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.
The Act applies:
1. To every establishment covered by the Maharashtra Shops and Establishments Act, 1948
2. To Factories, Railways etc.
3. Industrial establishment mentioned in Section 2(ii)(a) to (g)
4. By notification under Section 2(ii)(h)
The Act does not apply to employees drawing wages more than Rs 18000 per month [Section 1(6)]
Employees drawing wages up to Rs 6500 per month are covered under the Act as amended with effect from 6th September 2005
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)
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
1. The Act stipulates that all wages are to be paid in current coins or coin or currency notes or in both but not by way of cheque or by crediting to the account of the employee (Section 6)
2. Further, all payments of wages are to be made on a working day [Section 5(4)]
1. Every employer shall fix wage period
2. Every employer shall ensure that wages are paid within the periods prescribed under the Act
3. He shall ensure that wages are paid in current coin or current notes
4. He shall pay wages on working days
5. He shall extend all co-operation necessary to the Inspectors for conducting enquiry and afford all facilities to him for making entry, inspection, supervision, examination or enquiry under this Act
6. He shall display a notice containing an abstract of the Act and the rules in English and in the language of majority of employees
7. Every employer shall maintain records and registers in the prescribed form containing particulars of persons employed, work performed, wages paid deductions effected and receipts given by them
8. He shall preserve the records fot s period of three years
