Payment of Wage Act 1936: Objectives

Objectives of Payment of Wage Act

  1. It was passed to regulate the payment of wages to certain groups of employees at regular intervals and without any unauthorized deductions.
  2. It is essentially meant for the benefit of industrial employees not getting vary high wages and the provisions of the Act were enacted to safeguard their interest.
  3. It also provides against irregularities in payment of wages and unauthorized deductions by the employers.
  4. Further, it ensures payment of wages in a particular form and at regular intervals without unauthorised deductions.

Short Title, Extent, Commencement of Payment of Wage Act

  1. This Act may be called the Payment of Wages Act, 1936.
  2. It extends to the Whole of India.
  3. It shall come into force on such date as the Central Government may, by notification in the Official Gazatee, appoint.
  4. This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed six thousand five hundred rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey organization, the central Government may, after every five years, by notification in the Official Gazatte, specify.

Definitions Under the Payment of Wage Act

  1. “Employed Person” [sec 2 (ia)]: Includes the legal representative of a deceased employed person;
  2. “Employer”[sec 2 (ib)] includes the legal representative of a deceased employer;
  3. Appropriate Government [Section 2(i)]: It means in relation to railways, air transport services, mines and oilfields, the Central Government and, in relation to all other cases, the State Government.
  4. “Industrial or other establishment”[sec 2 (i1)] means any –
    (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;
    (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;
    (g) establishment in which any work relating to the construction development or maintenance of buildings roads bridges or canals or relating to operations connected with navigation irrigation or to the supply of water or relating to the generation transmission and distribution of electricity or any other form of power is being carried on;
    (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.
  5. “wages” [sec 2 (vi)] 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 of employment express or implied were fulfilled by 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;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the person employed is payable 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 payment is to be made.