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The Payment of Wages Act, 1936

The Payment of Wages Act, 1936

Labour193632 sections

The Payment of Wages Act, 1936 protects workers by regulating the timely and complete payment of wages. It applies in the first instance to individuals employed in factories, railways, and specific industrial establishments whose monthly earnings average below a statutory limit. The law regulates when wages must be paid—specifically within seven or ten days after the wage period—and mandates payments in current coin, currency notes, or bank deposits. Crucially, it prohibits unauthorized deductions or excessive fines, ensuring employers cannot unfairly withhold earnings. This safeguards vulnerable employees from exploitation, making any contract relinquishing these statutory rights completely null and void.

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  1. 1. Short title, extent, commencement and application.
  2. 2. Definitions.
  3. 3. Responsibility for payment of wages.
  4. 4. Fixation of wage-periods.
  5. 5. Time of payment of wages.
  6. 6. Wages to be paid in current coin or currency notes or by cheque or crediting in bank account.
  7. 7. Deductions which may be made from wages.
  8. 8. Fines.
  9. 9. Deductions for absence from duty.
  10. 10. Deductions for damage or loss.
  11. 11. Deductions for services rendered.
  12. 12. Deductions for recovery of advances.
  13. 12A. Deductions for recovery of loans.
  14. 13. Deductions for payments to co-operative societies and insurance schemes.
  15. 13A. Maintenance of registers and records.
  16. 14. Inspectors.
  17. 14A. Facilities to be afforded to Inspectors.
  18. 15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.
  19. 16. Single application in respect of claims from unpaid group.
  20. 17. Appeal.
  21. 17A. Conditional attachment of property of employer or other person responsible for payment of wages.
  22. 18. Powers of authorities appointed under section 15.
  23. 19. [Omitted].
  24. 20. Penalty for offences under the Act.
  25. 21. Procedure in trial of offences.
  26. 22. Bar of Suits.
  27. 22A. Protection of action taken in good faith.
  28. 23. Contracting out.
  29. 24. Delegation of powers.
  30. 25. Display by notice of abstracts of the Act.
  31. 25A. Payment of undisbursed wages in cases of death of employed person.
  32. 26. Rule-making power.

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