Compliance requirements under the Rule in accordance with the Act

1. Maintenance of registers and records in Andhra Pradesh (Rule 5, Section 13A of the Payment of Wages Act)

Every industrial establishment must maintain a record of the salaries or wages paid to employees in any convenient manner for 12 months, while also preserving registers with particulars of employees, work performed, wages, deductions, receipts, and other details for 3 years. The register should contain wages earned during normal working time, overtime hours and wages, leave wages, other allowances, statutory deductions, other deductions with nature, net amount paid, date of payment, and a signed receipt. This ensures transparency in wage administration, provides accountability for employers, and safeguards employee rights.

2. Application in respect of fines in Andhra Pradesh (Section 26(3)(c), (f), (h), Rule 10)
   Any paymaster requiring the power to impose fines must send a list in duplicate, in English, to the Chief Inspector of Factories clearly defining the acts and omissions. If the paymaster is not the sole authority, the list must also specify other appointments permitted to impose fines along with the class of establishments where such appointments may exercise this authority. This procedure ensures fines are lawfully imposed with prior approval, thereby protecting employees from arbitrary penalties.
3. Display of list of approved acts or omissions in Andhra Pradesh (Section 26(3)(c), (f), (h), Rule 12)

The paymaster is required to display at or near the main entrance of the factory a copy of the approved list of acts or omissions in English with a translation in the majority language of employees. However, this rule does not apply to establishments without buildings. Displaying such lists ensures that employees are aware of actions that may attract penalties, thereby maintaining fairness and clarity in workplace discipline.

4. Persons authorised to impose fines in Andhra Pradesh (Section 26(3)(c), (f), (h), Rule 13)
   No fine can be imposed by anyone other than the paymaster or a person holding an appointment listed under Rule 10. This provision prevents unauthorized individuals from penalizing employees, ensuring fines are imposed only by recognized authorities.
5. Procedure to impose fines and deduction in Andhra Pradesh (Section 26(3)(c), (f), (h), Rule 14)
   Before imposing any fine or making a deduction for loss or damage, the act, omission, or damage must be explained personally to the employee either orally in the presence of at least one witness or in writing, with both employee and witness signing or thumb-impressing the written explanation. This safeguards employees by providing them an opportunity to be heard before any deduction or fine is finalized.
6. Deduction for breach of contract from wages of employed person in Andhra Pradesh
   (Section 26(3)(g), Rule 16(1)(2))

Deductions for breach of contract cannot be made from wages of women or persons below 15 years of age. Such deductions are valid only if the contract explicitly requires notice before termination and if notice is displayed in the factory. The deduction cannot exceed wages equivalent to the notice period shortfall, and if contract conditions are complied with, no deductions can be made. This ensures deductions are lawful, proportionate, and protective of vulnerable employees.

7. Limit over advances of wages in Andhra Pradesh (Section 26(3)(i), Rule 17)
   Any advance of wages not already earned cannot exceed wages earned in the preceding two months or, if newly employed, twice the likely monthly wages without prior Inspector approval. Recovery must be through instalments spread over not more than twelve months. This protects employees from excessive indebtedness while permitting regulated advances.
8. Maximum limit of loan to employees in Andhra Pradesh for construction of house (Section 26(3)(i), Rule 17-A)

An employed person may be granted a loan not exceeding thirty-six months’ wages for constructing a new house, including land cost, or for purchasing a ready-built house. This provision enables housing benefits to employees while capping borrowing to avoid financial overburden.

9. Manner of recovery of amount of deductions in excess of prescribed limit in Andhra Pradesh (Section 26(3)(i), 7(3), Rule 17-B)

If total deductions exceed prescribed limits under Section 7(3), the excess must be carried forward and recovered in succeeding wage periods within a maximum of six instalments. This protects employees from excessive deductions in a single wage period while ensuring lawful recovery by the employer.

10. Responsibility for payment of wages in Andhra Pradesh (Section 3)

The employer, manager, or responsible person must ensure payment of wages even if a contractor or designated person defaults. The Payment of Wages Act, 1936 applies to employees in factories, railways, and other specified establishments, and covers those earning up to ₹24,000 per month (or higher as notified). This ensures ultimate responsibility lies with the principal employer, protecting employees against non-payment.

11. Fixation of wage-periods in Andhra Pradesh (Section 4)

Every person responsible for payment of wages must fix wage periods, with no wage period exceeding one month. This ensures employees are paid regularly and within predictable cycles.

12. Time period for payment of wages in Andhra Pradesh (Section 5(1))
    Wages must be paid within 7 days of the wage period’s end if fewer than 1,000 employees are employed, and within 10 days if 1,000 or more are employed. This ensures timely disbursal of wages based on establishment size.
13. Time Period for Payment of Wages in case of termination of employment in Andhra Pradesh (Section 5(2))

Where employment is terminated, wages earned must be paid before the expiry of the second working day from the termination date. This provision ensures employees receive final settlement promptly upon leaving service.

14. Payment of wages to be made on a working day in Andhra Pradesh (Section 5(4))
    Wages must be paid only on working days, except in cases of employment termination. This ensures payments are made in regular business circumstances where employees can acknowledge receipt.
15. Wages to be paid in current currency notes / coins / cheque / crediting in bank account in Andhra Pradesh (Section 6)

Wages must be paid in current coin, currency notes, by cheque, or by crediting directly to the employee’s bank account. This ensures secure and verifiable methods of wage payment.

16. Deductions which may be made from wages in Andhra Pradesh (Section 7)
    Wages must be paid without deductions except those authorized under the Act. Deductions can include payments to the employer deemed as deductions, penalties such as withholding of increments, demotion, or suspension (when imposed under government-approved rules). This ensures deductions remain lawful and transparent.
17. Total amount of deductions from wages of an employee during a wage period in Andhra Pradesh (Section 7(3))

Deductions cannot exceed 70% of wages if for payments to cooperative societies or 50% in other cases. Excess beyond this must be carried forward as prescribed. This prevents employees from being left with insufficient wages after deductions.

18. Imposition of fines by employer in Andhra Pradesh
    (Section 8(1))

No fines can be imposed except for acts or omissions approved by the prescribed authority and displayed in notices. Employees must be given an opportunity to show cause, fines cannot exceed prescribed limits, cannot be imposed on persons below 15, must be recovered within 90 days, and recorded in a register. This ensures fair and regulated imposition of fines.

19. Display of Notice specifying acts and omissions in Andhra Pradesh
    (Section 8(2))

A notice listing acts and omissions liable for fines must be exhibited in prescribed places within the establishment or railway premises. This ensures employees are aware of punishable actions in advance.

20. Restriction on imposing fine in Andhra Pradesh (Section 8(3))

No fine can be imposed until the employee has been given an opportunity to show cause or except in accordance with prescribed procedures. This protects employees from arbitrary penalization.

21. Total amount of fine which can be imposed in Andhra Pradesh
    (Section 8(4))

The maximum fine in any wage period cannot exceed 3% of wages payable in respect of that period. This ensures fines remain proportionate.

22. No fine shall be imposed on any employed person under the age of fifteen years in Andhra Pradesh (Section 8(5))

No fine may be imposed on employees below 15 years of age. This protects young workers from financial penalties.

23. Time period for recovery of fine by way of instalments in Andhra Pradesh
    (Section 8(6), (7))

No fine may be recovered in instalments or after 90 days from the date of imposition. Every fine is deemed imposed on the day of the act or omission. This ensures timely recovery and prevents indefinite liabilities.

24. Register of Fines and Realisations in Andhra Pradesh
    (Section 8(8))

All fines and recoveries must be recorded in a prescribed register and applied only to purposes beneficial to employees as approved by the authority. This ensures accountability and proper utilization of fine proceeds.

25. Deductions for absence of duty in Andhra Pradesh
    (Section 9)

Deductions may be made for absence from the workplace or refusal to work, including strikes without reasonable cause. Deductions cannot exceed wages proportionate to absence, and if 10 or more employees absent without due notice, deductions up to 8 days’ wages may be imposed. This ensures deductions for absence are proportionate while discouraging mass absenteeism without notice.

26. Deductions for damage or loss in Andhra Pradesh
    (Section 10, Rule under Section 7(2)(c) & (o) of Payment of Wages Act, 1936)
    A deduction for damage or loss caused to the employer due to neglect or default of an employed person shall not exceed the actual amount of damage or loss. Such deductions cannot be made unless the employee has been given an opportunity to show cause, and the procedure prescribed is followed. All such deductions and recoveries must be recorded in a register maintained by the responsible person under Section 3. This ensures fairness and accountability in recovery from employees for damages.
27. Deductions for amenity or service rendered by employer in Andhra Pradesh
    (Section 11)

Deductions for house accommodation or other amenities provided by the employer cannot be made unless the employee has accepted them as part of the terms of employment. The deduction amount must not exceed the actual value of the accommodation or amenity. This provision safeguards employees from unfair wage reductions while allowing reasonable recovery for voluntarily accepted benefits.

28. Deductions for recovery of advances in Andhra Pradesh
    (Section 12)

Deductions for recovery of advances are subject to specific conditions. Advances given before employment began may only be recovered from the first complete wage payment, and no recovery can be made for travel expenses. Advances given after employment began are subject to conditions imposed by the Government, and recovery of advances against wages not yet earned is restricted by rules regulating limits and instalments. This ensures that recovery of advances is lawful, limited, and not unduly burdensome on employees.