When employer start a factory then he provides a various facility to workers under factory act 1948, employee state insurance act 1948, employees provident act 1952, workmen compensation act 1923, minimum wages act 1936, industrial disputes act 1947, payment of wages act 1948. State and central government have made several act related to small scale industry because its main aim to provide best facility to their workers.
Payment of wages act 1948.
- Fixation of wage period
- Time of Payment
- Medium of payment
- Deduction of payment
- Rules of imposed fine
- Late payment of wages
Fixation of wage period: The main object is that to secure payment of wages to workers at regular time.
Time of Payment: Two ways of payment:
When employee is less than 1000: When employee is less than 1000 than payment of wage period before the expiry of the seventh day after the last date of the wage period.
Other cases: in other cases, payment of wages before the expiry of 10th day after the last date of the wage period.
Medium of payment: payment can be made to the employee either in cash or cheque or notes or coins.
Deduction of payment: when any payment to the employee then following deduction can be made:
Medium of payment: payment can be made to the employee either in cash or cheque or notes or coins.
Deduction of payment: when any payment to the employee then following deduction can be made:
- Fines
- Absent during working hours
- Any type of loss occurred
- Provide house, water, electricity facility
- Tax deduction
All these deduction is in a prescribed limit which is fixed either by the government or depends upon the organization.
Deduction of payment = (salary- fines- tax- absence- provide house rent accommodation- losses incurred)
Rules of imposed fine:
- Fine should not more than 3% which is set by the government.
- Fines are not imposed to that person whose age is less than 15 years
- Proper record is maintained who pay the fine.
Late payment of wages:
