Compliance requirement under the Rules in accordance with the Act

1. Notice of dates of payment in UP (Section 26 (3) (d), Rule 8)

Paymaster to display, in a conspicuous place at or near the main entrance of the factory/industrial establishment, a notice in English and in the language of the majority of the persons employed therein, specifying for one month in advance, the wage-period and the date/dates on which wages are to be paid. An employed person who is absent on any such day shall be paid his wages on any working day before the expiry of the third working day after the day on which a demand is made by him for the same.

2. Application in respect of fines in UP (Rule 10)

A list is to be sent to the Chief Inspector of Factories in Uttar Pradesh to obtain the power to impose fines in respect of acts and omissions by employed persons, intimating the required details. Where the employer does not intend to be the sole person empowered to impose fines, a list in duplicate must be submitted showing those appointed in the establishment who may impose fines, along with the class of establishment in respect of which such power may be exercised.

3. Display of list of approved acts or omissions in UP (Rule 12)

The employer shall display at or near the main entrance of the factory or industrial establishment a copy in English together with a literal translation thereof, in the language of the majority of persons employed therein, of the approved list of acts or omissions.

4. Persons authorised to impose fines in UP (Rule 13)

No fine shall be imposed by any person other than an employer, or a person appointed by the employer in accordance with the approved list of acts and omissions.

5. Procedure to impose fines and deduction in UP (Rule 14, Rule 15)
   The act, omission, damage, or loss for which a fine is proposed must be explained to the concerned employee, either orally in the presence of at least one other person or in writing. The employer shall hear any explanation offered by the employee. The person imposing a fine or ordering a deduction must at once inform the paymaster of all particulars so that the prescribed register may be duly completed.
6. Deduction for breach of contract from wages of employed person in UP (Section 26 (3) (g), Rule 16(2), (3), (4))

No deduction for breach of contract shall be made from wages of a woman or a person under the age of 15 years. There must be a provision in the contract of employment requiring the employee to give specified notice before termination. The notice period shall not exceed 15 days or the wage period, whichever is less, and shall not exceed the notice period required of the employer. Notices must be displayed at or near the main entrance giving details of the proposed deductions, names of employees concerned, and conditions for remission. No deduction shall exceed the wages for the period by which notice falls short.

7. Limit over Advances of wages in UP (Section 26 (3) (j), Rule 17)
   Advance of wages shall not exceed an amount equivalent to twice the wages earned during the preceding two months, or twice the wages likely to be earned if not previously employed. Recovery shall be made in instalments over not more than twelve months, and no instalment shall exceed one-third of wages for the period, or one-fourth if wages are not more than twenty rupees.
8. Form III: Register of Advances in UP (Section 26 (3) (j), Rule 18(3))
   The amount of advances sanctioned and their repayments must be entered in a register maintained in Form III.
9. Form I: Register of Fines in UP (Section 26 (3)(a), Rule 3)
   In any factory or industrial establishment where the employer has obtained approval of acts and omissions for which fines may be imposed, the paymaster shall maintain a Register of Fines in Form I.
10. Form II: Register of deductions for damage or loss in UP (Section 10(2), Rule 4)
    In every factory or industrial establishment where deductions for damage or loss are made, the paymaster shall maintain the Register of Deductions for Damage or Loss in Form II.
11. Register of Wages in UP (Rule 5)

In every factory or industrial establishment, the paymaster shall maintain a Register of Wages in a convenient form containing the prescribed particulars.

12. Maintenance of Registers in UP (Rule 6)

The Register of Fines, Register of Deductions for Damage or Loss, Register of Wages, and Register of Advances must be preserved for twelve months after the date of the last entry made in them.

13. Form IV: Annual Return under Payment of Wages Rules in UP (Section 26 (3)(a), Rule 18)

Every factory and industrial establishment must send an annual return in Form IV to the Chief Inspector of Factories so as to reach not later than the 15th of February following the end of the calendar year to which it relates.

14. Form V: Display of abstracts of the Act and Rules in UP (Section 26 (3)(1), Rule 22)
    The abstracts of the Act and the Rules made thereunder shall be displayed in Form V.
15. Form VI: Display of wage rates in UP (Rule 6-B)
    A notice in Form VI must be displayed in a conspicuous place at or near the entrance of each department, specifying the rates of wages payable to workers other than those in supervisory or managerial positions. The notice shall be in English, Hindi, and Urdu. Whenever wage rates are revised or new work classes are introduced, the paymaster shall update and date the notice. The notice must be preserved for six months after replacement and made available to the Factory Inspector on demand.
16. Responsibility for payment of wages in UP (Section 3)
    The employer, manager, or other designated responsible person shall be responsible for making payment of wages under the Act if the contractor or designated person fails. In factories, the manager is responsible; in other establishments, the person in charge of supervision; on railways, the nominated person by the railway administration; and in case of contractors, the person designated by such contractor. The employer remains responsible if such persons fail to pay.

Following persons shall be responsible for such payment:

• • manager, in case of a factory

• • person responsible for supervision and control, in case of industrial or other establishments
  • 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
  • in the case of contractor, a person designated by such contractor who is directly under his charge; and

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

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.

17. Fixation of wage-periods in UP (Section 4)
    Every person responsible for payment of wages shall fix wage periods, and no wage-period shall exceed one month.
18. Time period for payment of wages in UP (Section 5(1))
    Wages shall be paid before expiry of:

a) the 7th day after the wage period, where fewer than 1,000 persons are employed;
b) the 10th day after the wage period, where 1,000 or more persons are employed. In case of dock, wharf, jetty, or mine workers, final dues must be paid within seven days of completion of final tonnage account.

19. Time period for payment of wages in case of termination of employment in UP
    (Section 5(2))

Where employment of a person is terminated, the earned wages must be paid before the expiry of the second working day from the day on which employment is terminated. In case of closure of establishment, the wages must also be paid within two days.

20. Payment of wages to be made on a working day in UP (Section 5(4))
    All payments of wages shall be made on a working day, except in cases of termination of employment.
21. Mode of payment of wages in UP (Section 6)

Employers shall pay wages through bank cheque, NEFT, or ECS into the employee’s bank account. For employees on temporary, casual, or fixed-term work, upon written request with Aadhaar copy, cash payment of wages not exceeding ₹5,000/- during a three-month period may be made.

22. Deductions which may be made from wages in UP (Section 7)
    Wages must be paid without deductions except those authorised under the Act. Deductions include those specified under Section 7(2). Any payment by the employee to the employer is deemed a deduction. Loss of wages due to withholding increments, reduction in post or scale, or suspension shall not be deemed deductions if imposed in accordance with Government-approved rules.
23. Total amount of deductions from wages of an employee during a wage period in UP
    (Section 7(3))

The total deductions shall not exceed:

(i) 70% of wages, if deductions are for payments to co-operative societies;
(ii) 50% of wages in any other case. Where deductions exceed these limits, the excess may be recovered as prescribed.

24. Deductions for absence of duty in UP (Section 9)

Deductions may be made only for absence from the workplace or for refusal to work. Deductions shall be proportionate to the period of absence. If ten or more employees absent themselves in concert without due notice or reasonable cause, deductions may include wages for up to eight days in lieu of due notice. Presence but refusal to work (e.g., stay-in strikes) is also deemed absence.

25. Deductions for amenity or service rendered by employer in UP (Section 11)
    Deductions for house accommodation or other amenities provided by the employer shall not be made unless accepted by the employee as part of employment terms. Such deductions shall not exceed the value of the accommodation or amenity and are subject to conditions imposed by the appropriate Government.