Time & Mode of Payment of Wages - Payment of Wages Act(1936), Industrial Laws | Industrial Laws - B Com PDF Download

Specifies that the wages of every person employed upon or in:

(a) any railway, factory or industrial or other establishment upon or in which less than one thousand persons areemployed, shall be paid before the expiry of the seventh day,

(b) any other railway, factory or industrial or other establishment, shall be paid before the expiry of the tenth day,after the last day of the wage-period in respect of which the wages are payable.

Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paidbefore the expiry of the seventh day from the day of such completion.Section 5(2) where the employment of anyperson is terminated by or on behalf of the employer, the wages, earned by him shall be paid before the expiry of thesecond working day from the day on which his employment is terminated. Where the employment of any person in anestablishment is terminated due to the closure of the establishment for any reason other than a weekly or otherrecognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on whichhis employment is so terminated.Section 5(3) The State Government may, by general or special order, exempt, to suchextent and subject to such conditions as may be specified in the order, the person responsible for the payment ofwages to persons employed upon any railway (otherwise than in a factory ) or to persons employed as daily-ratedworkers in the Public Works Department of the Central Government or the State Government from the operation of thissection in respect of wages of any such persons or class of such persons .But in the case of persons employed as daily-ratedworkers as above stated, no such order shall be made except in consultation with the Central Government.

Section 5(4) All payments of wages shall be made on a working day.

Mode of Payment

All wages shall be paid in current coin or currency notes or in both.

The employer may, after obtaining the written authorisation of the employed person, pay him the wages either bycheque or by crediting the wages in his bank account.