THE PAYMENT OF WAGES ACT, 1936
Payment of Wages Act regulates and governs payment of wages. The Act provides for responsibility of payment of wages, disbursement of wages, period of wages, fixation of wage period, time and mode of payment of wages, wage cycle etc.
APPLICABILITY
The Act applies:
1. To every establishment covered by the State Shops and Establishments Act
2. To Factories, Railways etc.
3. Industrial establishment mentioned in Section 2(ii)(a) to (g)
4. By notification under Section 2(ii)(h)
TIME OF PAYMENT OF WAGES
1. An employer shall not delay unduly the payment of wages to his employees.
2. In case of an establishment, employing less one thousand persons, the wages are to paid before the expiry of seventh day
3. In any other case, before the expiry of tenth day after the last day of the wage period (Section 5
PAYMENT OF WAGES TO AN EMPLOYEE WHOSE SERVICES WERE TERNMINATED
Where the services of an employee are terminated by the employer, his wages become payable before the expiry of the second working day from the day on which the employment is terminated
MANNER OF PAYMENT OF WAGES
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- The Act stipulates that all wages are to be paid through banking mode
- Further, all payments of wages are to be made on a working day [Section 5(4)]