Definitions, Responsibility & Fixation of Wages - Payment of Wages Act(1936), Industrial Laws | Industrial Laws - B Com PDF Download

Definitions

Section 2 : Employed person

Employed person includes the legal representative of a deceased employed person.- Section 2(i)

Employer

Employer includes the legal representative of a deceased employer. The liability of the employer’s legalrepresentative for the payment of wages due to the employed persons is limited to the extent of the value of theproperty inherited by him. Section 2(ia)

Factory

Factory means a factory as defined in section 2(m) of the Factories Act, 1948 and includes any place to which theprovisions of that Act have been applied.

Industrial and other establishments

Industrial or other establishment means any—

(a) tramway service , or motor transport service engaged in carrying passengers or goods or both by road for hireor reward;

(b) air transport service other than such service belonging to, or exclusively employed in the military, naval or airforces of the Union or the Civil Aviation Department of the Government of India;

(c) dock, wharf or jetty;

(d) inland vessel, mechanically propelled; (e) mine, quarry or oil-field;

(f) plantation;

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

(h) 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 ofwater or relating to the generation, transmission and distribution of electricity or any other form of power is being carriedon.

(i) any other establishment or class of establishments which the Central Government or a StateGovernment may, having regard to the nature thereof, the need for protection of persons employed thereinand other relevant circumstances, specify, by notification in the Official Gazette.

Wages

Wages means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money orcapable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to aperson 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 leaveperiod;

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by anyother 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, butdoes not provide for the time within which the payment is to be made;

(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being inforce,

Wages does not include—

(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of theremuneration payable under the terms of employment or which is not payable under any award or settlementbetween the parties or order of a court;

(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenityor of any service excluded from the computation of wages by a general or special order of the StateGovernment;

(3) any contribution paid by the employer to any pension or provident fund, and the interest which may haveaccrued 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 nature of hisemployment; or

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

Responsibility for Payment of Wages

Every employer shall be responsible for the payment to persons employed by him of all wages required to be paidunder this Act.

The following persons shall also be responsible for the payment of wages:

(a) in factories, if a person has been named as the manager of the factory of the

Factories Act, 1948.

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

(c) upon railways (otherwise 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.

Fixation of Wage Period

It is required under that:

(1) Every person responsible for the payment of wages under section 3 shall fix periods in respect of which such wages shall be payable.

(2) No wage-period shall exceed one month. Payment of wages can be made on daily, weekly, fortnightly or monthlybasis.