clauses Act, 1897 (10 of 1897), shall not be less than three months from the date on which the draft of the proposed rules was published.

8[(6) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in 9[two or more successive sessions] and if, before the expiry of the session 9[immediately following the session or the successive sessions aforesaid] both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

1. The words “subject to the control of the Governor-General in Council” omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.

2. Subs. by act 54 of 1964, Sec. 22, for “and prescribe the form thereof'(w.e.f lst February, 1965).

3. Ins. by Act 53 of 1964, Sec. 22, (w.e.f. Ist February 1965).

4. The word “and” omitted by Act 53 of 1964, (w.e.f. 1^st February 1965).

5. The word “and” omitted by Act 38 of 1982, Sec. 14 (w.e.f. 15th October, 1982).

6. Ins. by ibid

7. Ins. by Act 53 of 1964, Sec. 22 (w.e. f. 1st February, 1965).

8. Subs. by the Payment of Wages (Amendment) Act, 1982 (38 of 1982), Sec. 14 (w.e.f. 15th October, 1982).

9. Vide Bihar Act No. IV of 1963. Sec. 3, published in the Bihar Gazette, Extraordinary. No. 165. dated 29th March. 1963 (w.e.f. 29th March. 1963).

STATE AMENDMENTS

BIHAR. - After Cl. (d) of sub-section (3) of Sec. 26 of the principal Act, the following clause has been inserted, namely:

“(dd) Prescribe the manner in which the excess amount of the bonus shall be paid or invested under Sec. 6.”1

GUJARAT. -In Sec. 26 of the principal Act, -

(1) After Cl. (d). the following new clause shall be added namely:

“(d-a) Prescribing the manner in which excess amount of the bonus shall be paid or invested under Sec. 6.”

(2) In Cl. (k). -

(a) For the words “court-fees”, the words “ad valorem or fixed court-fees shall be substituted.1

(b) The word “and” shall be omitted.

KARNATAKA. -In Sec. 26 of the principal Act, -

In sub-section (3). in Cl. (k), for the words “court-fees”, the words “ad valorem or fixed court-fees” shall be substituted.2

MAHARASHTRA. -Same as that of Gujarat.3

1. Vide Bom. Act XLII of 1953, Sec. 9 (w.e.f. 10th May. 1954); Guj. Act XXV] of 1961, Sec. 2 (w.e.f. 12th June. 1961).

2. Vide Knt. Act 11 of 1977, Sec. 9.

3. Vide Bom. Act LXII of 1953, Sec. 9: Mah. Act XIII of 1961. Sec. 2 (w.e.f. 4th March. 1961).