TOC \o "1-3" \h \z \u THE PAYMENT OF WAGES ACT, 1936 PAGEREF _Toc477542879 \h 3
INTRODUCTION PAGEREF _Toc477542880 \h 3
SIGNIFICANCE & HISTORICAL BACKGROUND PAGEREF _Toc477542881 \h 3
OBJECT PAGEREF _Toc477542882 \h 4
SCOPE PAGEREF _Toc477542883 \h 4
CHANGES BROUGHT IN THE PAYMENT OF WAGS ACT, 1936 PAGEREF _Toc477542884 \h 5
PROPOSED CHANGES PAGEREF _Toc477542885 \h 5
TIMELINE PAGEREF _Toc477542886 \h 6
1. Payment of Wages (Amendment) Bill 2016 PAGEREF _Toc477542887 \h 6
2. The Payment of Wages (Amendment) Ordinance, 2016 PAGEREF _Toc477542888 \h 7
3. The Payment of Wages (Amendment) Bill, 2017 PAGEREF _Toc477542889 \h 7
SIGNIFICANCE OF THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017: PAGEREF _Toc477542890 \h 9
CRITICAL ANALYSIS OF THE ACT PAGEREF _Toc477542891 \h 10
BENEFITS: PAGEREF _Toc477542892 \h 10
DEFECTS: PAGEREF _Toc477542893 \h 11
CONCLUSION PAGEREF _Toc477542894 \h 12
THE PAYMENT OF WAGES ACT, 1936
The Payment of Wages Act is considered to be an important social security step towards the welfare of the working class in order to remedy mischief played by the employers.
With the growth of industries in India, problems relating to payment of wages to the persons employed took ugly turn. Before the codification of the payment of wages act, there were several unfair labour practices pertaining to the payment of wages. The wages were paid at irregular intervals and it was not uniform. Employees were not paying the wages to their workmen at proper time and also sometimes in kinds, which could not be easily accounted for, as there was no specific method to calculate that. This resulted in workmen being indebted and poverty stricken in spite having a job and working. The industrial workers were forced to raise their heads against the exploitation.
SIGNIFICANCE & HISTORICAL BACKGROUND
The first steps towards codification of law to protect the wages was made in 1925 by a private member ‘s bill called the "Weekly Payment Bill" .The Bill was withdrawn on the assurance of the Government that necessary steps were being taken by it to protect and regulate the payment of the wages to the workers who were subjected to imposition of fines , unauthorized deductions and non-payment of wages in time etc.
In 1926, the Government of India wrote to the local governments to ascertain the position with regard to the delays which occurred in the payment of wages to the persons employed in Industry , material so collected was placed before the Royal Commission on labour which was appointed in 1929.
The Government of India re-examined the subject in February, 1933 on the basis of the report given by Commission; a Bill embodying the conclusion then reached, was introduced and circulated for the purpose of opinion . A motion for reference of the Bill to a Select Committee was tabled during the Delhi Session of 1933-34.
Unfortunately the Assembly dissolved in 1934 and the Bill could not take the shape of the Act.
The Payment of Wages Act is based upon the same principle as the original but has been revised throughout in the light of the criticism received when the original Bill was circulated .Ultimately after completing a circuitous journey , the Payment of Wages Act was passed in 1936 , which came into force on 28th march 1937.
The Act extends to the whole of India.
The Payment of Wages Act was enacted for the purpose of safeguarding the wages of the employees under certain conditions laid down in the Act .The Act is intended to regulate the payment of wages to certain classes of persons employed in industries and the object is to provide for a speedy and effective remedy to the employees in respect of their claims arising of illegal deductions or unjustified delay made in paying the wages to them.
Hence the objects of this Act are eight-fold:
It provides that the employed persons shall be paid their wages in a particular form;
The payments will be made at regular intervals;
It prohibits unlawful and unauthorized deductions from the wages , except those authorised under the Act
The Act provides for the responsibility for payment of wages, fixation of wage period, time and mode of payment of wages, permissible deduction
It also casts upon the employer a duty to seek the approval