Payment of Wages Act (DOC)

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					   Introduction:-

      India being a developing nation, a major part of its
population consists of service-going people and among them
again a major part consists of workers. These workers are those
who work in factories, industries both big ones and the
S.S.Industries. These workers many times are exploited by their
employers in different ways. To avoid this government has
taken many measures. One among those is the passing of the
Payment of Wages Act, 1936.

   Payment of Wages Act, 1936:

       The Payment of Wages Act was passed in the year 1936 for a certain class of
persons employed in the industries. It is meant only for certain classes of employees.

       This act was passed because of the reasons of injustice done to the employers
in the way of
                               1) Wrongful Deductions.
                               2) Untimely Wages.
                               3) Unreasonable Deductions.
                               4) Payment of Wages in Kind.
or any other problem associated with the Payment of Wages.

                This act also provides for the remedies available to employees in such
cases. This act states in what form the employee should be remunerated and also that
he should be paid at regularly intervals.

      An example of a Case Study can be quoted:

       “In a case related to this provision i.e. in the Arvind Mills Ltd. V/s.
K.R.Gadgil case the Bombay High Court had passed a judgement that the general
purpose of this act is to provide that employed persons shall be paid their wages in a
particular form and at a regular intervals without any unauthorized deductions.”

       Also this Act states that any deductions from the wages of a workman shall be
deemed\considered as illegal if it is not governed by this act.

        A Case Study related to this provision can be quoted:

         In a case i.e. Balmer Lawrie & Co. Ltd the court had passed a judgement that
 “any deduction from the wages of a workman under a settlement between
 representative Union and employer can, however permit a deduction as it is the
 outcome of an under-standing between the parties even though such deductions may
 not be authorized or legally permissible under this Act.”

    Applicability:

         According to Sec. 1 of the Payment of Wages Act, 1936 its applicability is:

1) It is applicable to the whole of India.

2) It is applied on any person employed in a factory OR employed in any railway by a
    railway administration, including the persons employed directly or through a sub-
    contractor by a person having a contract with the railway administration.

3) The state Government may apply the provisions of this act to the persons employed
    in any Industrial or other establishment by giving a 3 months notice.

4) In case of Industrial establishment owned by central government, with objectives
    not confined to one state, such notification can be issued in consultation with the
    Central Government.

5) In various shops, this Act has been extended to shops and establishments also.

    Non-Applicability:-

         According to Sec. 1(6) of the Payment of Wages Act, 1936 as this act is meant
 for the benefit of Industrial employees not getting high wages, therefore this Act does
 not apply to persons whose wages exceed Rs. 1600 per month.
         This act does not make any distinction between employees with reference to
 nature of work carried on by them.

    Wages:-
         According to Sec. 2(vi) wages can be defined as,
         “Wages” means all remuneration (whether by way of salary, allowance or
 otherwise) expressed in terms of money or capable of being do 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.

    Rules Relating to Payment of Wages:-

1) Responsibility for Payment of Wages (Sec. 3).
2) Fixation of wages periods and time of payment of wages (Sec. 4 & 5).
3) Mode of payment of wages (Sec. 6).
4) Deductions which may be made from wages (Sec. 7).
5) Deductions for absence from duty (Sec. 9).
6) Deductions for damage or loss (Sec. 10).
7) Deductions for services rendered {Sec. 11 & 7(2)}.
8) Deductions for recovery of advances (Sec. 12).
9) Deductions for recovery of loans (Sec. 12-A).
10) Deductions for payments to co-operative society and insurance schemes {Sec. 13 &
11) Limit on deduction {Sec. 7(3)}.

 Registers should be maintained regarding:

a) Work performed by employee.
b) Wages paid to them.
c) Deductions from their wages.
d) Receipts given by them. (According to Sec. 13-A).

         Their must be in the form prescribed. They shall be preserved for 3 years from
   the last date of entry.

  Finding:-

              The industry we visited was the Chandrika firm.
              It was an S-S-1 producing looms it had about 500 workers working among
 whom about 70% were unskilled and illiterate and only about 30% were skilled.
              There workers were paid wages in the range of 3000-6000.
              They were paid on the monthly basis and the payments are strictly in cash.
              These workers are given or paid the expenses for housing i.e. rent they get
 loans during Emergencies.
              These loans are to be returned back within a maximum period of one year.
              They are provided with all the basic amenities required like fresh dinking
 water etc.
              The workers are provided with a very friendly atmosphere to working. As
 the worker
              Completes 90days he is subject to ok bonus and on completion of 1 year
 they are also given extra service.
 Following is the process used to produce there product.

                       YARN DYEING PROCESS

                                 RAW MATERIAL




                              FINISHED PRODUCTS

       To get better knowledge regarding the follow-up of the wages and it visit was
       Our main purpose was to practically see and verify for ourselves whether the
act was being followed, as it should be, whether its provisions are being applied in
real life. For this purpose it was required to visit a small-scale unit where there were
more workers. We therefore visited a small scale unit which could help us understand
the workers and their way of working better.

 The report follow:-

(1) Terms of Reference:-
          The visit was conducted for the purpose of preparing a report
Regarding the workers and this wage conditions in any factory in practical. The
project was assigned by Pro CHANDER ROHRA and the teams were also selected /
prepared by respecting sir himself. The team consisted of 10 members from roll
no.71-80. They were supposed to work together in co-ordination and complete the
project successfully.

(2) Procedure:-
          The teams were chosed by sir himself
          Later on we all sat together to decide upon how the project was to be
completed successfully and in time. It was decided that we will first visit the unit and
see for
          Ourselves how it functions and would ourselves any doubt in our minds.

          After the visit when we had all the relevant information’s with us we again set
together for the purpose of forming text in the report.

          The matter to be present in the report was prepared after through
          Discussions and every member made his contribution.
             Even the responsible of creating a soft copy of the text and later creating.
             Hard copies were taken over by the students who were best at it.

          Thus the entire project was completed by a team effort and by proper

          They use Synthetic Fiber and by a process known as yarn dyeing they produce
          Later on using a machine called Warping Machine and further processing
“Loom” is prepared. Later on it is dyed as per requirement.

     There are two procedures of dying:
  i. Top dyeing.
 ii. Preach dyeing.
  i. In top dyeing looms different colours can be produced.
 ii. In preach dyeing looms of only one colour can be produced.
     In this firm, both these procedures can be done.

     The raw materials required for these processes come from the Reliance

     All the departments are managed by well-qualified and skilled members. The
accounts department is handled by Chartered Accountant.

     They also have a separate “Excile Department” which handle all work related
to payment of taxes etc.

     Every work is done systematically and in time.
     Utmost care is taken to complete all the assignments in time.

 Conclusion:-

       The industry tries its level best to provide all sorts of facilities which are
 recommended by the Wages Act, 1936.

       Here the workers are not insured by the employers.
       All other needs of the workers are taken care of by the employers.

  Place: - Ulhasnagar.                                                      Sd/-
  Date: - January 24, 2005.                                        Team Members.


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