SIGNIFICANCE AND
Historical BACKGROUND In an economy where even minimum wages are not paid to the workers, the need to protect the
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wages earned by them has greatest significance”. The Act is considered to be an important social step towards security the welfare of the working class in order to remedy mischief played by the employers. Before the codification of Payment of ages Act, Act, there were several unfair labor practices pertaining to the payment of wages. The employers did not make payment of wages in cash and sometimes in kind. The wages were paid after much delay which resulted into poverty and growing indebtedness. !ot only the employers made so many deductions out of wages earned by the employees and ultimately they paid only a very meager part of it. At those times impositions of fines was a fairly general practice in perennial factories and railways. There used to be other deductions from the wag es paid to the workers such as for medical, attendance, education, reading rooms, interest on advance of their own wages, charities and religious purposes selected by employer, etc. A common practice in the cotton mills was the handing over to the weaver weav er of cloth from his own loom spoilt in the course of manufacture and the deduction from his wages of the wholesale selling price. Another practice followed in some mills was the deduction from his wages of the whole selling price. Another Another practice followed in some mills was the deduction of two days" pay for one day"s absence. The payment of wages was considerably uncertain in regard to time and amount. Through these unfair labor practices the capitalists tried their level best to e#ploit the labor class as much a s they could. Against this unfairness, the workers united and for the first time in $%&', a private Bill, entitled (eekly (eekly Payment Bill”, was introduced in )egislative assembly. The The Bill sought to remedy some of the unfair )abor practices. *owever, it could not be p assed and was withdrawn on assurance
of the +overnment that it would codify a law for regular payment of wages and would check unlawful deductions and other malpractices adopted by the employers. The payment of wages Act is based upon the same principles as the original but has been revised throughout in the light of criticism received when the original Bill was circulated. ltimately after completing a circuitous -ourney, The Payment of ages Act was passed in $%/ which came into force on &0th 1arch $%2. A series of amendments have been made in order to keep pace with the changing circumstances and necessities of labor class. The Act has been drastically amended in &33' with a view to e#tending its protection to large number of persons and making the provisions of the Act more effective and beneficial. The e#isting wage limit for coverage of employees has been increased from 4s. $/33 to 4s. /'33 by the Amendment Act, 5$ 3f &33' with effect from %.$$.&33'. Again it has been enhanced from 4s. /'33 to 4s. $3333 per month vide 6.7. $03 89: dated 0.0.&332. The Amendment Act 5$ of &33' has adopted the process of insertion and substitution. The definition of (appropriate +overnment” has been inserted in 6ection & 8i: of the Act. The e#pression (appropriate +overnment” has been substituted for e#pressions (;entral +overnment” used earlier.
Objects of the Act and its application The Act is intended to regulate the payment of wages to certain classes of persons employed in industries and the ob-ect is to provide for a speedy and effective remedy to the employees in respect of their claims arising out of illegal deductions or un-ustified delay made in paying the wages to them. The act furnishes a summary remedy for wag es earned in an office and not paid, but it does not provide a remedy for investigation of fold? 1 A.C. Arumugham v. Manager Jawahar Mills Ltd., A..!. 1"#$ Mad %" & Arvind Mills Ltd., v. '.!. (adgil, A! 1")1 *om. &$
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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 unauthori=ed deductions from the wages.
A++LCAO- O /0 AC A- 2A32 43O .> The Payment of ages Act under its section $85: provides that it applies in the first instance to the payment of wages to persons employed in any factory, persons employed otherwise than in a factory upon any 4ailway by a railway administration or, either directly or through a sub> contractor, by a person fulfilling a contract with a railway administration@ and persons in an industrial or other establishment specified in sub>clauses 8a: to 8g: of clause 8ii: of 6ection &. The power is, however, vested in the appropriate +overnment now instead +overnment of 6tate to make provisions of the Act or any of them applicable after giving three months" notice of its intention of so doing by !otification in the 7fficial +a=ette to the payment of wages to any class of persons employed in any establishment or class of establishments specified by the appropriate +overnment under sub>clause 8h: of clause 8ii: of 6ection &. This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not e#ceed si# thousand five hundred rupees per month or such other higher sum which on, the basis of figures of the consumer 9#penditure 6urvey published by the !ational 6ample 6urvey 7rgani=ation, the ;entral +overnment may, after every five years, by notification in the 7fficial +a=ette, specify. !ow 4s. $3,333 8ten thousand: per month has been fi#ed increasing the earlier wage limit of 4s. /'33 keeping in view prices of the consumer commodities increasing day by day.