Objectives, application and scope of payment of wages act 1936

by • 17/01/2013 • GeneralComments (0)432

Q-1:     Explain the objectives, application and scope of payment of wages act 1936.


The objectives of the Act, application, definitions, rules as to time of payment of wages, permissible deductions from wages, conditions as to when and how deductions can be made, deduction for absence from duty, deduction for damage or loss, deduction for service rendered, deduction for recovery of advances or for adjustment of overpayment of wages and statutory provisions for the prevention and recovery of wrongful deduction by the employer.



This Act has been seen in all industrial laws that they have been framed for saving the poor employees from the hardships, which can be created by the highhandedness of the employers. Leaving aside all other things this can easily be imagined that if the employers are given an opportunity to make the payment of wages at a time which may suit them, it will cause hardship to :he employees who need money to meet their daily expenses as the daily needs can not be postponed for long. They can not manage to purchase the goods of their daily needs even on credit when the period after which they will receive their wages is not definite. Besides the employers had free choice to deduct any amount from the wages of the employees on one or the other pretext. The deductions, which were made, were for the benefit of the employers themselves. These hardships of the employees drew the attention of the Government of the day and this Act came into being. Its study will show that it has regularized the payment of wages at a proper time and has stopped the employers from making deductions of their own choice. Deductions are no doubt allowed by this Act but they are the deductions, which are justified in every respect, and nobody can raise any objection against them. The payment of wages at a fixed time helps the employees adjust their needs accordingly and thus they are Saved from any hardship. In case any employer makes a deduction from the wages of an employee, which is not authorized by this Act an easy and simple method, has been provided whereby the money up to the extent often times the money deducted. Above all this the deduction for fine imposed does not go into the pocket of the employer but is to be spent upon the welfare of the employees themselves.

The objectives of the promulgation of the Payment of Wages Act can be easily analyzed 4 om what has been stated in foregoing paragraphs.



This Act is applicable throughoutPakistan. It applies io the payment of wages of persons employed in any factory and to persons employed in the railway by a ‘railway administration either directly or through a contractor* Besides this it is open to the Provincial Government that it may make this Act applicable to any class of persons employed in an industrial establishment after giving a three months notice showing this intention by a notification in the official Gazette. This Act will not apply in the case of employees who get monthly wages exceeding one thousand five hundred rupees per month.



Industrial Establishment [Sec. 2(II)]

Industrial establishment means any:

(a)        Tramway or motor omnibus service.                         (b)        Dock, wharf or jetty

(c)        Inland steam vessel,                                       (d)        Mine, quarry or oil field,           (e)Plantation

(f)         Workshop or other establishment, in which articles are produced, adapted or manufactured for the purpose of their use in transport or sale,

(g)        Establishment of a contractor who directly or indirectly employees persons to do skilled or unskilled, manual or clerical work for wages in connection with the execution of the contract.



Wage [Sec. 2(vi)]

Wages mean all remuneration capable of being expressed interns of money which would if the terms of contract of employment express or implied, were fulfilled, be payable whether conditionally upon the regular attendance good work or conduct or other behavior of the person employed or otherwise to a person employed in respect of his employment and includes any bonus or other additional remuneration of the nature aforesaid which would be so payable to such person by the reason of the termination of his employment but does not include:

(a)        Any bonus       (b)        Any additional remuneration

(c)        Any sum payable by reason of the termination of employment.


Wages does not Include

(a)        The value of any house, supply of light water, medical attendance or other amenity, or any service excluded by special or general order of the Provincial Government.

(b)        Any contribution paid by th4 employer towards any pension, fund or provident fund,

(c)        Any traveling allowances or the value of travelling concession,

(d)        Any sum paid to the person employed to defray special expenses entitled on him by the nature of his employment, and

(e)        Any gratuity payable on discharge.


PAYMENT OF WAGES [Sec. 3, 4, 5 & 6]

(a)        Responsibility for payment [See. 3]

The following persons shall be responsible for payment of wages to persons employed by them:

(a)        Every employer or contractor             (b)        Manager of a factory

(c)        Person responsible for supervision and control of industrial establishment

(d)        Person nominated by railway administration for local area.


(b)       Wages period [Sec. 4]

Every person responsible for payment of wages shall fix wage periods in respect of which wages shall be payable. No wage period shall exceed one month.


(c)        Time of payment [Sec. 5]

(1)        The wages shall be paid after the last day of the wage-period in respect of which the wages are payable as follows:

(a)        Before the expiry of seventh day when less than 1000 persons are employed

(b)        Before the expiry of tenth day in any other case.

(2)        Where employment of a person is terminated, wages earned shall be paid before the expiry of the second working day from the day of termination.

(3)        All payments of wages shall be made on a working day.       *


(d)       Payment In cash [Sec. 6]

All wages shall be paid in current coin or currency notes or in both.

S goodness and sincerity did not more hints here save her
Pin It

Leave a Reply