Act 04 of 1936 : The Payment of Wages Act, 1936

22 Apr 1936
Ministry
  • Ministry of Labour and Employment
Enforcement Date

27 Mar 1937

The Payment of Wages Act, 1936

ACTNO. 04 OF 1936
23 April, 1936

Section 1: Short title, extent, commencement and application.

(1) This Act may be called the Payment ofWages Act, 1936.

1[(2) It extends to the whole of India 2.]

(3) It shall come into force on such date3as the Central Government may, by notification in theOfficial Gazette, appoint.

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

(5) 6[Appropriate Government] may, after giving three months notice of its intention of so doing, bynotification in the Official Gazette, extend the provisions of 7[this Act] or any of them to the payment ofwages to any class of persons employed in 8[any establishment or class of establishments specified by9[appropriate Government] under sub-clause @i2(h) of clause (ii) of section 2]:

10[Provided that in relation to any such establishment owned by the Central Government no suchnotification shall be issued except with the concurrence of that Government.]

11[(6) This Act applies to wages payable to an employed person in respect of a wage period if suchwages for that wage period do not exceed 12[twenty four thousand rupees] per month or such other highersum which, on the basis of figures of the Consumer Expenditure Survey published by the NationalSample Survey Organisation, the Central Government may, after every five years, by notification in theOfficial Gazette, specify.]

1. Subs. by the A.O. 1950, for sub-section (2).

2. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).

3. 28th March 1937, see Gazette of India, 1937, Pt. I, pg. 626.

4. Subs. by Act 38 of 1982, s. 3, for "factory and to persons" (w.e.f. 15-10-1982).

5. Ins. by s. 3, ibid. (w.e.f. 15-10-1982).

6. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

7. Subs. by Act 68 of 1957, s. 2, for "the Act" (w.e.f. 1-4-1958.)

8. Subs. by Act 38 of 1982, s. 3, for "any industrial establishment or in any class or group of industrial establishments"(w.e.f. 15-10-1982).

9. Subs. by Act 41 of 2005, s. 3, for "the Central Government or a State Government" (w.e.f. 9-11-2005).

10. Subs. by Act 38 of 1982, s. 3, for the proviso (w.e.f. 15-10-1982).

11. Subs. by Act 41 of 2005, s. 2, for sub-section (6) (w.e.f. 9-11-2005).

12. Subs. by S.O. 2806 (E), dated 28-8-2017, for "eighteen thousand rupees", see Gazette of India, Extraordinary, Part II, s. 3(ii).

Rules

01-01-1937The payment of Wages (Procedure) Rules, 1937 PDF
13-11-2009PW_Nomination Rules PDF

Notifications

26-04-2017Specification of establishment under the section 6 of the Payment of Wages Act, 1936 PDF
29-08-2017Wage Ceiling under Payment of Wages Act, 1936 PDF

Statutes

26-02-2017THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017 PDF

Section 2: Definitions.

In this Act, unless there is anything repugnant in the subject or context,

1[(i) "appropriate Government" means, in relation to railways, air transport services, mines andoilfields, the Central Government and, in relation to all other cases, the State Government;]

2[3[(ia)] "employed person" includes the legal representative of a deceased employed person;

3[(ib)] "employer" includes the legal representative of a deceased employer;

3[(ic)] "factory" means a factory as defined in clause (m) of section 2 of the Factories Act, 1948(63 of 1948), and includes any place to which the provisions of that Act have been applied undersub-section (1) of section 85 thereof;]

(ii)4["industrial or other establishment" means] any--

5[(a) tramway service, or motor transport service engaged in carrying passenger or goods orboth by road for hire or reward;

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

(b) dock, wharf or jetty;

6[(c) inland vessel, mechanically propelled;]

(d) mine, quarry or oilfield;

(e) plantation;

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

7[(g) establishment in which any work relating to the construction, development ormaintenance of buildings, roads, bridges or canals, or relating to operation connected withnavigation, irrigation, development or maintenance of buildings, roads, bridges or mission anddistribution of electricity or any other form of power is being carried on;]

8[(h) any other establishment or class of establishment which 9[appropriate Government may,having regard to the nature thereof, the need for protection of persons employed therein and otherrelevant circumstances, specify, by notification in the Official Gazette;]

10[(iia) "mine" has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of theMines Act, 1952 (35 of 1952);]

11[(iii) "plantation" has the meaning assigned to it in clause (f) of section 2 of the PlantationsLabour Act, 1951 (69 of 1951);]

(iv) "prescribed" means prescribed by rules made under this Act;

12["(v) railway administration" has the meaning assigned to it in clause (32) of section 2 of theRailways Act, 1989 (24 of 1989);]

13[(vi) "wages" means all remuneration (whether by way of salary, allowances, or otherwise)expressed in terms of money or capable of being so expressed which would, if the terms ofemployment, express or implied, were fulfilled, be payable to a person employed in respect of hisemployment or of work done in such employment, and includes--

(a) any remuneration payable under any award or settlement between the parties or order of aCourt;

(b) any remuneration to which the person employed is entitled in respect of overtime work orholidays or any leave period;

(c) any additional remuneration payable under the terms of employment (whether called abonus or by any other name);

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

(e) any sum to which the person employed is entitled under any scheme framed under anylaw 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 partof the remuneration payable under the terms of employment or which is not payable under any awardor settlement between the parties or order of a Court;

(2) the value of any house-accommodation, or of the supply of light, water, medical attendance orother amenity or of any service excluded from the computation of wages by a general or special orderof 14[appropriate Government];

(3) any contribution paid by the employer to any pension or provident fund, and the interestwhich may have accrued thereon;

(4) any travelling allowance or the value of any travelling concession;

(5) any sum paid to the employed person to defray special expenses entailed on him by the natureof his employment; or

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

1. Ins. by s. 4, ibid. (w.e.f. 9-11-2005).

2. Subs. by Act 53 of 1964, s. 3, for clause (i) (w.e.f. 1-2-1965).

3. Clauses (i), (ia) and (ib) renumbered as clauses (ia), (ib) and (ic) thereof by Act 41 of 2005, s. 4 (w.e.f. 9-11-2005).

4. Subs. by Act 38 of 1982, s. 4, for "industrial establishment" means" (w.e.f. 15-10-1982).

5. Subs. by Act 53 of 1964, s. 3, for sub-clause (a) (w.e.f. 1-2-1965).

6. Subs. by Act 68 of 1957, s. 3, for item (c) (w.e.f. 1-4-1958.)

7. Ins. by s. 3, ibid. (w.e.f. 1-4-1958.)

8. Ins. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).

9. Subs. by Act 41 of 2005, s. 3, for "the Central Government or a State Government" (w.e.f. 9-11-2005).

10. Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).

11. Subs. by s. 3, ibid., for clause (iii) (w.e.f. 1-2-1965).

12. Subs. by Act 41 of 2005, s. 4, for clause (v) (w.e.f. 9-11-2005).

13. Subs. by Act 68 of 1957, s. 3, for clause (vi) (w.e.f. 1-4-1958.)

14. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

Section 3: Responsibility for payment of wages.

1[3. Responsibility for payment of wages.--(1) Every employer shall be responsible for the paymentof all wages required to be paid under this Act to persons employed by him and in case of personsemployed,--

(a) in factories, if a person has been named as the manager of the factory under clause (f) ofsub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948);

(b) in industrial or other establishments, if there is a person responsible to the employer for thesupervision and control of the industrial or other establishments;

(c) upon railways (other than in factories), if the employer is the railway administration and therailway administration has nominated a person in this behalf for the local area concerned;(d) in the case of contractor, a person designated by such contractor who is directly under hischarge; and

(e) in any other case, a person designated by the employer as a person responsible for complyingwith the provisions of the Act,

the person so named, the person responsible to the employer, the person so nominated or the person sodesignated, as the case may be, shall be responsible for such payment.

(2) Notwithstanding anything contained in sub-section (1), it shall be the responsibility of theemployer to make payment of all wages required to be made under this Act in case the contractor or theperson designated by the employer fails to make such payment.]

1. Subs. by s. 5, ibid., for section 3 (w.e.f. 9-11-2005).

Section 4: Fixation of wage-periods.

(1) Every person responsible for the payment of wages under section3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall bepayable.

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

Section 5: Time of payment of wages.

(1) 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 onethousand persons are employed, shall be paid before expiry of the seventh day,

(b) any other railway, factory or 1[industrial or other establishment], shall be paid before theexpiry 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 ofwages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, asthe 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 hisemployment is terminated:

2[Provided that where the employment of any person in an establishment is terminated due to theclosure of the establishment for any reason other than a weekly or other recognised holiday, the wagesearned by him shall be paid before the expiry of the second day from the day on which his employment isso terminated.]

(3) 3[Appropriate Government] may, by general or special order, exempt, to such extent and subjectto such conditions as may be specified in the order, the person responsible for the payment of wages topersons employed upon any railway (otherwise than in a factory) 4[or to persons employed as daily-ratedworkers in the Public Works Department of 5[appropriate Government]] from the operation of this sectionin respect of the wages of any such persons or class of such persons:

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

(4)6[Save as otherwise provided in sub-section (2), all payments] of wages shall be made on aworking day.

1. Subs. by Act 38 of 1982, s. 6, for "industrial establishment" (w.e.f. 15-10-1982).

2. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).

3. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

4. Ins. by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).

5. Subs. by Act 41 of 2005, s. 3, for "the Central Government or a State Government" (w.e.f. 9-11-2005).

6. Subs. by Act 53 of 1964, s. 5, for "All payments" (w.e.f. 1-2-1965).

Section 6: Wages to be paid in current coin or currency notes or by cheque or crediting in bank account.

1[6. Wages to be paid in current coin or currency notes or by cheque or crediting in bankaccount.-- All wages shall be paid in current coin or currency notes or by cheque or by crediting thewages in the bank account of the employee:

Provided that the appropriate Government may, by notification in the Official Gazette, specify theindustrial or other establishment, the employer of which shall pay to every person employed in suchindustrial or other establishment, the wages only by cheque or by crediting the wages in his bankaccount.]

STATE AMENDMENT

Kerala

Amendment of section 6.--In the Payment of Wages Act, 1936 (Central Act 4 of 1936), in section 6,after the existing proviso, the following proviso shall be inserted, namely:--

"Provided further that notwithstanding anything contained in this Act, the State Government may, bynotification in the Gazette, specify the industrial or other establishment, the employers of which shall payto the person employed therein, the wages either by cheque or by crediting the wages in his bank account,without obtaining any authorisation of the employed person.u201d

[Vide Kerala Act 11 of 2016, sec. 2.]

1 Subs. by Act 1 of 2017, s. 2, for section 6 (w.e.f. 28-12-2016).

Section 7: Deductions which may be made from wages.

(1) Notwithstanding the provisions of 1[theRailways Act, 1989 (24 of 1989)], the wages of an employed person shall be paid to him withoutdeductions of any kind except those authorised by or under this Act.

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

3[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 the stoppage of increment at anefficiency bar):

(ii) the reduction to a lower post or time scale or to a lower stage in a time scale: or

(iii) suspension,

shall not be deemed to be a deduction from wages in any case where the rules framed by the employer forthe imposition of any such penalty are in conformity with the requirements, if any, which may bespecified in this behalf by 4[appropriate Government] by notification in the Official Gazette.]

(2) Deductions from the wages of an employed person shall be made only in accordance with theprovisions 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 forcustody, or for loss of money for which he is required to account, where such damage or loss isdirectly attributable to his neglect or default;

5[(d) deductions for house-accommodation supplied by the employer or by Government or anyhousing board set up under any law for the time being in force (whether the Government or the boardis the employer or not) or any other authority engaged in the business of subsidizinghouse-accommodation which may be specified in this behalf by 4[appropriate Government] bynotification in the Official Gazette;]

(e) deductions for such amenities and services supplied by the employer as the 6 4[appropriateGovernment] 7[or any officer specified by it in this behalf] may, by general or special order,authorise;

Explanation--The word "services" in 8[this clause] does not include the supply of tools and rawmaterials required for the purposes of employment;]

9[(f) deductions for recovery of advances of whatever nature (including advances for travellingallowance or conveyance allowance), and the interest due in respect thereof, or for adjustment ofover-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour inaccordance with the rules approved by 10[appropriate Government], and the interest due in respectthereof;

(fff) deductions for recovery of loans granted for house-building or other purposes approved by10[appropriate 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 suchorder;

(i) deductions for subscriptions to, and for repayment of advances from any provident fund towhich the Provident Funds Act, 1925 (19 of 1925), applies or any recognized provident fund asdefined 11[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961)], or any provident fundapproved in this behalf by 10[appropriate Government], during the continuance of such approval; 12

13[(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 amember on such conditions as may be prescribed,

for contribution to the National Defence Fund or to any Defence Savings Scheme approved by10[appropriate Government];]

(j) deductions for payments to co-operative societies approved by 10[appropriate Government] 14[orany officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian PostOffice; 15[and]

15[16[(k) deductions, made with the written authorisation of the person employed for payment ofany premium on his life insurance policy to the Life Insurance Corporation of India established underthe Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of theGovernment of India or of any 10[appropriate Government] or for being deposited in any Post OfficeSavings Bank in furtherance of any savings scheme of any such Government.]]

17[(kk) deductions made, with the written authorisation of the employed person, for the payment ofhis contribution to any fund constituted by the employer or a trade union registered under the TradeUnion Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of theirfamilies, or both, and approved by 10[appropriate Government] or any officer specified by it in thisbehalf, during the continuance of such approval;

(kkk) deductions made, with the written authorisation of the employed person, for payment of thefees payable by him for the membership of any trade union registered under the Trade Unions Act,1926 (16 of 1926);]

18[(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;

(m) deductions for recovery of losses sustained by a railway administration on account ofacceptance 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 thefailure of the employed person to invoice, to bill, to collect or to account for the appropriate chargesdue to that administration whether in respect of fares, freight, demurrage, wharfage and carnage or inrespect of sale of food in catering establishments or in respect of sale of commodities in grain shopsor otherwise;

(o) deductions for recovery of losses sustained by a railway administration on account of anyrebates or refunds incorrectly granted by the employed person where such loss is directly attributableto his neglect or default;]

19[(p) deductions, made with the written authorisation of the employed person, for contribution tothe Prime Ministers National Relief Fund or to such other Fund as the Central Government may, bynotification in the Official Gazette, specify;]

20[(q) deductions for contributions to any insurance scheme framed by the Central Government forthe benefit of its employees.]

21[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may bemade under sub-section (2) in any wage-period from the wages of any employed person shall notexceed--

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

(ii) in any other case, fifty per cent. of such wages:

Provided that where the total deductions authorised under sub-section (2) exceed seventy-five percent. or, as the case may be, fifty per cent. of the wages, the excess may be recovered in such manneras may be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from recoveringfrom the wages of the employed person or otherwise any amount payable by such person under any lawfor the time being in force other than 22[the Railways Act, 1989 (24 of 1989)].]

STATE AMENDMENTS

Kerala--

Amendment of section 7.--In section 7 of the Payment of Wages Act, 1936 (Central Act 4 of 1936),in sub-section (2), after clause (o), the following clause shall be inserted, namely.--

"(p) deductions for repayment to the State Government of the amount of financial and granted underthe Kerala Financial And (to the Discharged or Dismissed Labour) Rules, 1958"

[Vide Kerala Act 34 of 1969, sec. 2.] (w.e.f. 8-10-1969).

Karnataka

Amendment of section 7.--In section 7 of the principal Act in sub-section (2), after clause (p), thefollowing clauses shall be added namely:--

"(q) deductions to recover from a person re-employed after the termination of his former employmentany amount paid to him from a provident fund or as a gratuity on such termination:

Provided that such recovery shall not exceed 20 per cent of total earnings. Re-employment in thiscontext means employment under the same employer;

(r) deduction specially authorised by the State Government for purposes beneficial to the employedperson".

[Vide Karnataka Act 2 of 1977, s. 3].

1. Subs. by Act 41 of 2005, s. 6, for "sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)" (w.e.f. 9-11-2005).

2. Explanation renumbered as Explanation I thereof by Act 68 of 1957, s. 5 (w.e.f. 1-4-1958).

3. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).

4. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

5. Subs. by Act 68 of 1957, s. 5, for clause (d) (w.e.f. 1-4-1958).

6. The words "Governor-General in Council or" omitted by the A.O. 1937.

7. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).

8. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for "this sub-clause" (w.e.f. 20-12-1974).

9. Subs. by Act 53 of 1964, s. 6, for clause (f) (w.e.f. 1-2-1965).

10. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

11. Subs. by s. 6, ibid., for "in section 58A of the Indian Income-tax Act, 1922" (w.e.f. 9-11-2005).

12. The word "and" omitted by Ordinance 3 of 1940, s. 2.

13. Ins. by Act 42 of 1971, s. 6 (w.e.f. 4-12-1971).

14. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).

15. Added by Ordinance 3 of 1940, s. 2

16. Subs. by Act 68 of 1957, s. 5, for clause (k) (w.e.f. 1-4-1958).

17. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).

18. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).

19. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).

20. Ins. by Act 19 of 1977, s. 2 (w.e.f. 30-6-1977).

21. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).

22. Subs. by Act 41 of 2005, s. 6, for "the Indian Railways Act, 1890" (w.e.f. 9-11-2005).

Section 8: Fines.

(1) No fine shall be imposed on any employed person save in respect of such acts andomissions on his part as the employer, with the previous approval of 1[appropriate Government] or of theprescribed 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 thepremises in which the employment is carried on or in the case of person 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 ofshowing cause against the fine, or otherwise than in accordance with such procedure as may be prescribedfor the imposition of fines.

(4) The total amount of fine which may be imposed in any one wage-period on any employed personshall not exceed an amount equal to 2[three per cent.] of the wages payable to him in respect of thatwage-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 installments or after theexpiry of 3[ninety 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 ofwhich it was imposed.

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

Explanation.--When the persons employed upon or in any railway, factory or 4[industrial or otherestablishmen] are part only of a staff employed under the same management, all such realisations may becredited to a common fund maintained for the staff as a whole, provided that the fund shall be appliedonly to such purposes as are approved by the prescribed authority.

1. Subs. by s. 3, ibid., for "the State Government" (w.e.f. 9-11-2005).

2. Subs. by Act 38 of 1982, s. 8, for "half-an-anna in the rupee" (w.e.f. 15-10-1982).

3. Subs. by Act 41 of 2005, s. 7, for "sixty days" (w.e.f. 9-11-2005).

4. Subs. by Act 38 of 1982, s. 8, for "industrial establishment' (w.e.f. 15-10-1982).

Section 9: Deductions for absence from duty.

(1) Deductions may be made under clause (b) of sub-section(2) of section 7 only on account of the absence of an employed person from the place or places where, bythe terms of his employment, he is required to work, such absence being for the whole or any part of theperiod 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 personin respect of the wage-period for which the deduction is made a large proportion than the period forwhich he was absent bears to the total period, within such wage-period, during which by the terms of hisemployment, he was required to work:

Provided that, subject to any rules made in this behalf by 1[appropriate Government], if ten or moreemployed persons acting in concert absent themselves without due notice (that is to say without givingthe notice which is required under the terms of their contracts of employment) and without reasonablecause, such deduction from any such person may include such amount not exceeding his wages for eightdays as may by any such terms be due to the employer in lieu of due notice.

2[Explanation.--For the purposes of this section, an employed person shall be deemed to be absentfrom the place where he is required to work if, although present in such place, he refuses, in pursuance ofa stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work.]

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. Added by Act 22 of 1937, s. 2 (w.e.f. 14-4-1937).

Section 10: Deductions for damage or loss.

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

(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of subsection(2) of section 7 until the employed person has been given an opportunity of showing cause againstthe deduction, or otherwise than in accordance with such procedure as may be prescribed for the makingof such deductions.]

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

1. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-1965).

Section 11: Deductions for services rendered.

A deduction under clause (d) or clause (e) of sub-section (2)of section 7 shall not be made from the wages of an employed person, unless the house-accommodationamenity or service has been accepted by him, as a term of employment or otherwise, and such deductionshall not exceed an amount equivalent to the value of the house-accommodation amenity or servicesupplied and, in the case of a deduction under the said clause (e), shall be subject to such conditionsas 2 1[appropriate Government] may impose.

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. The words "the Governor-General in Council or" omitted by the A.O. 1937.

Section 12: Deductions for recovery of advances.

Deductions under clause (f) of sub-section (2) ofsection 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 firstpayment of wages in respect of a complete wage-period, but no recovery shall be made of suchadvances given for travelling-expenses;

1[(aa) recovery of an advance of money given after employment began shall be subject to suchconditions as 2[appropriate Government] may impose;]

(b) recovery of advances of wages not already earned shall be subject to any rules made by2[appropriate Government] regulating the extent to which such advances may be given and theinstallments by which they may be recovered.

1. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).

2. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

Section 13: Deductions for recovery of loans.

2[12A. Deductions for recovery of loans.--Deductions for recovery of loans granted under clause(fff) of sub-section (2) of section 7 shall be subject to any rules made by 1[appropriate Government]regulating the extent to which such loans may be granted and the rate of interest payable thereon.]

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. Ins. by Act 53 of 1964, s. 9 (w.e.f. 1-2-1965).

Section 14: Deductions for payments to co-operative societies and insurance schemes.

Deductions underclause (j)2[and clause (k) of sub-section (2) of section 7 shall be subject to such conditions as1[appropriate Government] may impose.

STATE AMENDMENTS

Karnataka

Amendment of section 13.--In section 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 clause (j) and clause (k)" the words, letters andbrackets" under clause (j), clause (k), clause (q) and clause (r)" shall be substituted.

[Vide Karnataka Act 2 of 1977, s. 4].

Karnataka

Amendment of section 13.--In sub-section (2) of section 13 of the principal Act for the words,letters and brackets u201cclause (q) and clause (r)u201d, the words, letter and brackets u201cand clause (q)u201d shall besubstituted.

[Vide Karnataka Act 2 of 1982, s. 3].

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. Ins. by Ordinance 3 of 1940, s. 3.

Section 15: Maintenance of registers and records.

1[13A. Maintenance of registers and records.--(1) Every employer shall maintain such registersand records giving such particulars of persons employed by him, the work performed by them, the wagespaid to them, the deductions made from their wages, the receipts given by them and such other particularsand in such form as may be prescribed.

(2) Every register and record required to be maintained under this section shall, for the purposes ofthis 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, s. 10 (w.e.f. 1-2-1965).

Section 16: Inspectors.

(1) An Inspector of Factories appointed under 2[sub-section (1) of section 8 of theFactories Act, 1948 (63 of 1948)], shall be an Inspector for the purposes of this Act in respect of allfactories within the local limits assigned to him.

(2)1[Appropriate Government] may appoint Inspectors for the purposes of this Act in respect of allpersons employed upon a railway (otherwise than in a factory) to whom this Act applies.

(3)1[Appropriate Government] may, by notification in the Official Gazette, appoint such otherpersons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local limits withinwhich and the class of factories and 3[industrial or other establishments] in respect of which they shallexercise their functions.

4[(4) An Inspector may,--

(a) make such examination and inquiry as he thinks fit in order to ascertain whether theprovisions of this Act or rules made thereunder are being observed;

(b) with such assistance, if any, as he thinks fit, enter, inspect and search any premises of anyrailway, factory or 5[industrial or other establishment] at any reasonable time for the purpose ofcarrying out the object of this Act;

(c) supervise the payment of wages to persons employed upon any railway or in any factoryor 6[industrial or other establishment];

(d) require by a written order the production at such place, as may be prescribed, of any registeror record maintained in pursuance of this Act and take on the spot or otherwise statements of anypersons 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 considerrelevant in respect of an offence under this Act which he has reason to believe has been committed byan 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 makeany statement tending to incriminate himself.

(4A) The provisions of the 7[Code of Criminal Procedure, 1973 (2 of 1974) shall, so far as may be,apply to any search or seizure under this sub-section as they apply to any search or seizure made underthe authority of a warrant issued under 8[section 94] of the said Code.]

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

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. Subs. by Act 68 of 1957, s. 6, for "sub-section (1) of section 10 of the Factories Act, 1934" (w.e.f. 1-4-1958).

3. Subs. by Act 38 of 1982, s. 9, for "industrial establishments" (w.e.f. 15-10-1982).

4. Subs. by Act 53 of 1964, s. 11, for sub-section (4) (w.e.f. 1-2-1965).

5. Subs. by Act 38 of 1982, s. 9, for "industrial establishment" (w.e.f. 15-10-19825).

6. Subs. by Act 38 of 1982, s. 9, for "industrial establishment" (w.e.f. 15-10-1982).

7. Subs. by s. 9, ibid., for "Code of Criminal Procedure, 1898" (w.e.f. 15-10-1982).

8. Subs. by s. 9, ibid., for "section 98" (w.e.f. 15-10-1982).

Section 17: Facilities to be afforded to Inspectors.

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

1. Ins. by Act 53 of 1964, s. 12 (w.e.f. 1-2-1965).

Section 18: Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

1(1) The appropriate Government may, by notification in the OfficialGazette, appoint--

(a) any Commissioner for Workmen's Compensation; or

(b) any officer of the Central Government exercising functions as,

(i) Regional Labour Commissioner; or

(ii) Assistant Labour Commissioner with at least two years experience; or

(c) any officer of the State Government not below the rank of Assistant Labour Commissionerwith at least two years experience; or

(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under the IndustrialDisputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation andsettlement of industrial disputes in force in the State; or

(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate,

as the authority to hear and decide for any specified area all claims arising out of deductions from thewages, or delay in payment of the wages, of persons employed or paid in that area, including all mattersincidental to such claims:

Provided that where the appropriate Government considers it necessary so to do, it may appoint morethan one authority for any specified area and may, by general or special order, provide for the distributionor 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 anemployed person, or any payment of wages has been delayed, such person himself, or any legalpractitioner or any official of a registered trade union authorised in writing to act on his behalf, or anyInspector under this Act, or any other person acting with the permission of the authority appointed undersub-section (1), may apply to such authority for a direction under sub-section (3):

Provided that every such application shall be presented within 2[twelve months] from the date onwhich the deduction from the wages was made or from the date on which the payment of the wages wasdue to be made, as the case may be:

Provided further that any application may be admitted after the said period of 2[twelve months] whenthe applicant satisfies the authority that he had sufficient cause for not making the application within suchperiod.

3[(3) When any application under sub-section (2) is entertained, the authority shall hear the applicantand the employer or other person responsible for the payment of wages under section 3, or give them anopportunity of being heard, and, after such further enquiry, if any, as may be necessary, may, withoutprejudice to any other penalty to which such employer or other person is liable under this Act, direct therefund to the employed person of the amount deducted, or the payment of the delayed wages, togetherwith the payment of such compensation as the authority may think fit, not exceeding ten times the amountdeducted in the former case and not exceeding three thousand rupees but not less than one thousand fivehundred rupees in the latter, and even if the amount deducted or delayed wages are paid before thedisposal of the application, direct the payment of such compensation, as the authority may think fit, notexceeding two thousand rupees:

Provided that a claim under this Act shall be disposed of as far as practicable within a period of threemonths from the date of registration of the claim by the authority:

Provided further that the period of three months may be extended if both parties to the dispute agreefor any bona fide reason to be recorded by the authority that the said period of three months may beextended to such period as may be necessary to dispose of the application in a just manner:

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

(a) a bona fide error or bona fide dispute as to the amount payable to the employed person; or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, the personresponsible for the payment of the wages was unable, in spite of exercising reasonable diligence; or

(c) the failure of the employed person to apply for or accept payment.]

4[(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 apenalty 5[not exceeding three hundred seventy-five rupees] be paid to the employer or other personresponsible 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), theapplicant ought not to have been compelled to seek redress under this section, the authority maydirect that a penalty 5[not exceeding three hundred seventy-five rupees] be paid to 6[appropriateGovernment] by the employer or other person responsible for the payment of wages.

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

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaningof sections 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 asMagistrate, and

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

STATE AMENDMENT

Karnataka

Amendment of section 15.--In section 15 of the principal Act.--

(1) in sub-section (2), after the word, brackets and figure sub-section (3), the following shall beinserted, namely:--

"and in case of death of the employed person, it shall be lawful for his legal representatives to makeand application for such direction";

(2) 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 arrearof land revenue and the authority shall for that purpose be deemed to be a public officer within themeaning of section 5 of the Revenue Recovery Act, 1890.

[Vide Karnataka Act 2 of 1977, s. 5].

Insertion of new section 15A.--After section 15 of the Principal Act, the following section shall beinserted, namely:--

"15A. Liability for payment of court fees.--(1) In any proceedings under section 15, the applicantshall not be liable to pay any court fees (other than fees payable for the service of process) in respect ofsuch proceedings:

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

(2) Where the applicant succeeds in such proceedings, the authority hearing the application shallcalculate 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 section 3 to pay suchamount to the State Government. Such amount shall, without prejudice to any other mode of recovery berecoverable as an arrear of land revenue.

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

[Vide Karnataka Act 2 of 1977, s. 6].

1. Subs. by Act 41 of 2005, s. 8, for sub-section (1) (w.e.f. 9-11-2005).

2. Subs. by Act 53 of 1964, s. 13, for "six months" (w.e.f. 1-2-1965).

3. Subs. by Act 41 of 2005, s. 8, for sub-section (3) (w.e.f. 9-11-2005).

4. Subs. by Act 53 of 1964, s. 13, for sub-section (4) (w.e.f. 1-2-1965).

5. Subs. by Act 41 of 2005, s. 8, for "not exceeding fifty rupees" (w.e.f. 9-11-2005).

6. Subs. by s. 3, ibid., for "the State Government" (w.e.f. 9-11-2005).

Section 19: Single application in respect of claims from unpaid group.

(1) Employed persons are said tobelong to the same unpaid group if they are borne on the same establishment and if 1[deductions havebeen made from their wages in contravention of this Act for the same cause and during the same wageperiod or periods or if] their wages for the same wage-period or periods have remained unpaid after theday fixed by section 5.

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

(3) The authority may deal with any number of separate pending applications, presented under section15 in respect of persons belonging to the same unpaid group, as a single application presented undersub-section (2) of this section, and the provisions of that sub-section shall apply accordingly.

1. Ins. by Act 53 of 1964, s. 14 (w.e.f. 1-2-1965).

2. Subs. by s. 14, ibid., for "the maximum compensation that may be awarded under sub-section (3) of section 15 shall be tenrupees per head" (w.e.f. 1-2-1965).

Section 20: Appeal.

(1)1[An appeal against an order dismissing either wholly or in part an application madeunder sub-section (2) of section 15, or against a direction made under sub-section (3) or sub-section (4) ofthat 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 section 3, if thetotal sum directed to be paid by way of wages and compensation exceeds three hundred rupees 4[orsuch direction has the effect of imposing on the employer or the other person a financial liabilityexceeding one thousand rupees], or

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

(c) by any person directed to pay a penalty under 6[sub-section (4)] of section 15.

4[(1A) No appeal under clause (a) of sub-section (1)] shall lie unless the memorandum of appeal isaccompanied by a certificate by the authority to the effect that the appellant has deposited the amountpayable under the direction appealed against.]

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

8[(3) Where an employer prefers an appeal under this section, the authority against whose decision theappeal has been preferred may, and if so directed by the court referred to in sub-section (1) shall, pendingthe 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 law for thedecision of the High Court and, if it so does, shall decide the question in conformity with such decision.

STATE AMENDMENT

Karnataka

Amendment of section 17.--In section 17 of the principal Act,--

(1) in sub-section (2), after the words, brackets and figure u201csub-section (4) of that sectionu201d the words,brackets, figures and letter, u201cor any order made under sub-section (1) of section 17Au201d shall be inserted.

(2) after sub-section (4), the following sub-section shall be added, namely:--

u201c(5) the provisions of section 5 of the Limitation Act, 1963 shall be applicable to appeals under thissection."

[VideKarnataka Act 2 of 1977, s. 7].

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

2. Subs. by s. 7, ibid., for "the direction" (w.e.f. 1-4-1958).

3. The words "or in Rangoon" omitted by the A.O. 1937.

4. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).

5. Subs. by s.15, ibid., for clause (b) (w.e.f. 1-2-1965).

6. Subs. by Act 20 of 1937, s. 2 and the First Schedule, for "sub-section (5) (w.e.f. 14-4-1937).

7. Subs. by Act 68 of 1957, s. 7, for sub-section (2) (w.e.f. 1-4-1958).

8. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).

Section 21: Conditional attachment of property of employer or other person responsible for payment of wages.

1[17A. Conditional attachment of property of employer or other person responsible for paymentof wages.--(1) Where at any time after an application has been made under sub-section (2) of section 15the authority, or where at any time after an appeal has been filed under section 17 by an employed personor 2any legal practitioner or any official of a registered trade union authorised in writing to act on hisbehalf or any Inspector under this Act or any other person permitted by the authority to make anapplication under sub-section (2) of section 15] the Court referred to in that section, is satisfied that theemployer or other person responsible for the payment of wages under section 3 is likely to evade paymentof any amount that may be directed to be paid under section 15 or section 17, the authority or the court, asthe case may be, except in cases where the authority or court is of opinion that the ends of justice wouldbe defeated by the delay, after giving the employer or other person an opportunity of being heard, maydirect the attachment of so much of the property of the employer or other person responsible for thepayment of wages as is, in the opinion of the authority or court, sufficient to satisfy the amount whichmay be payable under the direction.

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

1. Ins. by Act 68 of 1957, s. 8 (w.e.f. 1-4-1958).

2. Subs. by Act 53 of 1964, s. 16, for "any official of a registered trade union authorised in writing to act on his behalf"(w.e.f. 1-2-1965).

Section 22: Powers of authorities appointed under section 15.

Every authority appointed undersub-section(1) of section 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 andcompelling the production of documents, and every such authority shall be deemed to be a Civil Court ofall the purposes of section 195 and of 1[Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of1974)].

1. Subs. by Act 38 of 1982, s. 10, for "Chapter XXVI of the Code of Criminal Procedure, 1973" (w.e.f. 15-10-1982).

Section 23: [Omitted].

[Power to recover from employer in certain cases].Omitted by the Payment of Wages(Amendment) Act, 1964 (53 of 1964), s. 17 (w.e.f. 1-2-1965).

Section 24: Penalty for offences under the Act.

(1) Whoever being responsible for the payment of wagesto an employed person contravenes any of the provisions of any of the following section,namely, 1[section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof,section 9, section 10 except sub-section (2) thereof, and sections11 to 13], both inclusive, shall bepunishable 2[with fine which shall not be less than one thousand five hundred rupees but which mayextend to seven thousand five hundred rupees].

(2) Whoever contravenes the provisions of section 4, 3[sub-section (4) of section 5, section 6,sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable 4[with finewhich may extend to three thousand seven hundred fifty rupees].

5[(2A) Whoever being required to nominate or designate a person under section 3 fails to do so, suchperson shall be punishable with fine which may extend to three thousand rupees.]

6[(3) Whoever being required under this Act to maintain any records or registers or to furnish anyinformation 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

(c) wilfully furnishes or causes to be furnished any information or return which he knows to befalse; or

(d) refuses to answer or wilfully gives a false answer to any question necessary for obtaining anyinformation required to be furnished under this Act,

shall for each such offence, be punishable 7[with fine which shall not be less than one thousand fivehundred rupees but which may extend to seven thousand five hundred 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 anyentry, inspection, examination, supervision, or inquiry authorised by or under this Act in relation toany railway, factory of 8[industrial or other establishment]; or

(c) wilfully refuses to produce on the demand of an Inspector any register or other document keptin pursuance of this Act; or

(d) prevents or attempts to prevent or does anything which he has any reason to believe is likelyto prevent any person from appearing before or being examined by an Inspector acting in pursuanceof his duties under this Act,

shall be punishable 9[with fine which shall not be less than one thousand five hundred rupees but whichmay extend to seven thousand five hundred rupees].

(5) If any person who has been convicted of any offence punishable under this Act is again guilty ofan offence involving contravention of the same provision, he shall be punishable on a subsequentconviction with imprisonment for a term 10[with fine which shall not be less than three thousand sevenhundred fifty rupees but which may extend to twenty-two thousand five hundred]:

Provided that for the purpose of sub-section, no cognizance shall be taken of any conviction mademore than two years before the date on which the commission of the offence which is being punishedcame 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 fixedby the authority, in this behalf, he shall, without prejudice to any other action that may be taken againsthim, be punishable with an additional fine which may extend to 11[seven hundred fifty rupees] for each dayfor which such failure or neglect continues.]

1. Subs. by Act 53 of 1964, s. 18, for "section 5 and sections 7 to 13" (w.e.f. 1-2-1965).

2. Subs. by Act 41 of 2005, s. 9, for "with fine which shall not be less than two hundred rupees but which may extend to onethousand rupees" (w.e.f. 9-11-2005).

3. Subs. by Act 53 of 1964, s.18, for "section 6" (w.e.f. 1-2-1965).

4. Subs. by Act 41 of 2005, s. 9, for "with fine which may extend to five hundred rupees" (w.e.f. 9-11-2005).

5. Ins. by Act 41 of 2005, s. 9 (w.e.f. 9-11-2005).

6. Ins. by Act 53 of 1964, s.18 (w.e.f. 1-2-1965)

7. Subs. by Act 41 of 2005, s. 9, for "with fine which shall not be less than two hundred rupees but which may extend to onethousand rupees" (w.e.f. 9-11-2005).

8. Subs. by Act 38 of 1982, s. 11, for "industrial establishment" (w.e.f. 15-10-1982).

9. Subs. by Act 41 of 2005, s. 9, for "with fine which shall not be less than two hundred rupees but which may extend to onethousand rupees" (w.e.f. 9-11-2005).

10. Subs. by s. 9, ibid., for "with fine which shall not be less than five hundred rupees but which may extend to three thousandrupees" (w.e.f. 9-11-2005).

11. Subs. by s. 9, ibid., for "one hundred rupees" (w.e.f. 9-11-2005).

Section 25: Procedure in trial of offences.

(1) No Court shall take cognizance of a complaint against anyperson for an offence under sub-section (1) of section 20 unless an application in respect of the factsconstituting the offence has been presented under section 15 has been granted wholly or in part and theauthority empowered under the latter section or the appellate Court granting such application hassanctioned the making of the complaint.

(2) Before sanctioning the making of a complaint against any person for an offence undersub-section (1) of section 20, the authority empowered under section 15 or the appellate Court, as the casemay be, shall give such person an opportunity of showing cause against the granting of such sanction, andthe sanction shall not be granted if such person satisfies the authority or Court that his default was dueto--

(a) a bona fide error or bona fide 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 theperson 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.

(3) No Court shall take cognizance of a contravention of section 4 or of section 6 or of acontravention of any rules made under section 26 except on a complaint made by or with the sanction ofan Inspector under this Act.

1[(3A) No Court shall take cognizance of any offence punishable under sub-section (3) or sub-section(4) of section 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 section 20 the court shall take intoconsideration the amount of any compensation already awarded against the accused in any proceedingstaken under section 15.

STATE AMENDMENT

Karnataka

Amendment of section 21.--In section 21 of the principal Act,--

(1) in sub-section (1), for the words u201cand the authority empowered under the latter section or theAppellate Court granting such applicationu201d, the words u201cby the authority or the Appellate Court or theState Government or any Officer authorised by it in this behalfu201d shall be substituted;

(2) in sub-section (2) for the words and figures u201cthe authority empowered under section 15 or theAppellate Courtu201d, the words u201cthe State Government or the officer authorised by it in this behalfu201d shall besubstituted.

[Vide Karnataka Act 2 of 1977, s. 8].

1. Ins. by Act 53 of 1964, s.19 (w.e.f. 1-2-1965).

Section 26: Bar of Suits.

No Court shall entertain any suit for the recovery of wages or of any deductionfrom wages in so far as the sum so claimed--

(a) forms the subject of an application under section 15 which has been presented by the plaintiffand which is pending before the authority appointed under that section or of an appeal under section17; or

(b) has formed the subject of a direction under section 15 in favour of the plaintiff; or

(c) has been adjudged, in any proceeding under section 15, not to be owed to the plaintiff; or

(d) could have been recovered by an application under section 15.

Section 27: Protection of action taken in good faith.

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

1. Ins. by s. 20, ibid. (w.e.f. 1-2-1965).

Section 28: Contracting out.

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

Section 29: Delegation of powers.

1[24. Delegation of powers.--The appropriate Government may, by notification in the OfficialGazette, direct that any power exercisable by it under this Act shall, in relation to such matters andsubject to such conditions, if any, as may be specified in the direction, be also exercisable--

(a) where the appropriate Government is the Central Government, by such officer or authoritysubordinate to the Central Government or by the State Government or by such officer or authoritysubordinate to the State Government, as may be specified in the notification;

(b) where the appropriate Government is a State Government, by such officer or authoritysubordinate to the State Government as may be specified in the notification.]

1. Subs. by Act 41 of 2005, s. 10, for section 24 (w.e.f. 9-11-2005).

Section 30: Display by notice of abstracts of the Act.

The person responsible for the payment of wages topersons 1[employed in a factory or an industrial or other establishment] shall cause to be 2[displayed insuch factory or industrial or other establishment] a notice containing such abstracts of this Act and of therules made thereunder in English and in the language of the majority of the persons employed 3[in thefactory or industrial or other establishment] as may be prescribed.

1. Subs. by Act 38 of 1982, s. 12, for "employed in a factory" (w.e.f. 15-10-1982).

2. Subs. by s. 12, ibid., for "displayed in such factory" (w.e.f. 15-10-1982).

3. Subs. by s. 12, ibid., for "in the factory" (w.e.f. 15-10-1982).

Section 31: Payment of undisbursed wages in cases of death of employed person.

1[25A. Payment of undisbursed wages in cases of death of employed person.--(1) Subject to theother provisions of the Act, all amounts payable to an employed person as wages shall, if such amountscould not or cannot be paid on account of his death before payment or on account of his whereabouts notbeing known,--

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

(b) where no such nomination has been made or where for any reasons such amounts cannot bepaid to the person so nominated, be deposited with the prescribed authority who shall deal with theamounts 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 employedperson as wages--

(a) are paid by the employer to the person nominated by the employed person, or

(b) are deposited by the employer with the prescribed authority,

the employer shall be discharged of his liability to pay those wages.]

1. Ins. by s. 13, ibid. (w.e.f. 15-10-1982).

Section 32: Rule-making power.

(1)1[Appropriate Government] may make rules to regulate the procedureto be followed by the authorities and Courts referred to in sections 15 and 17.

(2) 1[Appropriate Government] may, 2 by notification in the Official Gazette, make rules for thepurpose of carrying into effect the provisions of this Act.

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

(a) require the maintenance of such records, registers, returns and notices as are necessary for theenforcement of the Act 3[, prescribe the form thereof and the particulars to be entered in such registersor records;]

(b) require the display in a conspicuous place or premises where employment is carried on ofnotices 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 byemployers 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 section 8 acts andomissions in respect of which fines may be imposed;.

(f) prescribe the procedure for the imposition of fines under section 8 and for the making of thedeductions referred to in section 10;

(g) prescribe the conditions subject to which deduction may be made under the proviso to subsection(2) of section 9;

(h) prescribe the authority competent to approve the purposes on which the proceeds of fines shallbe expended;

(i) prescribe the extent to which advances may be made and the installments by which they maybe recovered with reference to clause (b) of section 12;

4[(ia) prescribe the extent to which loans may be granted and the rate of interest payable thereonwith reference to section 12A;

(ib) 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; 5

(l) prescribe the abstracts to be contained in the notices required by section 25; 6

7[(la) prescribe the form and manner in which nominations may be made for the purposes of subsection(1) of section 25A, the cancellation or variation of any such nomination, or the making of anyfresh nomination in the event of the nominee predeceasing the person making nomination, and othermatters connected with such nominations;

(lb) specify the authority with whom amounts required to be deposited under clause (b) of subsection(1) of section 25A shall be deposited, and the manner in which such authority shall deal withthe amounts deposited with it under that clause;]

4(m) provide for any other matter which is to be or may be prescribed.]

(4) In making any rule under this section 8[appropriate Government] may provide that a contraventionof the rule shall be punishable with fine 9[which shall not be less than seven hundred fifty rupees butwhich may extend to one thousand five hundred rupees].

(5) All rules made under this section shall be subject to the condition of previous publication, and thedate to be specified under clause (3) of section 23 of the General Clauses Act, 1897 (10 of 1897), shallnot be less than three months from the date on which the draft of the proposed rules was published.

4[(6) Every rule made by the Central Government under this section shall be laid, as soon as may beafter it is made before each House of Parliament while it is in session for a total period of thirty dayswhich may be comprised in one session or in 10[two or more successive sessions,] and if, before the expiryof the session 11[immediately following the session or the successive sessions aforesaid] both Houses agreein making any modification in the rule, or both Houses agree that the rule should not be made, the ruleshall 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 previouslydone under that rule.]

12[(7) All rules made under this section by the State Government shall, as soon as possible after theyare made, be laid before the State Legislature.]

STATE AMENDMENT

Karnataka

Amendment of section 26.--In section 26 of the principal Act in sub-section (3), in clause (k) for thewords u201cCourt feesu201d, the words u201cad valorem or fixed court feesu201d shall be substituted.

[Vide Karnataka Act 2 of 1977, s. 9].

1. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

2. The words "subject to the control of the Governor-General in Council," omitted by the A.O. 1937.

3. Subs. by Act 53 of 1964, s. 22, for "and prescribed the form thereof" (w.e.f. 1-2-1965).

4. Ins. by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).

5.The word "and" omitted by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).

6.The word "and" omitted by Act 38 of 1982, s. 14 (w.e.f. 15-10-1982).

7. Ins. by s. 14, ibid. (w.e.f. 15-10-1982).

8. Subs. by Act 41 of 2005, s. 3, for "the State Government" (w.e.f. 9-11-2005).

9. Subs. by s. 11, ibid., for which may extend to two hundred rupees (w.e.f. 9-11-2005).

10. Subs. by Act 38 of 1982, s. 14, for "two successive sessions" (w.e.f. 15-10-1982).

11. Subs. by s. 14, ibid., for "in which it is so laid or the session immediately following" (w.e.f. 15-10-1982).

12. Ins. by Act 41 of 2005, s. 11 (w.e.f. 9-11-2005).