Payment of wages act.

Sandip Gawde (Querist) 21 August 2012 This query is : Resolved
Hello !!!!!!!

can you tell me please if any registered establishment having less than 1000 employees unable to process salary on or before 7th what would be the consequences / offenses as per law.

What the possible steps employee can take under act.

what steps need to employeer take under this act.

please revert.

Thanks
Sandip Gawade
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Kirti Kar Tripathi (Expert) 21 August 2012
Section 20(6) of payment of Wages Act deals with this situation.

(6) If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf he shall without prejudice to any other action that may be taken against him be punishable with an additional fine which may extend to one hundred rupees for each day for which such failure or neglect continues.

Sandip Gawde (Querist) 21 August 2012
Thank you sir,

but as per minimum wages act 1936,co.has to pay on or before 7th if 1000 or less employee is working.

& if co.fails to pay if co.'s financial position is not good or paucity of fund.what the employer need to take action. Is employer need to display notice on co.notice board mentioning Paucity of fund & 1 copy to Commissioner under this Act.

Kirti Kar Tripathi (Expert) 21 August 2012
Time limit for paying wages is prescribed only in Payment of wages. Act. In case, the company fails to make payment in time, it will fall within the scope of delayed payment, for which the company is liable to pay compensation under the Act upto Rs. 2000/- per employee. Similarly company fail to make payment of minimum wages to its employee and same is paid during the pendency of the case i.e. before final order is passed the liability of compensation is maximum Rs. 10 /- per employee. But for violation a penality up to Rs. 500/- can be imposed.

Kirti Kar Tripathi (Expert) 22 August 2012
To deal with this type of situation, the best solution is to go for settlement with workmen or union of workmen

Guest (Expert) 22 August 2012
Not a problem, but it seems to be a hypothetical academic query, as you have asked for the possible steps on behalf of both the employees and employer.

Sandip Gawde (Querist) 22 August 2012
Thank u very much for your prompt suggessions

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