THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955

THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955

THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955 ............................. 4 1. Title. –............................................................................................................................................. 4 2. Definitions.- ................................................................................................................................... 4 Section 26 (3) (a)................................................................................................................................... 5 3. Register of fines.-.......................................................................................................................... 5 4. Register of deductions for damage or loss.-............................................................................. 5

5. Register of Wages. –..................................................................................................................... 5 6. Maintenance or registers. – ........................................................................................................ 5 Section 26 (3) (c)................................................................................................................................... 5 7. Weights and Measures. – ............................................................................................................ 5 Section 26 (3) (d)................................................................................................................................... 6 8. Notice of dates of payment. – .................................................................................................... 6

Section 26 (3) (e), (f) and (h) ............................................................................................................... 6 9. Prescribed authority. –................................................................................................................. 6 10. Application in respect of fines. – ................................................................................................ 6 11. Approval of list of acts and omissions. – ................................................................................... 6 12. Posting of list. –............................................................................................................................. 6 13. Persons authorised to impose fines. –....................................................................................... 6 14. Procedure in imposing fines and deductions. – ....................................................................... 7 15. Information to paymaster. –....................................................................................................... 7 Section 26 (3) (g)................................................................................................................................... 7 16. Deductions for breach of contract. –......................................................................................... 7 Section 26 (3) (i).................................................................................................................................... 8 17. Advances. –.................................................................................................................................... 8 Section 26 (3) (a)................................................................................................................................... 8 18. Annual Return – ............................................................................................................................ 8 Section 26 (3) (j).................................................................................................................................... 8 19. Costs. – ........................................................................................................................................... 8 20. Copies of documents. –................................................................................................................ 9 Section 26 (3) (k)................................................................................................................................... 9 21. Fees. –............................................................................................................................................. 9 Section 26 (3) (l).................................................................................................................................... 9 22. Abstracts. –.................................................................................................................................... 9 Section 26 (4)......................................................................................................................................... 9 23. Penalties. –..................................................................................................................................... 9 FORM I.................................................................................................................................................. 10 REGISTER OF FINES

............................................................................................................................. 10 FORM II................................................................................................................................................. 10

REGISTER OF DEDUCTIONS FOR DAMAGE OR LOSS CAUSED TO THE EMPLOYEE, BY THE  NEGLECT OR DEFAULT OF THE EMPLOYES PERSONS. ................................................................... 10

FORM III................................................................................................................................................

11 REGISTER OF ADVANCES MADE TP EMPLOYED PERSONS.

........................................................... 11 FORM IV ............................................................................................................................................... 12 WAGES AND DEDUCTIONS FROM WAGES...................................................................................... 12 FORM V ................................................................................................................................................ 13 ABSTRACT OF THE PAYMENT OF WAGES ACT, 1936, AND TILE RULES MADE THERE UNDER. 13 Whom the Act affects........................................................................................................................ 13 Definition of Wages............................................................................................................................ 13 Responsibility for and method of payment .................................................................................... 13 Fines and deductions ......................................................................................................................... 13 Inspections..........................................................................................................................................

. 15 Complaints of deductions or

delays................................................................................................. 15 Action by the Authority...................................................................................................................... 16 Appeal against the Authority ............................................................................................................ 16 Punishments for breaches of the Act. ............................................................................................. 16

THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955 OFFICE OF THE CHEILF COMMISSIONER ANDAMAN AND NICOBAR ISLANDS NOTIFICATION

Port Blair, the 19th January 1955

No, 15/55.—In exercise of the powers conferred by sub-sections(2), (3) and (4) of  section 26 of the Payment of Wages Act, 1936 (IV of 1936) read with the notification of the Government of India in the late Home Department .

No. 126/37-Public dated the 1st April 1937, the Chief Commissioner of the Andaman and Nicobar Islands

hereby makes the

following rules, the

same having been

previously

published as

required by

sub-section (5) of

the sub-section of

the said Act,

namely:--

THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955 1. Title. –

These rules may be called the Andaman and Nicobar Islands Payment of Wages Rules, 1955.

2. Definitions.-

In these rules, unless there is anything repugnant in the subject or

context, - (a) “the Act“ means the Payment of Wages Act, 1936 (IV of

1936);

(b) “the authority“ means the authority appointed under sub-section (1) of section 15 of the Act ;

(c) “the Chief Inspector of Factories“ means the Chief Inspector of Factories  appointed under sub- section (2) of section 8 of the Factories Act, 1948 (Central Act LXIII of 1948)

(d) “ the Court“ means the court mentioned in sub-section (1) of section 17 of the  Act ;

(e) “deduction for breach of contract“ means a deduction made in accordance with the provisions of the proviso to sub-section (2) of section 9;

(f) “deduction for damage or loss” means a deduction made in accordance with the provisions of clause (c) of sub-section (2) of section 7;

(g) “Form” means a form appended to these rules ;

(h) “Inspector” means an Inspector authorised by or under section 14 of the Act ;

(i) “person employed” excludes all persons to the payment of whose wages the Act does not apply;  

(j) ”section” means a section of the Act ;

(k) “Paymaster” means an employer or other person responsible under section 3 of the Act for the payment of wages ;

Section 26 (3) (a)

3. Register of fines.-

(1) In any factory in respect of which the employer has obtained approval under  sub-section (1) of section 8 to a list of acts and omissions in respect of which  fines may be imposed, the paymaster shall maintain a Register of Fines in Form I.

(2) At the beginning of the Register of Fines there shall be entered serially numbered the approved purpose or purposes on which the fines realised are to be expended  

(3) When any disbursements are made from the fines realised, a deduct-entry of the amount so expended shall be made in the Register of Fines and a vouchers or receipts in

respect of the

amounts shall

be affixed to

the register If

more than one

purpose has been approved, the entry of the disbursement shall also indicate the purpose for which it is made.

4. Register of deductions for damage or loss.-

In every factory in which deductions for damage or loss are made, the paymaster  shall maintain the Register required by sub-section (2) of section 10 in Form II.

5. Register of Wages. –

A Register of Wages shall be maintained in every factory and may kept in such form as the paymaster finds convenient but shall include the following particulars, namely :-

(a) the gross wages earned by each person employed for each wage-period ;

(b) all deductions made from these wages, with an indication in each case of the  clause of sub-section (2) of section 7 under which the deduction is made ; and

(c) the wages actually paid to each person employed for each wage-period ; 6. Maintenance or registers. –

The registers referred to in rules 3, 4, 5 and 17 shall be preserved for twelve months  after the date of the last entry made in them.

Section 26 (3) (c)

7. Weights and Measures. –

(1) All Weights measures or weighing machines which are used in checking or  ascertaining the wages of persons employed in any factory shall be examined at least biennially by an Inspector who may prohibit the use of any weight,  measure, or weighing machine which he finds to register incorrectly.

(2) If the Inspector considers that any action should be taken under the Indian  Weights and Measures of Capacity Act (XXXI of 1871) or the Indian Penal Code (XLV of 1860), he may seize the article in question and record his opinion and  send it to the District Magistrate for such action as he may think fit.

Section 26 (3) (d)

8. Notice of dates of payment. –

The Paymaster shall display in a conspicuous placement at or near the main entrance of the factory, a notice, in English and also in the language of the majority of the persons employed therein, giving for not less than two months in advance, the days on which wages will ordinarily be paid.

Section 26 (3) (e), (f) and (h)

9. Prescribed authority. –

The Chief Inspector of Factories shall be the authority competent to approve under  sub-section (1) of section 8, acts and omissions in respect of which fines may be  imposed

under

sub-section (8) of section 8, the purposes to which the proceeds of the fines shall be expended

10. Application in respect of fines. –

Every paymaster requiring the power to impose fines in respect of any acts and  omissions on the part of employed persons shall send to the Chief Inspector of  Factories –

(a) a list in English, in duplicate, clearly defining such acts and omissions ; and

(b) in cases where the employer himself does not intend to be the sole person  empowered to impose fines, a list in duplicate, showing those appointments in his factory of which the incumbents may pass orders imposing fines and the class of establishments on which the incumbent of each such appointment may impose fine.

11. Approval of list of acts and omissions. –

The Chief Inspector of Factories on receipt of the list prescribed in sub-rule (a) of  Rule 10 , may after such enquiry as he consider necessary, pass orders either –

(a) disapproving the list, or

(b) approving the list either in its original form or as amended by him, in which case such list shall be considered to be an approved list:

Provided that no order disapproving or amending any list shall be passed unless the employer shall have been given an opportunity of showing cause orally or in writing why the list as submitted by him should be approved.

12. Posting of list. –

The employer shall display at or near the main entrance of the factory, a copy in  English, together with a literal translation thereof, in the language of the majority of  the persons employed therein, and in Hindi, of the list approved under rule 11.

13. Persons authorised to impose fines. –

No fine may be imposed by any person other than an employer or a person holding  an appointment named in a list submitted under rule 10.

14. Procedure in imposing fines and deductions. –

Any person desiring to impose a fine on an employed person or to make a deduction for damage or loss shall explain personally to the said person the act or omission, or damage or loss, in respect of which the fine or deduction, is proposed to be imposed,

and the amount of the fine or deduction, which it is proposed to impose and shall hear his explanation in the presence of atleast one other person.

15. Information to paymaster. –

The person imposing a fine or directing the making of a deduction for damage or loss shall at once inform the paymaster of all particulars, so that the register prescribed in rule 3 or rule 4 may be duly completed.

Section 26 (3) (g)

16. Deductions for breach of contract. –

(1) No deduction for breach of contract shall be made from the wages of an  employed person who is under the age of fifteen years or is a woman.

(2) No deduction for breach of contract shall be made from the wages of any  employed person unless:-

(a) there is provision in writing forming part of the terms of the contract of  employment requiring the employee to give notice of the termination of  his employment and -

(i) the period of this notice does not exceed fifteen days or the wage  

period, whichever is less; and

(ii) the period of this notice does not exceed the period of notice which

the employer is required to give of the termination of that  

employment;

(b) this rule has been displayed in English and Hindi and also in the language of the majority of the employed persons at or near the main entrance of the factory, and has been so displayed for not less than one month

before the commencement of the absence in respect of which the

deduction is made; and

(c) a notice has been displayed at or near the main entrance of the factory  giving the name of the persons from whose the deduction is proposed to be made, the number of days’ wages to be deducted and the conditions (if any), on which the deduction will be remitted:

Provided that where the deduction is proposed to be made from all the  persons employed in any departments or sections of the factory, it shall  be sufficient, in lieu of giving the names of the persons in such  departments or sections, to specify the departments or sections affected.

(3) No deduction for breach of contract shall exceed the wages of the person  employed for the period by which the notice of termination of service given falls short of the period of such notice required by the contract of employment.

(4) If any conditions have been specified in the notice displayed under clause (c) of sub-rule (2), no deduction for breach of contract shall be made from the wages of any person who has compiled with those conditions.

Section 26 (3) (i)

17. Advances. –

(1) An advance of wages not already earned shall not, without the previous  permission of an Inspector, exceed an amount equivalent to the wages earned  by the employed person during the preceding two calendar months, or if he  has not been employed for that period, twice the wages he is likely to earn  during the subsequent calendar month.

(2) The

advance may

be recovered in

instalments by

deduction from

wages, spread

over not more

than twelve

months. No

installment

shall exceed

one third, or

where the

wages for any

wage-period

are not more

than twenty

rupees,

one-fourth of

the wages for

the

wage-period in respect of which the deduction is made.

(3) The amounts of all advances, sanctioned and the repayments thereof shall be  entered in a register in Form III.

Section 26 (3) (a)

18. Annual Return –

In respect of every factory in which during the calendar year any fines have been  imposed or any deductions for breach of contract or for damage or loss have been  made from wages a return shall be sent in Form IV so as to reach the Chief Inspector of Factories not later than the 15th of February following the end of the calendar year to which it relates.

Section 26 (3) (j)

19. Costs. –

(1) Where the Authority or the Court as the case may be, directs that any costs shall not follow the event it shall state its reasons for so doing writing.

(2) The costs which may be awarded shall include –

(a) the charges necessarily incurred on account of court-fees;

(b) the charges necessarily incurred on subsistence money to witnesses ; and

(c) Pleader’s fees which shall ordinarily be Rs.10, if any pleader has been  engaged;

Provided that the Authority or the Court, as the case may be, may in any  proceedings may reduce such fee to a sum not less than Rs.5 or increase  it to a sum not exceeding Rs.30.

(3) When a party engages more pleaders than one to defend a case, he shall be  allowed one set of costs only.

20. Copies of documents. –

The Authority or the Court, as the case may be, may fix the fees on the payment of  which any person entitled to do so may obtain copies of any document filed with the Authority or Court as the case may be:

Provided that the Authority or the Court as the case may, in consideration of the  poverty of the applicant, grant copies free of cost.

Section 26 (3) (k)

21. Fees. –

The fee payable in respect of proceedings under the Act shall be as follows:-

(i) For every

application to

summon a

witness – Four

annas in

respect of each  

witness.

(ii) For every other application made by or on behalf of an individual person before the Authority – Eight annas.  

(iii) For every other application made by or on behalf of an unpaid group before the Authority – Four annas for each member of the group, subject to a maximum of five rupees.

(iv) For every appeal lodged with the court – Five rupees.

Provided that the Authority or the Court as the case may be, may, in  

consideration of the poverty of the applicant, reduce or remit this fee:

Provided further that no fee shall be chargeable in respect of an application  presented by an Inspector.

Section 26 (3) (l)

22. Abstracts. –

The abstract of the Act and of the rules made thereunder to displayed under section  25 shall be in Form V, translations whereof in Hindi and in the language of the  majority of the employed persons, shall also be displayed.

Section 26 (4)

23. Penalties. –

Any breach of rules 3, 4, 5, 6, 8, 12, 15 or 18 of these rules shall be punishable with  fine which may extend to two hundred rupees.

FORM I

(RULE 3 OF THE ANDAMAN AND NICOBAR ISLANDS PAYMENT OF WAGES RULES, 1955) REGISTER OF FINES

………………Factory……………….

FORM II

(RULE 4 OF THE ANDAMAN AND NICOBAR ISLANFS PAYMENT OF WAGES RULES, 1955).

REGISTER OF DEDUCTIONS FOR DAMAGE OR LOSS CAUSED TO THE EMPLOYEE, BY THE  NEGLECT OR DEFAULT OF THE EMPLOYES PERSONS.

…………..Factory…………………..

FORM III

[RULE 17 (3) OF THE ANDAMAN AND

NICOBAR ISLANFS PAYMENT OF WAGES

RULES, 1955]. REGISTER OF ADVANCES

MADE TP EMPLOYED PERSONS.

………Factory………….

FORM IV

[RULE 18 OF THE ANDAMAN AND NICOBAR ISLANFS PAYMENT OF WAGES RULES, 1955]. Return for the year ending 31st December, 19………..

WAGES AND DEDUCTIONS FROM WAGES

1.

(a) Name of the Factory or establishment and Postal address

(b) Industry

2. Number of days worked during the year

3.

(a)

*Average daily number of persons employed during the year –

Adult …………. Children ……………..

(b) Gross amount paid as remuneration to these persons including deductions under section 7 (2) …………. Of which the amount due to bonus is ……………. And that due money value of concessions is ………………

4. Total wages paid including deductions under section 7(2) on the following  accounts:-

(a) Basic wages including overtime

(b) Dearness and other allowance in cash

(c) Arrears of pay in respect of previous year paid during the year

5. No. of cases and amount realized as - NO. OF CASES AMOUNT (a)

Fines (b) Deductions for damage or loss

(c) Deductions for breach of contract

6. Disbursement from the fine fund. PURPOSE AMOUNT

(a)

(b)

(c)

(d)

7. Balance of fines in hand at the end of the year………….

Signature.............................. Designation...........................

* The average daily number of persons is obtained by dividing the aggregate  number of attendances during the year by the number of working days. FORM V

ABSTRACT OF THE PAYMENT OF WAGES ACT, 1936, AND TILE RULES MADE THERE UNDER Whom the Act affects

1. The Act applies to the payment of wages to persons in the factory receiving less than Rs 200 a month.

2. No employed person can give up by contract, or agreement, his rights under the Act.

Definition of Wages.

3. “Wages”

means all

remuneration

payable to an

employed

person on the fulfilment of his contract of employment.

It includes bonus and any sum payable for want of a proper notice od  

discharge.

It excludes. ----

(a) The value of house accommodation, supply of light water, medical  attendance or other amenity or of any service excluded by the Central  Government or the Chief Commissioner of the Andaman and Nicobar  Islands;

(b) The employer’s contribution to a Pension or Provident Fund;

(c) Travelling allowance or concession or other special expenses entailed by the employment; and

(d) Any gratuity payable on discharge.

Responsibility for and method of payment

4. The manager of the factory is responsible for the payment under the Act of wages to persons employed under him and any contractor employing persons is responsible for payment to the persons he employs.

5. Wage-Periods shall be fixed for the payment of wages at intervals not exceeding one month.

6. Wages shall be paid on a working day within 7 days of the end of the wage period (or within 10 days if 1,000 or more persons are employed).

7. The Wages of a person discharged shall be paid not later than the second working day after his discharge.

8. Payments in kind are prohibited.

Fines and deductions

9. No deductions shall be made from wages except those authorised under the Act (see paragraph0-15 below).

10.

(1) Fines can be imposed only for such acts and omissions as the employer may, with the previous approval of the Chief Inspector of Factories, specify by a notice displayed at or near the main entrance of the factory and after giving the employed person an opportunity for explanation.

(2) Fines.—

(a) Shall not exceed half-an-anna in the rupee;

(b) shall not be recovered by instalments or later than sixty days of the date of imposition;

(c) shall be recorded in a register, and applied to such purposes  

beneficial to the employed

persons as are approved by the Chief Inspector of Factories; and

(d) shall not be imposed on a child.

11.

(a) Deductions for absence from duty can be made only on account of the  absence of the employed person at times. When he should be working,  and such deductions must not exceed an amount which is in same

proportion to his wages for the wage-period, as the time he was absent in that period is to the total time he should have been at work.

(b) If ten or more employed persons, acting in concert, absent themselves  without reasonable cause and without due notice, the deduction for absence can include wages for eight days in lieu of notice, but—

(1) no deduction for breaking a contract can be made from a person under 15 years of age or a woman;

(2) there must be a provision in writing which forms part of the contract of employment, requiring that a specific period of notice of intention to cause work not exceeding 15 days or the period of  notice which the employer has to give to discharge a worker, must  

be given to the employer, and that wages may be deducted in lieu  of such notice;

(3) the above provision must be displayed at or near the main entrance of the factory;

(4) no deduction of this nature can be made until a notice that this  deduction is to be made has been posted at or near the main  entrance of the factory;

(5) no deduction must exceed the wages of the employed person for the period by which the notice be gives of leaving employment is less than the notice be should give under his contract.

12. Deductions can be made for damage to or loss of goods expressly entrusted to an employed person or for loss of money for which he is required to account,  where such damage or loss is due to his neglect or default.

Such deductions cannot exceed the amount of the damage or loss caused and  can be made only after giving the employed person an opportunity for  explanation.

13. Deductions can be made, equivalent to the value thereof, for house  accommodation and amenities or services (other than tools and raw material)  supplied by the employer, provide these are accepted by the employed person as a part of the terms of his employment and have in the case of amenities and services been authorized by order of Government.

14.

(a) Deduction can be made for the recovery of advances, or for

adjustment of overpayment of wages.

(b) Advance made

before the

employment began

can only be

recovered from the

first payment of

wages for a complete

wage-period but no  

recovery can be

made of advances

given for travelling

expenses before  

employment began;

(c) Advances of

unearned wages can

be made at the

paymaster’s

discretion during

employment but

must not exceed the

amount of two

months’ wages without the permission of an Inspector.

These advances can be recovered by instalments spread over not more  than 12 months and the instalments must not exceed and or if the wages are not more than Rs.20 of the wages for any wage-period.

15. Deductions can be made for subscription to and for repayment of advance from any recognised Provident fund.

16. Deductions can be made for payments to Co-operative Societies approved by the Chief Commissioner of the Andaman and Nicobar Island or to the Postal  Insurance, subject to any conditions imposed by the said Chief Commissioner.

Inspections.

17. An Inspector can enter on any premises, and own exercise powers of inspection (including examination of documents and taking of evidence) as he may deem necessary for carrying out the purposes of the Act.

Complaints of deductions or delays.

18.

(1) Where irregular deductions are made from wages or delays in payment take place, an employed person can make an application in the prescribed form within 6 months to the Authority appointed by the Chief Commissioner of the Andaman and Nicobar Islands for the purpose. An application delayed beyond this period may be rejected unless sufficient cause for the delay is shown.

(2) Any legal practitioner, official of a registered trade union, Inspector under the Act, or other person acting with the permission of the Authority can make the complaint on behalf of an employed person.

(3) A single application may be presented by, or on behalf of, nay number of persons belonging to the same factory, the payment of whose wages has been delayed.

Action by the Authority

19. The Authority may award compensation to the employed person in addition to ordering the payment of delayed wages or the refund of illegal deductions.

If a malicious or vexatious complaint is made, the Authority may impose a  penalty not exceeding Rs.50/- on the applicant and order that it be paid to the  employer.

Appeal against the Authority

20. An appeal

in the

prescribed

form against a

direction made

by the

Authority may

be preferred

within 30 days

to the District

Court—

(a) By the

paymasters if

the total

amount

directed to be

paid exceeds  

Rs.300;

(b) By an

employed

person, if the

total amount of wages withheld from him or his co-workers, exceeds Rs.50; and  

(c) By a person directed to pay a penalty for a malicious or vexatious  application.

Punishments for breaches of the Act.

21. Anyone delaying the payment of wages beyond the due date, or making any un authorised deduction from wages is liable to a fine upto Rs. 500, but only if  prosecuted with the sanction of the Authority or the appellate court.

22. The paymaster who—

(1) does not fix a wage-period, or

(2) makes payment in kind, or

(3) fails to display at or near the main entrance of the factory this Abstract in English and Hindi and also in the language of the majority of the  

employed person, or

(4) breaks certain rules made under the Act, is liable to a fine not exceeding  Rs.200.

A complaint to this effect can be made only by the Inspector, or with his sanction. S.N. MAITRA Chief Commissioner A & N Islands.