Section 19 in The Payment Of Wages Act, 1936

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19.

/838Statement of Objects and Reasons.-In 1926 the Government of India addressed Local Governments with a view to ascertain the position with regard to the delays which occurred in the payment of wages to persons employed in industry, and the practice of imposing fines upon them. The investigations revealed the existence of abuses in both directions and the material collected was placed before the Royal Commission on Labour which was appointed in 1929. The Commission collected further evidence on the subject......... The Government of India re-examined the subject in the light of the Commission's Report and in February 1933 a Bill embodying the conclusions then reached was introduced and circulated for the purpose of eliciting opinion. A motion for the reference of the Bill to a Select Committee was tabled during the Delhi Session of 1933-34, but was not reached, and the Bill lapsed. The present Bill is based upon the same principles as the original but has been revised throughout in the light of criticisms received when the original Bill was circulated.Amendment Act 22 of 1937-Statement of Objects and Reasons.-Section 9 of the Payment of Wages Act although relieving the employer from payment to workers who are not present for work appears to render him liable to pay wages to persons who although present decline to work. The explanation is intended to remedy the defect.Amendment Act 68 of 1957-Statement of Objects and Reasons.-By the enactment in 1936 for the Payment of Wages Act, it was intended to ensure that-

(i)wages actually disbursable to workers covered by the Act are disbursed within the prescribed wage-period; and

(ii) employees get their full wages without any deductions which are not specially authorised by the law.The working of the Act has shown that the Act requires to be amended in certain respects. It is also considered desirable to extend the benefits of the Act to a larger category of persons. The important proposals relate to raising the wage limit from Rs. 200 a month to Rs. 400, extension of the Act to construction industry and revision of the definition of the term "wages"..........Amendment Act 53 of 1964-Statement of Objects and Reasons.-The Payment of Wages Act, 1936, was enacted with a view to ensuring that wages actually disbursable to workers covered by the Act are disbursed within the prescribed time-limit and that employees get their full wages without any deductions not authorised by law. Though the Act has been amended from time to time and certain major amendments were effected in 1957, the experience of the working of the Act has revealed certain other difficulties. With a view to remove these difficulties, it is now proposed-(a) to widen the coverage of the Act so as to make it applicable to all factories to which provisions of the Factories Act, 1948, have been extended by the State Governments;(b) to include in the definition of "industrial establishment" air transport services other than military, naval and air forces and motor transport services,(c) to permit deductions from wages of employees on account of grant of advances for various purposes such as purchase of cycles or grant of loans for house-building purposes and loans from labour welfare fund, travelling allowance, etc.,(d) to provide, as recommended by Public Accounts Committee, for the recovery of losses to the railways due to acts of omission or commission on the part of the employees,(e) to provide for the fixation of an outer limit for deductions from wages,(f) to enlarge the powers of Inspectors so as to ensure proper inspection and better enforcement of the provisions of the Act, and(g) to clarify that the jurisdiction of the authorities appointed to hear claim applications empowers them to decide incidental matters.These are broadly the main features of the amending Bill. Opportunity has also been taken to make certain other amendments of a minor character.The notes on clauses explain the various changes proposed to be made.Amendment Act 29 of 1976-Statement of Objects and Reasons.-The Payment of Wages Act, 1936 requires the employers to make timely payment of wages to the persons employed by them. It also protects the employed person against arbitrary fines being imposed and unauthorised deductions being made from their wages by the employers.2. An Ordinance to amend the Payment of Wages Act, 1936 was promulgated by the President on the 12th November, 1975 to provide for (i) raising of the wage limit from Rs. 400 to Rs. 1,000 a month, having regard to the present wage levels, (ii) the payment of wages by cheques subject to the consent of the employed person, and (iii) deductions from wages to be made with the written authorisation of the employed person for contribution to the Prime Minister's National Relief Fund or any other similar Fund that may be specified by the Central Government in the Official Gazette.Amendment Act 19 of 1977-Statement of Objects and Reasons.-The Payment of Wages Act, 1936 regulates the payment of wages to certain classes of persons employed in industry. Sub-section (2) of section 7 of the Act provides for certain deductions specified in that sub-section from the wages of an employed person, in accordance with the provisions of the Act.To promote the welfare of its employees, the Central Government has devised an insurance scheme to which contributions will be made by the employees concerned. In order to permit deductions for contributions to that scheme from the wages of the employees covered by the Payment of Wages Act, 1936, it is proposed to amend sub-section (2) of section 7 of the Act suitably.Amendment Act 38 of 1982-Statement of Objects and Reasons.-The Payment of Wages Act, 1936 regulates the payment of wages to certain classes of persons employed in industry. It was enacted to ensure that the wages payable to employees covered by the Act are disbursed by the employers within the prescribed time-limit and that no deductions other than those authorised by law are made by the employers. The Act applies proprio vigore to the payment of wages to persons employed in any factory or to persons employed in a railway by a railway administration either directly or through a sub-contractor. Further, the State Governments are empowered to extend the provisions of the Act to cover persons employed in any industrial establishment or any class or group of industrial establishments as defined in the Act. The wage-limit for the applicability of the Act is Rs. 1,000 per mensem. It is proposed to amend the Act with a view to extending its protection to a larger number of persons and making the provisions of the Act more effective and beneficial.2. With the aforementioned objects in view, the Bill seeks to make the following amendments in the Act:-(i) The provisions of the Act are being made applicable automatically and without any notification by the State Government to persons employed in the various categories of industrial establishments falling within the purview of the existing definition of the industrial establishment in the Act (clause 3(a) of the Bill).(ii) The existing definition of "industrial establishment" is being converted as a definition of "industrial or other establishment" and a residuary clause is being provided to enable the Central Government and the State Governments to bring within the purview of the definition, by notification in the Official Gazette, other establishments. It is also being provided that the State Governments may extend the provisions of the Act to other establishments which are so brought within the purview of the definition, subject to the prior concurrence of the Central Government in the case of any such industrial establishment which is owned by the Central Government (clause 3(b) and clause 4 of the Bill).(iii) The existing wage-limit for applicability of the Act is being enhanced from Rs. 1,000 to Rs. 1,600 per month (clause 3(c) of the Bill).(iv) Section 7 of the Act relating to the deductions which may be made by an employer from the wages payable to an employed person is being amended to enable deductions being made, with the written authorisation of such an employed person, for payment of the employees' contribution to any welfare fund constituted by the employer for the welfare of employed persons and the members of their families and also for payment of the fees payable any the employed person for membership of dny trade union (clause 7 of the Bill.)(v) The punishment for contravention of the provisions of the Act under section 20 of the Act are being made more stringent (clause 11 of the Bill).(vi) Provision is being made for payment of amounts due to an employed person at the time of his death to a nominee of such employed person (clause 13 of the Bill).(vii) The other amendments proposed in the Bill are of a minor, formal or consequential nature.Amendment Act 41 of 2005-Statement of Objects and Reasons.-The Payment of Wages Act, 1936 was enacted with a view to ensuring that wages payable to employed persons covered by the Act were disbursed by the employers within the prescribed time limit and that no deductions other than those authorised by law were made by them. The last amendment was made in 1982 and several provisions of the Act have become obsolete over the years. Many proposals have been received by the Government for amending various provisions which are creating practical difficulties in enforcement of this Act. In order to bring this law in uniformity with other labour laws as also to make it more effective and practicable, it is proposed to make, inter alia, the following changes:-(i) Enhancing the wage ceiling of Rs. 1600 per month to Rs. 6500 per month: The then existing ceiling of Rs. 1000 per month was last revised to Rs. 1600 per month in 1982. Since then a large number of employed persons have gone out of the purview of the Act due to successive rise in wages levels resulting from rise in the cost of living. Thus, with a view to covering more employed persons, it is proposed to enhance the wage ceiling from Rs. 1600 per month to Rs. 6500 per month.(ii) To substitute the expressions "the Central Government" or "a State Government" by the expression "appropriate Government": In Parliamentary enactments relating to labour, other than the Payment of Wages Act, 1936, the enforcing authorities are either the Central Government or the State Governments depending upon the nature of industry. However, for implementing the Payment of Wages Act, 1936, matters are referred to the State Governments and quite often action required to be taken by them is delayed. In order that this law is in conformity with the other labour laws, it is proposed to introduce the concept of "appropriate Government".(iii) Removing the ambiguities/weakness from the extant provisions of the Act and prescribing more effective grievance redressal: Over the years, it has been noticed that certain provisions of the Act have been differently interpreted thus leading to administrative difficulties in implementing the same. In order to remove ambiguities, appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which respectively deal with responsibility for payment of wages, deductions from wages fines and claims in certain cases.(iv) Strengthening compensation and penal provisions of the Act: The penal provisions of the Act have become almost insignificant due to passage of time as well as decrease in money value since these provisions were last amended in 1982. It is, therefore, proposed to make the penal provisions more stringent by enhancing the quantum of penalties by amending section 20 of the Act.[23rd April, 1936]An Act to regulate the payment of wages of certain classes of [employed persons] [ Substituted by Act 38 of 1982, Section 2, for " persons employed in industry" (w.e.f. 15.10.1982).].Whereas it is expedient to regulate the payment of wages to certain classes of [employed persons] [Substituted by Act 38 of 1982, Section 2, for " persons employed in industry" (w.e.f. 15.10.1982). ];It is hereby enacted as follows:-

This Act has been extended to the new Provinces and merged States by the Merged States (Laws) Act 59 of 1949 and to the States of Manipur, Tripura and Vindhya Pradesh by the Union Territories (Laws) Act 30 of 1950. Manipur and Tripura are full-fledged States now, see Act 81 of 1971. Vindhya Pradesh is a Part of Madhya Pradesh State now, see Act 37 of 1956.The Act, as in force in the Madhya Bharat region immediately before the appointed day, is extended from that date to all the other regions of the State of Madhya Pradesh, see Section 3(2),-M.P. Extension of Laws Act 23 of 1958.It has been extended to the Union territories of (1) Goa, Daman and Diu by Regulation 12 of 1962 (Goa is now a State, see Act 18 of 1987); (2) Dadra and Nagar Haveli by Regulation 6 of 1963; (3) Pondicherry by Regulation 7 of 1963 and (4) Laccadive, Minicoy and Amindivi Islands by Regulation 8 of 1965. These islands are now known as Lakshdweep, see Act 34 of 1973.It does not apply to members of the Railway Protection Force-See Section 19 of the Railway Protection Force Act 23 of 1957, or to the members of the Central Industrial Security Force-See Section 20 of the Central Industrial Security Force Act 50 of 1968.2. Brought into force on 28.3.1937. The Act came into force in the State of Sikkim with effect from 30.11.1995.

Section 19 in The Payment Of Wages Act, 1936

19.

(i)wages actually disbursable to workers covered by the Act are disbursed within the prescribed wage-period; and

Section 19 in The Payment Of Wages Act, 1936

19.

(i)wages actually disbursable to workers covered by the Act are disbursed within the prescribed wage-period; and

Section 19 in The Payment Of Wages Act, 1936

19.

(i)wages actually disbursable to workers covered by the Act are disbursed within the prescribed wage-period; and