Jammu and Kashmir Payment of Wages Rules, 1972

Background

The Jammu and Kashmir Payment of Wages Rules, 1972 were framed under the Payment of Wages Act, 1936 to ensure timely and fair payment of wages to workers employed in factories and industrial establishments across the state. These rules lay down detailed procedures for wage periods, permissible deductions, fines, registers, and mandatory displays to protect employees from arbitrary practices. By specifying formats of registers, returns, and notices, the rules promote accountability, transparency, and compliance with the Act.

Applicability

These rules apply to:

  • The payment of wages to persons employed in any factory, to persons employed otherwise than in a factory upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of section 2 of the Payment of Wages Act, 1936.
  • Wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed twenty four thousand rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.

Compliances under the Rule in Accordance with the Act

  1. Form XI: Register of attendance in J&K (Rule 3)

In every factory and industrial establishment, the employer shall maintain a register of attendance for employed persons in Form XI and shall mark the attendance within one hour after the start of the work in the establishment. The register shall be preserved for 3 years.

  1. Form I: Register of fines in J&K (Section 8(8) Rule 4)
    Every factory or industrial establishment, where the employer has obtained approval under Section 8(1) to a list of acts and omissions in respect of which fines may be imposed, shall maintain a Register of Fines in Form I. The register shall mention the approved purposes for which fines realised are to be expended and vouchers/receipts of disbursement shall be produced to the Inspector on demand.
  2. Form I: Register of deductions for damage or loss in J&K (Rule 5)

In every factory or industrial establishment where deductions for damages or loss are made, the paymaster shall maintain a register in Form I as required under Section 10(2).

  1. Form II: Register of Wages in J&K (Rule 6)

A register of wages shall be maintained in Form II in every factory or industrial establishment. It shall contain:

(a) gross wages earned by each employee;

(b) all deductions made with indication of the relevant clause of Section 7(2);

(c) wages actually paid for each wage period.

  1. Wage Book and Wage Slip in Form VIII in J&K (Rule 7)
    Every employed person shall be provided with a Wage Book and Wage Slip in Form VIII. These shall contain particulars such as rate of wages, nature of work, days worked, wages payable, deductions made, and wages actually paid. They must be preserved for 12 months from the date of last entry.
  2. Notice displaying the name and address of the Inspector in J&K (Rule 10)
    The employer shall display at the main entrance or a conspicuous place in the establishment a notice showing the name and complete address of the Inspector having jurisdiction.

  3. Form VI: Display of wage rates in J&K (Rule 11)

A notice in Form VI (in Hindi) shall be displayed conspicuously at or near the entrance of each department, specifying the wage rates payable to workers (other than supervisory/managerial staff). Alterations must be dated and preserved for 1 year, and the notice must be available to Inspectors on demand.

  1. Form IX: Notice of opening and closing of factory or establishment in J&K (Rule 12)
    The employer shall communicate to the Inspector in Form IX the actual date of opening of the factory/establishment. Similarly, in case of closure or discontinuance of work, the employer shall forthwith inform the Inspector in Form IX.
  2. Form IX: Changes in details of factory or establishment in J&K (Rule 12)
    When any change occurs in the name, location, or address of a factory/establishment, the employer shall forthwith communicate such change to the Inspector in Form IX.

  3. Form II: Measurement of amount of work done by employed persons in J&K (Rule 14)
    For piece-rate work, the employer shall record weighment/measurement/assessment of work done in presence of the worker or his mate in a register in Form II. At the end of each wage period, a slip with total work done shall be issued at least a day before wage disbursement. Disputes must be settled on the spot, as far as possible, in consultation with the worker.
  4. Notice of dates of payments in J&K (Rule 15)

The paymaster shall display a notice in English, Hindi, and Urdu at or near the main entrance of the establishment, giving at least one month in advance the dates on which wages are to be paid. Workers absent on payday shall be paid within 3 working days of making a demand.

  1. Application in respect of fines in J&K (Rule 17)
    Employers requiring power to impose fines shall send to the Chief Inspector of Factories:
    (a) a list of acts/omissions (in duplicate, in English);

(b) where the employer is not the sole person imposing fines, a list of appointments empowered to impose fines and classes of employees on whom fines may be imposed.

  1. Display of list of approved acts or omissions in J&K (Rule 19)
    Employers shall display at or near the main entrance a copy of the approved list of acts/omissions in English along with literal translations in Urdu and Hindi.
  2. Persons authorised to impose fines in J&K (Rule 20)

No fine shall be imposed by anyone other than the employer or a person holding an appointment listed under Rule 17.

  1. Procedure to impose fines and deductions in J&K (Rule 21)
    Before imposing a fine or deduction for damage/loss, the act or omission shall be explained to the worker orally (in presence of another person) or in writing, as the worker prefers.
  2. Deduction for breach of contract in J&K (Rule 23(1)(2))
    No deduction for breach of contract shall be made from wages of women or children below 15 years. For others, deductions are valid only if:
    • Contract requires specified notice for termination;
    • Notice of proposed deduction is displayed at entrance for at least one month;
    • Deductions shall not exceed wages for the shortfall period;
    • Workers complying with displayed conditions shall not face deduction.

  3. Limit over Advances of wages & Form I in J&K (Rule 24)
    Advance of wages shall not exceed twice the wages earned in preceding 2 months (or wages likely to be earned if newly employed). Recovery shall be in not more than 12 instalments, each not exceeding one-third of wages (or one-fourth if wages ≤ ₹20). All advances and recoveries shall be recorded in Form I.
  4. Form IV: Annual return (Rule 25(1))

Annual return to be filed in Form IV under the Payment of Wages Rules, 1972.

  1. Form V: Abstract of the Act and J&K Payment of Wages Rules (Rule 30 read with Section 25)

The abstract of the Act and of the Rules made thereunder shall be displayed in Form V as required under Section 25.

  1. Responsibility for payment of wages in J&K (Section 3)

The employer, manager, or other responsible person shall be responsible to make payment of all wages under this Act if a contractor or designated person fails to make such payment.

  1. Fixation of wage-periods in J&K (Section 4)

Every person responsible for the payment of wages shall fix wage periods, and no wage period shall exceed one month.

  1. Time period for payment of wages in J&K (Section 5(1))

Wages shall be paid before the expiry of:

  1. a) the 7th day if fewer than 1000 persons are employed,
  2. b) the 10th day if 1000 or more persons are employed.
  • Time period for payment of wages in case of termination of employment in J&K (Section 5(2))

Where the employment of any person is terminated, wages earned by him shall be paid before the expiry of the second working day from the date of termination.

  1. Payment of wages to be made on a working day in J&K (Section 5(4))
    All payment of wages shall be made on a working day except in cases of termination.
  2. Wages to be paid in current currency notes/coins/cheque/crediting in bank account in J&K (Section 6)

All wages shall be paid in current coin, currency notes, by cheque, or by crediting the wages into the bank account of the employee.

  1. Deductions which may be made from wages in J&K (Section 7)
    Wages shall be paid without deductions of any kind except those authorised under the Act. Certain penalties such as withholding of increments, demotion, or suspension (in conformity with prescribed rules) shall not be deemed deductions.
  2. Total amount of deductions from wages of an employee during a wage period in J&K (Section 7(3))

The total amount of deductions shall not exceed:
i) 70% when deductions are for payments to co-operative societies,
ii) 50% in any other case.

  1. Imposition of fines by employer in J&K (Section 8(1))

No fine shall be imposed on any employed person except in respect of specified acts and omissions approved by the prescribed authority and displayed in a notice.

  1. Display of notice specifying acts and omissions in J&K (Section 8(2))

A notice specifying acts and omissions for which fines may be imposed shall be displayed in the prescribed manner at the workplace.

  1. Restriction on imposing fine in J&K (Section 8(3))

No fine shall be imposed without giving the employee an opportunity of showing cause, and procedure prescribed for fines must be followed.

  1. Total amount of fine which can be imposed in J&K (Section 8(4))

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

  1. No fine shall be imposed on any employed person under the age of fifteen years in J&K (Section 8(5))

No fine shall be imposed on an employed person under 15 years of age.

  1. Time period for recovery of fine by way of instalments in J&K (Section 8(6), 8(7))
    No fine shall be recovered in instalments or after 90 days from the day it was imposed.
  2. Deductions for absence of duty in J&K (Section 9)

Deductions may be made only for absence from the workplace where required, or refusal to work without reasonable cause, including strikes without due notice.

  1. Deductions for damage or loss in J&K (Section 10)

Deductions for damage or loss caused by the neglect or default of the employed person shall not exceed the amount of damage or loss and must follow prescribed procedure.

  1. Deductions for amenity or service rendered by employer in J&K (Section 11)
    Deductions for house accommodation or other amenities shall not be made unless accepted by the employee as a term of employment and shall not exceed the value of such service.
  2. Deductions for recovery of advances in J&K (Section 12)

Deductions for advances shall follow prescribed conditions, including recovery schedule, and shall exclude advances for travel expenses.

  1. Maintenance of registers and records in J&K (Section 13A(1)

Every employer shall maintain registers and records of employees, their work, wages, deductions, receipts, and other prescribed particulars, preserved for 3 years.

Penalties & Punishments

  • Contravention may lead to fine which may extend to Rs. 200/-
  • Section 20 –

(1) Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following section, namely, 6 [section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof,  section 9, section 10 except sub-section (2) thereof, and sections11 to 13, both inclusive, shall be punishable [with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees.

(2) Whoever contravenes the provisions of section 4, sub-section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable with fine which may extend to three thousand seven hundred fifty rupees

Conclusion

The Jammu and Kashmir Payment of Wages Rules, 1972 create a robust framework ensuring that workers receive wages promptly, without unlawful deductions, and with full transparency in wage records. By mandating registers, returns, and public displays of notices, these rules safeguard employees from exploitation and strengthen employer accountability. Adherence to these provisions not only ensures statutory compliance but also fosters trust and fairness in the employer-employee relationship.

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