Payment Wages Act 1936

Purpose of the Act

The main objective of the Act is to avoid unnecessary delay in the payment of wages and to prevent
unauthorized deductions from the wages. Every person employed in any factory, upon any railway or
through sub-contractor in a railway and a person employed in an industrial or other establishment.The
State Government may by notification extend the provisions to any class of persons employed in any
establishment or class of establishment. The benefit of the Act prescribes for the regular and timely
payment of wages (on or before 7th day or 10th day of after wage period is greater than 1000 workers)
and Preventing unauthorized deductions being made from wages and arbitrary fines.

Salary statics
Wages are averaging less than Rs. 6500.00 per month only are covered or protected by the Act by the
amendment in 2005 by {Section 1(6)}.Wages means contractual wages and not overtime wages. They
are not to be taken into account for deciding the applicability of the Act in the context of section 1(6) of
the Act. Wages must be paid in current coin or currency notes or in both and not in kind. It is, however,
permissible for an employer to pay wages by cheque of by crediting them in the bank account if so
authorized in writing by an employed person.

Summary of the provisions of the Act

The provisions of the Act regarding the imposition of fines on the employed person are as follows such
as, The employer must exhibit on his premises a list of acts or omissions for which fines can be
imposed, Before imposing a fine on an employed person he must be given an opportunity of showing
cause against the fine, The amount of fine must not exceed 3 percent of the wages, A fine cannot be
imposed on an employed person who is under the age of 15 years, A fine cannot be recovered by
installments or after 90 days from the day of the act or omission for which it is imposed, The moneys
realized from fines must be applied to purposes beneficial to employed persons.
Subsection 8(3), 10(1-A) & Rule 15} deals with Any person desiring to impose a fine on an employed
person or to make a deduction for damage or loss shall explain personally or in writing to the said
person the act or omission, or damage or loss in respect of which the fine or deduction is proposed to
be imposed, and the amount of fine or deduction, which it is proposed to impose, and shall hear his
explanation in the presence of at least one other person, or obtain it in writing.

The procedure and Competent authority which

deals with employment matters
The procedure to employ a person has to follow for claiming deducted or delayed wages.If contrary to
the provisions of the Act any deduction has been made from the wages of an employed person or any
payment of wages has been delayed, he has to make an application for claiming the same to the
Authority appointed under the Act.Such application can be made by the employed person himself or a
legal practitioner or an official of a registered trade union.Such application has to be made within a

period of 12 months from the date on which the date on which the deduction from the wages was made
or from the date on which the payment of the wages was due to be made.
There is a competent Authority to entertain and decide an application for payment of subsistence
allowance. The subsistence allowance payable to an employee placed under suspension pending
Departmental Enquiry is covered within the definition of wages given under Section 2(6) of the Act and,
therefore, the Authority is competent to entertain and decide an application for payment of subsistence
allowance.
The Authority under the Payment of Wages Act is a Court of summary jurisdiction having powers to
deal with the simple matter of delay in payment of wages or deduction from wages. It is not within the
competence of the Authority to decide the question of the status of an employed person. The matter is
a complicated question of law as also of fact. There is an agreement between an employer and his
employees authorizing the deduction of union subscription from the salaries of the employer null and
void under Section 23 of the Act, Such agreement being beneficial and advantageous to the employees
is not null and void under Section 23 of the Act.

Employer's duty
Employer's required to display the abstracts of the Act in his factory or establishment. Every employer
must display in his factory or establishment a notice containing the abstracts of the Act and the rules
made thereunder in English and also in the language understood by the majority or the persons.

Conclusion
The Payment wages act is a regulation drawn up to protect the employees rights from being infringed
by the employer. The employee should be paid on time and should not be harassed against anything
during the employment. It has however given a lot of protections to employees and will continue to do
so in the future as well.

Industrial employment (standing orders) act,

1946

There are service conditions or service rules for various employees like Government employees, bank emp
Employment (Standing Orders) Act, 1947 is designed to provide service rules to workmen.

The object of the Act is to require employers in industrial establishments to formally define conditions of employ

What are Standing Orders - Standing Orders means rules of conduct for workmen employed in industrial establishm

to matters set out in the schedule to the Act. [section 2(g)]. The schedule to the Act requires that following should be spec
(a) classification of workmen i.e. temporary, badli, casual, permanent, skilled etc.
(b) manner of intimating to workmen working hours, shift working, transfers etc.
(c) Holidays
(d) Attendance and late coming rules
(e) Leave rules
(f) Leave eligibility and leave conditions
(g) Closing and reopening of sections of industrial establishment

(h) termination of employment, suspension, dismissal etc. for misconduct and acts or omissions which constitute miscond
(i) Retirement age
(j) Means of redressal of workmen against unfair treatment or wrongful exactions by employer
(k) Any other matter that may be prescribed.
Coverage of Act - The Act is applicable to all industrial establishments employing 100 or more workmen. [section 1(3)]

Industrial establishment means (i) an industrial establishment as defined in section 2(i) of Payment of Wages A
Factories Act (iii) Railway (iv) Establishment of contractor who employs workmen for fulfilling contract with owner of an

The term industrial establishment includes factory, transport service, construction work, mines, plantation, w
power etc.

WORKMAN - Workman has meaning assigned to it under section 2(s) of Industrial Disputes Act. [section 2(i)]. T
manual or clerical work. However, workman does not include employees engaged in managerial or administrative ca
does not include workers subject to Army Act, Navy Act or Air Force Act or to police or prison services.

Approval of Standing Orders - Every employer covered under the Act has to prepare Standing Orders, covering the ma
copies of these should be sent to Certifying Officer for approval. [section 3(1)]. Certifying Officer means Labour C
Government to be Certifying Officer. [section 2(c)].

The Certifying Officer will inform the Union and workmen and hear their objections. After that, he will cert
establishment. [section 5]. Till standing orders are certified, Model Standing Order prepared by Government will autom

Standing order should be displayed in English and local language on special notice boards at or near entrance of t

of Standing Order shall be done by following similar procedure. [section 10].

Once the Standing Orders are certified, they supersede any term and condition of employment, contained in the appointm
Standing Order and Appointment Letter, the provisions of Standing Order prevail - Eicher Goodearth Ltd. v. R K So

Standing orders are binding on employer and employee. These are statutorily imposed conditions of service.
themselves (meaning that the Standing Orders even when approved, do not become law in the sense in which Rule
legislation become after they are published as prescribed.) - Rajasthan SRTC v. Krishna Kant - AIR 1995

Model Standing Orders - The Act has prescribed Model Standing Orders. These are automatically applicable till emplo
these are approved by Certifying Officer. [section 12A].

Disciplinary Action - The most important use of Standing Orders is in case of disciplinary action. A workman can be pu
misconduct as defined under the Standing Orders. The Model Standing Orders contain such acts like insubordinatio
to employers property, taking bribe, habitual absence or habitual late attendance, riotous behaviour, habitual neglect of w
misconducts. The Certified Standing Orders may cover other acts as misconduct, if approved by Certifying Officer.

Subsistence Allowance Where a workman is suspended by employer pending investigation or enquiry into complaints
workman shall be paid subsistence allowance equal to 50% of wages for first 90 days of suspension and 75% of wag
disciplinary proceedings. [section 10A(1)]. - - Wages has same meaning as under section 2(rr) of Industrial Disputes Act

The Industrial Employment ( Standing Orders) Act,

1946
The Industrial Employment ( Standing Orders) Act, 1946
It applies to every Industrial establishment wherein 100 or more workmen are employed or were
employed on any day of the preceding 12 months
The Act does not apply to :
Any industry to which The Bombay Industrial Relations Act; 1946 apply.
Any industry to which The Madhya Pradesh Industrial Employment ( Standing Orders) Act 1961 apply
Object of the Act:
1. Object of the Act is to require the employers in industrial establishments to define the
conditions of employment under them and make the conditions known to workmen employed
by them before they accept the employment .
2. To maintain uniformity in terms and conditions of employment in respect of workmen belonging
to the same category . The rules made in the regard to these conditions is called Standing
Orders
MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS ACT

1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or

badlis.
2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage
rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying for, and the authority which may grant leave and holidays.
Requirement to enter premises by certain gates, an liability to search.
6. Closing and reporting of sections of the industrial establishment, temporary stoppages of work
and the rights and liabilities of the employer and workmen arising there from.
7. Termination of employment, and the notice to be given by employer and workmen.
8. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
9. Means of redress for workmen against unfair treatment or wrongful exactions by the employer
or his agents or servants.
10. Any other matter which may be prescribed.
Submission of draft standing orders.Within six months of the application of the Act , to an industrial establishment, the employer shall
submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in
his industrial establishment.
Standing orders to be accompanied by particulars of workmen: The draft standing orders submitted
shall be accompanied by a statement giving prescribed particulars of the workmen employed in the
industrial establishment including the name of the trade union, if any, to which they belong.
Employers in similar establishments may submit a joint draft for their convenience.
Conditions for certification of standing orders.Standing orders shall be certified under this Act if-(a) provision is made for every matter set out which is applicable to the industrial establishment, and
(b) the standing orders are otherwise in conformity with the provisions of this Act; the Certifying
Officer is under an obligation to adjudicate upon the fairness or reasonableness of the provisions of any
standing orders.
Certification of standing orders :

Copy of the draft standing order to be sent to trade union or workmen: On receipt of the draft,
the Certifying Officer shall forward a copy to the trade union, if any, of the workmen, or where
there is no such trade union, to the workmen ,in the prescribed form requiring objections, if

any, which the workmen may desire to make to the draft standing orders to be submitted to
him within fifteen days from the receipt of the notice.

After giving the employer and the trade union or representatives of the workmen an
opportunity of being heard, the Certifying Officer shall decide whether or not any modification
or addition to the draft submitted by the employer is necessary to render the draft standing
orders certifiable under this Act, and shall make an order in writing accordingly

The Certifying Officer shall thereupon certify the draft standing orders, after making any
modifications and within seven days send copies of the certified standing orders to the
employer and to the trade union or other prescribed representatives of the workmen.

Appeals
Any employer, workman, trade union or other prescribed representatives of the workmen aggrieved by
the order of the Certifying Officer within 30 days from the date on which copies are sent by the
certifying officer, appeal to the appellate authority, and the appellate authority, whose decision shall
be final, shall by order in writing confirm the standing orders either in the form certified by the
Certifying Officer or after amending the said standing orders by making such modifications or additions
as it thinks necessary to render the standing orders certifiable under this Act. The appellate authority
shall, within seven days of its order , send copies of the Certifying Officer, to the employer and to the
trade union or other prescribed representatives of the workmen.
Date of operation of standing orders.Standing orders shall, unless an appeal is preferred , come into operation on the expiry of thirty days
from the date on which authenticated copies are sent or where an appeal is preferred, on the expiry of
seven days from the date on which copies of the order of the appellate authority are sent.
Register of standing orders.A copy of all standing orders as finally certified under this Act shall be filed by the Certifying Officer in
a register in the prescribed form maintained for the purpose, and the Certifying Officer shall furnish a
copy to any person on payment of the prescribed fee.
Posting of standing orders.The text of the certified standing orders shall be prominently posted by the employer in English and in
the language understood by the majority of his workmen on special boards maintained for the purpose
at or near the entrance through which the majority of the workmen enter the industrial establishment
and in all departments where the workmen are employed.

Duration and modification of standing orders.A certified standing orders shall not, except on agreement between the employer and the workmen or
a trade union or other representatives of the workmen be liable to modification until the expiry of six
months from the date on which the standing orders or the last modifications thereof came into
operation. An employer or workman or a trade union or other representative body of the workmen may
apply to the Certifying Officer for the modification and such application shall be accompanied by five
copies of the modifications proposed to be made, and where such modifications are proposed to be

made by agreement between the employer and the workman or a trade union or other representative
of the workmen, a certified copy of that agreement shall be filed along with the application.