Compliance requirement under the Act

1. Responsibility for Payment of Wages in Delhi (Section 3)

1) Every employer shall be responsible for the payment of all wages required to be paid under this Act and following persons shall also be responsible for such payment:

a) manager, in case of a factory

b) person responsible for supervision and control, in case of industrial or other establishments

c) upon railways (other than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned

d) in the case of contractor, a person designated by such contractor who is directly under his charge; and

(e) in any other case, a person designated by the employer as a person responsible for complying with the provisions of the Act

2) The employer shall nevertheless be responsible to make payment of all wages required to be made under this Act in case the contractor or the person designated by the employer fails to make such payment.

2. Fixation of Wage Periods in Delhi (Section 4)

Every person responsible for payment of wages under Section 3 must fix periods for which such wages shall be payable, and no wage period shall exceed one month.

3. Time Period for Payment of Wages in Delhi (Section 5(1))

The wages of persons employed in a railway, factory, or establishment employing fewer than one thousand persons shall be paid before the expiry of the seventh day after the last day of the wage period. In the case of other railways, factories, or establishments, wages shall be paid before the expiry of the tenth day. For employees working on docks, wharfs, jetties, or in mines, the balance of wages due upon completion of the final tonnage account must be paid within seven days of completion.

4. Time Period for Payment of Wages in Case of Termination of Employment in Delhi (Section 5(2))

When employment is terminated by or on behalf of the employer, wages earned shall be paid before the expiry of the second working day from the date of termination. In case the termination arises due to the closure of the establishment, wages must also be paid within two days of termination.

5. Payment of Wages to be Made on a Working Day in Delhi (Section 5(4))

All wages must be paid on a working day, except in the case of termination of employment.

6. Wages to be Paid in Current Currency Notes, Coins, Cheque, or Crediting in Bank Account in Delhi (Section 6)

All wages shall be paid either in current coin, currency notes, by cheque, or by direct credit into the employee’s bank account.

7. Deductions Which May Be Made from Wages in Delhi (Section 7)

Wages must be paid without deduction, except for those authorized under the Payment of Wages Act. Every payment made by the employee to the employer or his agent shall be deemed a deduction from wages. However, withholding of increment or promotion, reduction to a lower post or scale, or suspension shall not be considered a deduction, provided such actions are taken under rules approved by the appropriate Government.

8. Total Amount of Deductions from Wages of an Employee During a Wage Period in Delhi (Section 7(3))

The total deductions in any wage period cannot exceed 75% of wages where deductions are for payments to cooperative societies, and 50% in other cases. Any excess deduction may be recovered in a prescribed manner. Employers are also entitled to recover dues payable by employees under other laws, excluding the Railways Act, 1989.

9. Imposition of Fines by Employer in Delhi (Section 8(1))

No fine can be imposed on an employee unless acts or omissions have been specified by the employer through notice, with prior approval of the appropriate Government or prescribed authority. The fine amount must not exceed prescribed limits, cannot be imposed on employees below 15 years of age, must be recovered within 90 days, and details must be maintained in a register.

10. Display of Notice Specifying Acts and Omissions in Delhi (Section 8(2))

A notice specifying the acts and omissions for which fines may be imposed must be displayed in the prescribed manner on the premises or, in case of railway employment, at the prescribed places.

11. Restriction on Imposing Fine in Delhi (Section 8(3))

No fine can be imposed unless the employee is given an opportunity to show cause, and the procedure prescribed for imposing fines has been followed.

12. Total Amount of Fine Which Can Be Imposed in Delhi (Section 8(4))

The total fine imposed in one wage period shall not exceed 3% of the wages payable for that period.

13. No Fine Shall Be Imposed on Employees Under the Age of Fifteen Years in Delhi (Section 8(5))

No fine can be imposed on an employee below the age of fifteen years.

14. Time Period for Recovery of Fine by Way of Instalments in Delhi (Section 8(6), (7))

Fines cannot be recovered by instalments or after ninety days from the date they were imposed. Every fine is deemed imposed on the day of the act or omission.

15. Register of Fines and Realisations in Delhi (Section 8(8))

All fines and their realizations must be recorded in a prescribed register and used only for purposes beneficial to employees, as approved by the prescribed authority.

16. Deductions for Absence from Duty in Delhi (Section 9)

Deductions for absence from duty are permissible when employees are absent from the workplace during required hours, even if present but refusing to work without reasonable cause (such as during a stay-in strike). The deduction must be proportionate to the period of absence. If ten or more employees absent themselves without due notice or reasonable cause, deductions up to eight days’ wages may be made in lieu of notice.

17. Deductions for Damage or Loss in Delhi (Section 10)

Deductions for damage or loss caused by employee neglect or default cannot exceed the actual loss. Employees must be given an opportunity to show cause before such deductions are made. All deductions and realizations must be recorded in the prescribed register.

18. Deductions for Amenity or Service Rendered by Employer in Delhi (Section 11)

Deductions for house accommodation, amenities, or services provided by the employer cannot be made unless accepted by the employee as part of employment. Such deductions must not exceed the value of the benefit provided and are subject to conditions imposed by the appropriate Government.

19. Deductions for Recovery of Advances in Delhi (Section 12)

Recovery of advances made before employment began shall be made from the first full wage payment, excluding advances for travel expenses. Advances given after employment began shall be subject to conditions imposed by the appropriate Government. Recovery of advances against unearned wages must follow rules framed by the Government regarding permissible amounts and instalments.

20. Maintenance of Registers and Records in Delhi (Section 13A (1))

Employers must maintain prescribed registers and records containing details of employees, work performed, wages paid, deductions made, receipts obtained, and other required particulars, in the prescribed form.