Payment of Wages and Miscellaneous Provisions Bill, 2008

A
Bill

To consolidate all legal provisions relating to payment of wages to

employees by their employers, fixation of minimum wages in the Scheduled
employments, equal wages for male and female employees, payment of bonus
and for matters connected therewith.

Be it enacted by Parliament in the sixtieth year of the Republic of India as

follows:-

1. Short title, extent and commencement

(1) This Act may be called the Payment of Wages and Miscellaneous
Provisions Act, 2008
(2) It extends to the whole of India.
(3) It shall come into force from such date as the Central Government
may, by notification in the Official Gazette, appoint.

2. Definitions-

(a) “Appropriate government” means-

(i) in relation to any establishment carried on by or under the
authority of the Central Government or a railway
administration or in relation to a mine, oil field or a major
port or any corporation established by a Central Act, the
Central Government and

(ii) in relation to any other establishment, the State

Government;

(b) “employee” means any person employed by or through any agency

( including a contractor) with or without the knowledge of the
principal employer, for remuneration in any factory or
establishment to do any work connected with its affairs, whose
average wages do not exceed fifteen thousand rupees per annum
or such amount as may be specified by the Central government
from time to time, on the basis of rise in the consumer price index
number, by notification in the Official Gazette;

(c) “employer” means-

(i) in relation to an establishment which is a factory under the

Factories Act, 1948 the person who has been named as a
manager under Section 7 of that Act; and

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 (ii) in relation to any other establishment, the person who has
ultimate control over the affairs of the establishment and
where the said affairs are entrusted to a manager, managing
director or managing agent, such manager, managing
director or managing agent;

(d) “establishment” means a factory and includes any premises

including the precincts thereof wherein or in any part of which any
industry within the meaning of clause (j) of section 2 of the
Industrial Disputes Act, 1947 (Act 14 of 1947), is carried on and
also includes a shop or a commercial establishment within the
meaning of the State law concerning shops and commercial
establishments;

(e) “wages” means all remuneration, capable of being expressed in

terms of money, which would, if the terms of the contract 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 and include house rent allowance, but does not
include-

(i) the value of

(1) any house accommodation, supply of light, water,
medical attendance, or
(2) any other amenity or any service excluded by general
or special order of the appropriate Government;

(ii) any contribution paid by the employer to any Pension Fund

or Provident Fund or under any scheme of social insurance;
(iii) any travelling allowance or the value of any travelling
concession;
(iv) any sum paid to the person employed to defray special
expenses entailed on him by the nature of his employment;
or
(v) any gratuity payable on discharge;

(f) “competent authority” means the authority appointed by the

appropriate government, by notification in the Official Gazette to
ascertain from time to time the cost of living index number
applicable to the employees employed in the employment specified
in such notification;

(g) “cost of living index number” in relation to employees in any

employment in respect of which minimum rates of wages have
been fixed, means the index number ascertained and declared by
the competent authority by notification in the Official Gazette to be
the cost of living index number, applicable to employees in such
employment;

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3. Prohibition of discrimination against female employees

(1) There shall be no discrimination between male and female

employees in the matter of payment of wages; and the principle of
equal pay for equal work will be applicable to all employees under
the same employer, in respect of work of same or similar nature.
(2) Female employees shall not be discriminated against in the
matters of recruitment, training, transfers and promotions vis-à-vis
the male employees.
(3) Where there is any dispute as to whether work is of same or similar
nature, the matter will be decided by the appropriate government or
by any designated person as may be specified by the appropriate
government, by notification in the Official Gazette.

CHAPTER II
Minimum Wages

4. Fixing of minimum rates of wages

(1) The appropriate government shall fix minimum rates of wages

payable to employees employed in the scheduled employments or
any other employment which may add to the schedule by
notification to be published in the Official Gazette and where
considered necessary may fix separate rates of minimum wages
for different regions.
Provided that the where the appropriate Government have fixed or
revised minimum rates of wages as per the scheduled
employments appended to the Minimum Wages Act 1948, the
same shall be deemed to be the scheduled employment for the
purpose of this Act.
(2) The appropriate Government may fix ‘minimum time rate’ or
‘minimum piece rate’ of wages.
(3) In fixing or revising minimum rates of wages under this section,
different minimum rates of wages may be fixed for different
employments.
(4) Minimum rates of wages may be fixed by any one or more of
following wage-periods, namely-

(i) by the hour,

(ii) by the day,
(iii) by the month; or
(iv) by such other larger wage-period as may be prescribed.

Provided that where such rates of wages are fixed by the

month, for calculating wages for a day, the monthly rate of wages,

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 shall be divided by twenty six and for calculating wages for an
hour, by dividing daily rate of wages by eight.
Provided further that the appropriate Government shall
revise the minimum rates of wages after an interval not exceeding
five years. If however, it fails to revise such wages in five years’
interval; in that situation it shall be competent to revise such wages
retrospectively i.e from the date the revision was due.

5. Minimum rate of wages

(1) Any minimum rate of wages fixed or revised by the appropriate

government in respect of an employment under section 4 may
consist of-

(i) a basic rate of wages and the cost of living allowance at a

rate to be adjusted six monthly, linked with the cost of living
index number applicable to such employee; or
(ii) a basic rate of wages with or without the cost of living
allowance and the cash value of the concessions in respect
of supplies of essential commodities at concessional rates,
where so authorized; or
(2) The cost of living allowance and the cash value of the concessional
rates in respect of essential commodities at concession rates shall
be confirmed at an interval of six months by the competent
authority specified by the appropriate government.

6. Procedure for fixing or revising minimum wages-

(1) In fixing minimum rates of wages in respect of any employment

for the first time under this Act or in revising minimum rates of wages so fixed,
the appropriate government shall either-

(i) appoint as many committees and sub-committees as it may

consider necessary to hold enquiries and advise it in respect
of such fixation or revision, as the case may be, or
(ii) by notification in the Official Gazette, publish its proposals
for the information of the persons likely to be affected
thereby and specify a date not less than two months from
the date of the notification, on which the proposals will be
taken into consideration.

(2) After considering the advice of the Committee or Committees

appointed under clause (i) of sub-section (1) or as the case may
be, all representations received under clause (ii) of that sub-
section, the appropriate government shall, by notification in the
Official Gazette, fix, or, as the case may be, revise minimum rates
of wages in respect of such employment, and unless such

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 notification otherwise provides, it shall come into force on the
expiry of three months from the date of its issue:

Provided that where the appropriate government proposes

to revise the minimum rates of wages by the mode specified in
clause (ii) of sub-section (1), the appropriate government shall
consult the Advisory Board also.

7. Advisory Board-

For the purpose of co-ordinating the work of Committees and sub-

committees appointed under Section 6 and advising the appropriate government
generally in the matter of fixing and revising minimum rates of wages, the
appropriate government shall appoint an Advisory Board.

8. Composition of Committees and Advisory Board

Each of the Committees, Sub-committees and Advisory Board shall

consist of persons to be nominated by the appropriate government representing
employers and employees in the employment, who shall be equal in number and
independent persons not exceeding one third of its total number of members;
one of such independent persons shall be appointed as the Chairman by the
appropriate government.

9. Correction or errors.-

(1) The appropriate government may, at any time, by notification in the

Official Gazette, correct clerical or arithmetical mistakes in any notification fixing
or revising minimum rates of wages under this Act, or errors arising therein from
any accidental slip or omission.

(2) Every such notification shall, as soon as may be after it is issued,

be placed before the Advisory Board for information.

10. Payment of minimum rates of wages-

The employer shall pay to every employee at a rate not less than the
minimum rate of wages fixed under Section 5.

11. Weekly hours and rest-

(1) (a) No employee shall be required or allowed to work for more than
forty eight hours in a week or nine hours in a day.

(b) No employee shall be required or allowed to work on Sunday or

any other day of rest that the employer may fix for an employee or

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 a class of employees unless he has a rest for a whole day on one
of the three days immediately before or after the said day of rest.

(c) The periods of work shall be so fixed that no employee shall work
for more than five hours before he has had an interval for rest of at
least half an hour and with spread-over of not more than twelve
hours, inclusive of intervals for rest.

(d) Where an employee works in an establishment for more than nine

hours in any day or for more than forty-eight hours in a week he
shall in respect of overtime work, be entitled to wages at the rate of
twice the rate of the ordinary rate of wages.

(2) Nothing in this section shall be deemed to affect the provisions of

the Factories Act, 1948 or any Act regulating the conditions of work
in any shop or commercial establishment or motor transport
undertaking.

12. Wages of employees who work for less than normal working day-

If an employee works on any day for less than the normal hours of work,
he shall be entitled to receive wages for a full normal working day.
Provided however, that he shall not be entitled to receive wages for a full
working day, in any case where his failure to work is caused by his unwillingness
to work and not by the omission of the employer to provide him the work.

13. Wages for two or more classes of work.-

Where an employee does two or more classes of work to each of which a

different minimum rate of wages is applicable, the employer shall pay to such an
employee in respect of the time respectively occupied in each such class of
work, wages at not less than the minimum rate of wages in force in respect of
each such class.

14. Minimum time rate wages for piece work.-

Where an emplyee is employed on piece work for which minimum time

rate and not a minimum piece rate has been fixed under this Act, the employer
shall pay to such emplyee wages at not less than the minimum time rate.

CHAPTER III
Payment of Wages

15. Mode of payment of wages

All wages to employees shall be paid in cash or credited, with the

employees’ consent, to their bank account and where majority of employees in
the establishment give their consent in writing, the wages may be paid partly in

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kind and partly in cash, so however, that at least two thirds of the wages are paid
in cash. The value of wages paid in kind will, in case of dispute, be determined
by the appropriate government or the designated authority and its decision shall
be final.

16. Fixation of wage period

The employer may fix the wage period for employees as either daily, or
weekly or fortnightly or monthly. Provided that no wage period in respect of any
employee shall be more than a month.

17. Time of payment of wages.-

(a) The wages of every person employed in an establishment in which

less than one thousand persons are employed, shall be paid before
the expiry of seventh day and in other establishments before the
expiry of tenth day, after the last day of the wage-period in respect
of which wages are payable.

(b) Where the employment of any person is terminated by or on behalf

of the employer, the wages, earned by hum shall be paid before
the expiry of the second working day from the day on which his
employment is terminated.

(c) All payments of wages shall be made on a working day.

18. Payment of wages without deductions

There shall be no deductions made from the wages of the employee,

except those as are specified in section 19.

19. Deductions which may be made from wages

(1) Notwithstanding the provisions of sub-section (2) of Section 47 of

the Indian Railways Act, 1890 (9 of 1890), the wages of an
employee shall be paid to him without deductions of any kind
except those authorised by or under this Act.

(Explanation I) – Every payment made by the employee to the

employer or his agent shall, for the purposes of this Act, be
deemed to be a deduction from wages.

(Explanation II) – Any loss of wages resulting from the imposition,

for good and sufficient cause, upon an employee of any of the
following penalties, namely:-

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 (i) The withholding of increment or promotion (including the
stoppage of increment at an efficiency bar):
(ii) The reduction to a lower post or time-scale or to a lower
stage in
a time scale; or
(iii) Suspension;

shall not be deemed to be a deduction from wages in any case

where the rules framed by the employer for the imposition of any such
penalty are in conformity with the requirements, if any, which may be
specified in this behalf by the State Government by notification in the
Official Gazette.

(2) Deductions from the wages of an employee shall be made only in

accordance with the provisions of this Act, and may be of the
following kinds only, namely: -
(i) fines;
(ii) deductions for absence from duty;
(iii) deductions for damage to or loss of goods expressly
entrusted to the worker for custody; or for loss of money for
which he is required to account, where such damage or loss
is directly attributable to his neglect or default;

(iv) deductions for house-accommodation supplied by the

employer or by Government or any housing board set up
under any law for the time being in force (whether the
Government or the board is the employer or not) or any
other authority engaged in the business of subsiding house-
accommodation which may be specified in this behalf by the
appropriate Government by notification in the Official
Gazette;
(v) deductions for such amenities and services supplied by the
employer as the appropriate Government (or any officer
specified by it in this behalf) may by general or special
order, authorise.

Explanation- the word services (in this clause) does not

include the supply of tools and raw materials required for the
purposes of employment;

(vi) deductions for recovery of loans and advances by the

employer from the funds of the establishment or from any
Welfare Fund statutory or otherwise constituted by the
employer or a trade union for welfare of employees and their
families with approval of appropriate Government of
whatever nature (including advances for travelling allowance
or conveyance allowance), and the interest due in respect
thereof, or for adjustment of over payments of wages;

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(vi) deductions of income tax payable by the employee or any
other tax levied by the Government or deductions required
to be made by order of a court or other authority competent
to make such order;

(vii) deductions for subscription to, and for repayment of

advances from any social security fund or scheme
constituted by law including provident fund or pension fund
or health insurance scheme or fund known by any other
name;

(viii) deductions for payment to cooperative societies approved

by the appropriate Government (or any officer specified by it
in this behalf)

(ix) deductions, made with the written authorisation of the

employee for payment of any premium of his life insurance
policy to the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956),
or for the purchase of securities of the Government of India
or of any State Government or for being deposited in any
Post Office Savings Bank in furtherance of any savings
scheme of any such Government;) or to a scheme of
insurance maintained by the Indian Post Office; and

(ix) deductions made, with the written authorisation of the

employee, for payment of the fees payable by him for the
membership of any trade union registered under the Trade
Union Act, 1926 (16 of1926)

(xi) deduction for payment of insurance premia on Fidelity

Guarantee Bonds

(xii) deductions for recovery of losses sustained by a railway

administration on account of acceptance by the employee of
counterfeit or base coins or mutilated or forged currency
notes;

(xiii) deductions for recovery of losses sustained by a railway

administration on account of the failure of the employee to
invoice, to bill, to collect or to account for the appropriate
charges due to that administration whether in respect of
fares, freight, demurrage, wharfage and carnage or in
respect of sale of food in catering establishments or in
respect of commodities in grain shops or otherwise;

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 (xiv) deductions for recovery of losses sustained by a railway
administration on account of any rebates or refunds
incorrectly granted by the employee where such loss is
directly attributable to his neglect or default;

(xv) deductions, made with the written authorisation of the

employee, or contribution to the Prime Minister’s National
Relief Fund or to such other fund as the Central
Government may, by notification in the Official Gazette,
specify;

(3) Notwithstanding anything contained in this Act, the total amount of

deductions which maybe made under sub-section (2) in any wage-
period from the wages of any employee shall not exceed –

(i) in cases where such deductions are wholly or partly made

for payments to cooperative societies under clause (ix) of
sub-section (2), seventy five percent of such wages, and
(ii) in any other case, fifty per cent of such wages;

Provided that where the total deductions authorised

under sub-section (2) exceed seventy five per cent or, as
the case may be, fifty percent of the wages, the excess may
be recovered in such manner as may be prescribed.
Provided further that the deductions for absence form
duty may be made only on account of absence of an
employed person from the place or places where, by the
terms of his employment, he is required to work, such
absence being for the whole or any part of the period during
which he is so required to work. The deductions shall b e
made proportionately. However if ten or more employees
acting in concert absent themselves without due notice (that
is to say without giving the notice which is required under
the term of their contract of employment) and without
reasonable cause, such deduction from any such employee
may include such amount not exceeding his wages for eight
days as may by any such terms be due to the employer in
lieu of the due notice.

(4) Nothing contained in this section shall be construed as precluding

the employer from recovering from the wages of the employee or
otherwise any amount payable by such person under any law for
the time being in force other than Indian Railways Act, 1890 (9 of
1890).

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 Chapter IV
Payment of Bonus

20. Payment of Bonus

There shall be paid to every employee an annual bonus calculated

at 8 1/3% of the wages earned by him during the previous accounting
year. Wages for the purpose of calculating bonus will comprise basic
wage, dearness allowance, retention allowance, if any, in case of, city
compensatory allowance and no other allowance. Demand for bonus in
excess of this annual bonus, either on the basis of profits earned in the
accounting year or on basis of production/productivity will be determined
through collective bargaining by the employer and employees, failing
which through arbitration or adjudication under the Industrial Disputes Act
1947. The maximum amount of bonus, including 8.33 % annual bonus
shall not however exceed 20% of the wages. Every employee who has
worked atleast for thirty days in an accounting year shall be eligible for
payment of bonus.

Provided that no bonus shall be payable for the first five accounting years
unless the employer has earned profit during this period.

21. Payment of bonus out of allocable surplus

(a) The bonus shall be paid out of the allocable surplus which shall be
an amount equal to 60% of the available surplus arrived at as per
provisions of clause (b) of this section.

(b) The available surplus shall be the amount calculated as per

schedule appended to Act.

(c) Audited accounts of companies shall not normally be questioned.

Provided that wherever there is any dispute regarding the quantum
of payment of bonus the matter may be resolved by the conciliation
machinery appointed by the appropriate Government or through
arbitration or adjudication under the Industrial Disputes Act 1947.

22. Disqualification for bonus

Notwithstanding anything contained in this Act, an employee shall be

disqualified from receiving bonus under this Act, if he is dismissed from service
for

(a) fraud; or
(b) riotous or violent behaviour while on the premises of the
establishment; or
(c) theft, misappropriation or sabotage of any property of the
establishment.

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23. Proportionate reduction in bonus in certain cases

Where an employee has not worked for all the working days in an
accounting year, the minimum bonus of 8.33 percent of his wage or higher that is
payable to other employees in the establishment for the days, he has worked in
that accounting year, shall be proportionately reduced.

24. Set on and set off of allocable surplus

(1) Where for any accounting year, the allocable surplus exceeds the
amount of maximum bonus payable to the employees in the
establishment under section 20, then, the excess shall, subject to a
limit of twenty percent of the total salary or wage of the employees
employed in the establishment in that accounting year, be carried
forward for being set on in the succeeding accounting year and so
on up to and inclusive of the fourth accounting year to be utilised
for the purpose of payment of bonus in the manner illustrated in the
Fourth Schedule.

(2) Where for any accounting year, there is no available surplus or the
allocable surplus in respect of that year falls short of the amount of
minimum bonus payable to the employee in the establishment
under section 10, and there is no amount or sufficient amount
carried forward and set on under sub-section (1) which could be
utilised for the purpose of payment of the minimum bonus, then,
such minimum amount or the deficiency, as the case may be, shall
be carried forward for being set off in the succeeding accounting
year and so on up to and inclusive of the fourth accounting year in
the manner illustrated in the (Fourth) Schedule.

(3) The principle of set on and set off as illustrated in the Fourth
Schedule shall apply to all other cases not covered by sub-section
(1) or sub-section (2) for the purpose of payment of bonus under
this Act.
(4) Where in any accounting year any amount has been carried
forward and set on or set off under this section, then, in calculating
bonus for the succeeding accounting year, the amount of set on or
set off carried forward from the earliest account year shall first be
taken into account.

25. Adjustment of customary or interim bonus against bonus payable

under the Act

Where in any accounting year

(a) the employer has paid any Puja Bonus or other customary bonus
to employees; or

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 (b) the employer has paid a part of the bonus payable under this Act to
employees before the date on which such bonus becomes
payable, then, the employer shall be entitled to deduct the amount
of bonus so paid from the amount of bonus payable by him to the
employee under this Act in respect of that accounting year and the
employee shall be entitled to receive only the balance.

26. Deduction of certain amounts from bonus payable under the Act.-

Where in any accounting year, an employee is found guilty of misconduct

causing financial loss to the employer, then, it shall be lawful for the employer to
deduct the amount of loss from the amount of bonus payable by him to the
employee under this Act in respect of that accounting year only and the
employee shall be entitled to receive the balance, if any.

27. Time limit for payment of bonus.-

All amounts payable to employee by way of bonus under this Act shall be
paid in cash by his employer-

(a) where there is a dispute regarding payment of bonus pending

before any authority under Section 20, within a month from the
date on which the award becomes enforceable or the settlement
comes into operation, in respect of such dispute;
(b) in any other case, within a period of eight months from the close of
the accounting year Provided that the appropriate Government or
such authority as the appropriate Government may specify in this
behalf may, upon an application made to it by the employer and for
sufficient reasons, by order, extend the said period of eight months
to such further period or periods as it thinks fit; so, however, that
the total period so extended shall not in any case exceed two
years.

28. Special provision with respect to payment of bonus linked with

production or productivity.-

Notwithstanding anything contained in this Act -

(a) Where an agreement or a settlement has been entered into by the

employees with their employer before the commencement of this
Act or
(b) Where the employees enter into any agreement or settlement with
their employer after such commencement, for payment of annual
bonus linked with production or productivity in lieu of bonus based
on profits payable under this Act, then, such employees shall be
entitled to receive bonus due to them under such agreement or
settlement, as the case may be.

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 29. The Provisions of Payment of Bonus not to apply to certain classes
of employees.-

Notwithstanding anything contained in this Act the employees employed

as seamen in the establishment of Merchant Shipping Companies, employees of
establishments and Departments of Central Government, State Government and
local authorities, employees of Indian Red Cross Society or any like institutions,
employees of hospitals, chamber of commerce, or charitable institutions not
established for making profits, employees of universities, other educational
institutions, a construction work which is not carried for more than a year and in
any establishment in which less than ten persons are employed on any day
during an accounting year.

Chapter V
Miscellaneous

30 Power to give directions and remove difficulties –

(a) The Central Government may give directions to the Government of
any State as to the carrying into execution in the State of the
provisions contained in this Act.
(b) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may by order to be published in the
Official Gazette, make such provisions not inconsistent with the
provisions of this Act, as appears to it to be necessary or expedient
for removing the difficulty

31. Claims under the Act and appointment of authority –

(1) The appropriate government may, by notification in the Official
Gazatte, appoint-
(b) any Commissioner for Workmen’s Compensation; or
(c) any officer of Central Government exercising functions as,-
(i) Regional Labour Commissioner; or
(ii) Assistant Labour Commissioner with at least two years’
experience; or
(c) any officer of the State Government not below the rank of
Assistant Labour Commissioner with at least two years’
experience; or
(d) a presiding officer of any Labour Court or Industrial Tribunal,
constituted under the Industrial Disputes Act, 1947 (14 of 1947), or
under any corresponding law relating to the investigation and
settlement of industrial disputes in force in the State; or
(e) any other officer with experience as a Judge of a Civil Court
or a Judicial Magistrate’

as the authority to hear and decide for any specified area all the claims arising
out of non-payment of wages, deductions made by employer from the wages or
remuneration of an employee which are not according to the provisions of this
Act, payment of less wages than the minimum wages, non-payment of wages for

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the leave period, non-payment of over time, non-payment of equal remuneration
to female employee as prescribed under this Act, including non-payment of
bonus (if it is not disputed).
The appropriate Government may for the reasons to be recorded in
writing, transfer any matter from one authority to another authority.

(2) The authority may order payment of compensation upto ten times
the amount of wages payable in addition to the actual amount as
specified in sub-section (1). The authority shall, before ordering
compensation, have regard to the circumstances due to which the
dues had remained unpaid or less paid.

(3) If an employer fails to pay the outstanding dues of an employee

that are ordered to be paid by the authority under sub-section (2),
such amount may be recovered –

(a) if the authority is Magistrate, by the authority as if it were a fine

imposed by him as Magistrate, and

(b)If the authority is not a Magistrate, by any Magistrate to whom

the authority makes an application in this behalf, as if it were a fine
imposed by such Magistrate.

(4) Any claim arising out of any dues payable as prescribed under sub-
section (1) above may be filed before the authority either by the
employee himself, or through any legal practioner or any official of
a registered Trade Union of which the employee is member,
authorised in writing to act on his behalf or through any other
representative, or any Inspector appointed under this Act.
Provided that every such application shall be presented
within six months from the date on which the amount claimed
becomes payable.
Provided further that any application may be entertained
after the said period of six months if the applicant satisfies the
authority that he had sufficient cause for not making the application
within such period.
Provided further that where there is any dispute as to the person or
persons being the legal representative or the representatives of the
employer or of the employed person, the decision of the authority
on such dispute shall be final. Any inquiry under this sub-section
shall be deemed to be a judicial proceeding within the meaning of
sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).

(5) If the authority hearing an application under this section is satisfied

that the application was either malicious or vexatious, the authority
may direct that a penalty not exceeding one thousand rupees be

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 paid to the employer or other person responsible for the payment
of wages by the person presenting the application.

(6) All amounts payable by an employer to an employee as an amount

of wages of the employee under this Act or otherwise due to the
employee und this Act or any rule or order made there under shall,
if such amount could not or cannot be payed to the employee on
account of his death before payment or on account of his
whereabouts not being known, be deposited with the Labour
Welfare Commissioner or the prescribed authority, who shall deal
with the money so deposited in such manner as may be
prescribed.

(7) No Civil Court shall entertain any such suit for the recovery of
wages is such wages are claimable under the provisions of this
Act.

(8) An appeal against the order dismissing either wholly or in part an

application made under this section or against a direction made
under this section may be preferred, within thirty days of the date
on which on which the order or direction was made, before the
Labour Court or Industrial Tribunal established under the Industrial
Disputes Act 1947.

32. Contracting out

(a) Any contract or agreement whereby an employee forgoes or

redress his right to minimum wages or any other right conferred by
this Act, shall be null and void ab initio.

(b) Nothing contained in this Act shall be construed as precluding any

employee from entering into an agreement with an employer for
granting his rights or privileges in respect of any matter which are
more favourable to him than those to which he would be entitled
under this Act.

33. Appointment and powers of inspectors.-

(1) The appropriate government may, by notification in the Official

Gazette appoint such persons as it thinks fit to be inspectors for the
purposes of this Act and define the local limits within which they
shall exercise their powers under this Act.
(2) Subject to any rules made by the appropriate government in this
office, an inspector may, within local limits for which he is
appointed:

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 (i) enter, at all reasonable hours, with such assistants ( if any)
being persons in the service of the government or any local
authority, as he thinks fit, any premises or place where
employee are employed, for the purposes of examining any
registers or records required to be kept under this Act or
rules made there-under, and require the production thereof
for inspection;
(ii) examine any person whom he finds in such place of
employment and who, he has reasonable cause to believe is
a employee employed therein;
(iii) seize or take copies of registers or records or portions
thereof as he may consider relevant in respect of an offence
under this Act which he has reason to believe has been
committed by an employer; and
(iv) exercise such other powers as may be prescribed.

34. Records, Returns and Notices

(a) Every employer of an establishment to which this Act applies shall

maintain the following registers:

(i) Registers of muster roll-cum-wages register.

(ii) Any other register that the appropriate government may
prescribe for carrying out the provisions of the Act.

(b) Every employer shall display a notice on the notice board, in a

conspicuous place at or near the main entrance of the
establishment in the language of the majority of the persons
employed therein, containing the wage rates of employees
category-wise, the wage period and the day or date and time of
payment of wages.
(c) Every employer of an establishment shall send an annual return in
the prescribed form to the authority as may be prescribed by the
appropriate government.
(d) An employer who is maintaining records and information on
computer need not maintain, the prescribed manual records. He
will however, ensure that whatever in formation or statement is
required by the inspector, is supplied immediately on demand in
the form a neat and clear print out with the dated signature of a
responsible officer of the establishment.
(e) All registers required to be maintained under this Act or rules made
there-under shall be preserved for a period of four years after the
date of last entry made therein.

35. Penalties.-

(a) Any employer who contravenes any provision of this Act or rules
made there-under shall be punishable with imprisonment for a term

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 which may extend to one year or with fine which may extend to five
thousand rupees but which shall not be less than two thousand
rupees, or with both.

Provided that in imposing any fine for an offence under this

Section, the court shall take into consideration the amount of any
compensation already awarded or accrued in any proceedings
taken under Section 31.
(b) If any person has been convicted of any offence again contravenes
the same provision, he shall be punishable on a subsequent
conviction with imprisonment for a term which may extend to two
years or with fine which may extend to ten thousand rupees but
which shall not be less than five thousand rupees or with both.

(c) For the purpose of sub-section (b) no cognizance shall be taken of

any conviction made more than two years before the commission
of the offence for which the person is being subsequently
convicted.

36. Cognizance of Offences.-

(a) No court shall take cognizance of any offence under this Act except
on a complaint by an inspector.

(b) No court below that of Presidency Magistrate or of a Magistrate of

the First Class shall try any offence punishable under this Act.

(c) No court shall take cognizance of a complaint against any person

for an offence under section 3(1); 10; 17; 18 and 27 unless an
application has been presented under section 31 and has been
granted wholly or in part.

(d) No court shall take cognizance of any offence punishable under

this Act unless complaint thereof is made within three months of
the date on which the alleged commission of the offence came to
the notice of an inspector or application under Section 31 has been
granted wholly or in part, as the case may be.

37. Protection to person acting under this Act.-

No suit, prosecution or other legal proceedings shall lie against any

person for anything which is in good faith done or intended to be done under this
Act.

38. Exemption/exceptions

(a) The appropriate government may by notification in the Official

Gazette, exempt conditionally or unconditionally any establishment

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 or class of establishment for such period as may be specified
therein, from all or any of the provisions of this Act.

(b) Nothing in this Act shall apply to employees employed in any

establishment carried on by a department of government, directly.

(c) Nothing in this Act shall apply to any employee who is living with
the employer, is a member of his family and is dependant on him.

Explanation- In clause (c) a member of the employer’s family shall

be deemed to include his or her spouse or child or parent or
brother or sister.

39. Power to make rules –

(1) The appropriate Government may, subject to the condition of

previous publication , by notification in the Official Gazette make
rules for carrying out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing power, such
rules may –
(i) prescribe the term of office of the members, the procedures
to be followed in the conduct of business, the method of
voting, the manner of filling up of Casual Vacancies in
membership, if and the quorum necessary for the
transaction of business of the Committees, Sub-
Committees and the Advisory Boards;
(ii) prescribe the method of summoning witnesses, production
of documents relevant to the subject – matter of the enquiry
before the Committees, Sub- Committees and the Advisory
Board:
(iii) prescribe the mode of computation of the cash value of
wages in kind and of concessions in respect of supplies of
commodities at concessional rates:
(iv) prescribe the forms of registers and records to be
maintained and the particulars to be entered in such
registers and records:
(v) prescribe the procedure for the imposition of fines,
conditions and acts and omissions in respect of which the
same can be imposed:
(vi) prescribe the powers of inspectors for the purposes of this
Act:
(vii) regulate the scale of costs which may be allowed in
proceedings under this Act:
(viii) prescribe the amount of court – fees payable in respect of
any proceedings under this Act; and
(ix) any other matter which has to be or may be prescribed
under the Act

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40. Repeal and Saving –

(a) The Payment of Wages Act 1936, the Minimum Wages Act 1948,
The Payment of Bonus Act 1965 and the Equal Remuneration Act
1976 shall stand repealed on the commencement of the provisions
of this Act.
(b) Notwithstanding such repeal, anything done or any action taken or
purported to have been taken under the Acts so repealed shall in
so far as it is not inconsistent with the provisions of this Act, be
deemed to have been done or taken under the corresponding
provisions of this Act.

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