Background
The Payment of Wages Act, 1936 was enacted to regulate the timely payment of wages to certain classes of employed persons and to prevent unauthorized deductions. To give effect to the provisions of the Act, individual states framed their own rules. In West Bengal, the Payment of Wages Rules, 1958 were introduced, laying down detailed procedures regarding fixation of wage periods, maintenance of registers, permissible deductions, display requirements, and submission of returns. These rules were designed to safeguard workers’ interests, bring transparency to wage disbursement, and ensure accountability of employers.
Applicability
The West Bengal Payment of Wages Rules, 1958 apply to all factories, industrial establishments, and other notified establishments falling under the Payment of Wages Act, 1936 within the state of West Bengal
Compliance requirement under the Rule in accordance with the Actr
The paymaster must display, in a conspicuous place at or near the main entrance of the factory or industrial establishment, a notice in English and in the language of the majority of employees. This notice should specify, one month in advance, the wage period and the exact dates on which wages are to be paid. This ensures clarity for employees and avoids wage-related disputes.
Employers requiring the power to impose fines must submit a list, in duplicate and in English, clearly defining the acts and omissions that may attract fines, to the Chief Inspector of Factories or the Labour Commissioner. If the employer does not intend to remain the sole authority, a duplicate list must also be submitted showing appointments within the establishment that are authorized to impose fines and the departments under their charge. This ensures transparency and regulation in fine imposition.
The employer must display a copy of the approved list of acts or omissions for which fines may be imposed at or near the main entrance of the factory or industrial establishment. This must be available in English, Bengali, and the language of the majority of employees, with a literal translation. This ensures employees are fully aware of the rules governing their conduct.
No fine shall be imposed by any person other than the employer, or a person appointed by the employer whose name is included in the approved list of authorized persons. This ensures fines are imposed only by designated authorities.
Any person intending to impose a fine or deduction for damage or loss must explain to the employee the act, omission, or damage that led to the penalty and the amount involved. The employer must also hear any explanation from the employee in the presence of at least one other person. Once imposed, the paymaster must be informed immediately to update the prescribed register. This process ensures fairness and proper documentation.
Deductions for breach of contract cannot be made from wages of women or persons under 15 years of age. Such deductions can only be made if the contract of employment requires the employee to give a notice period for termination, and the rule is displayed in English and the local language. Notices must also be displayed in the establishment specifying the names of persons subject to deductions, the number of days’ wages deducted, and conditions under which deductions may be remitted. The deduction cannot exceed wages for the shortfall in notice period.
Advances of wages not already earned shall not, without prior permission of the Inspector, exceed the amount equivalent to wages earned during the previous two months, or if newly employed, the wages likely to be earned during the subsequent two months. Recovery of advances must be spread over not more than twelve months, with each installment not exceeding one-third of the wage, or one-fourth if wages are below twenty rupees.
Where deductions are made for damage or loss, the paymaster must maintain the prescribed register in Form II. This ensures deductions are properly documented and verifiable.
Registers of fines, deductions for damage or loss, wages, and advances must be maintained in English, updated regularly in ink, and preserved for three years. These must be available for inspection by authorities. This ensures records are standardized and accessible for compliance verification.
Employers must submit an annual return in Form IV to the Chief Inspector of Factories or Labour Commissioner by 31st January following the end of each calendar year. This facilitates monitoring of compliance under the Act.
Employers must display abstracts of the Payment of Wages Act and the Rules in Form VII at the workplace. This ensures employees are informed about their statutory rights and obligations.
Every employer is responsible for payment of wages under the Act. In case of a factory, the manager is responsible; in industrial or other establishments, the person in charge of supervision and control; in railways, the designated railway official; and for contractors, the designated representative. Even if responsibility is delegated, the employer remains liable to ensure timely payment.
Every person responsible for paying wages must fix wage periods, which cannot exceed one month. This ensures timely and regular disbursement of wages.
Wages must be paid within 7 days from the end of the wage period in establishments with fewer than 1,000 employees, and within 10 days in establishments with 1,000 or more employees. In docks, jetties, and mines, final wages must be paid within 7 days of completing final tonnage accounts.
Where employment is terminated, wages earned must be paid before the expiry of the second working day from the date of termination. In case of closure of an establishment, the same rule applies.
All wage payments must be made on a working day, except in cases of termination. This ensures employees have access to their wages on a regular business day.
Wages must be paid in current coin, currency notes, by cheque, or by crediting them to the employee’s bank account. This ensures secure and reliable wage disbursement.
Wages must be paid without unauthorized deductions. Only deductions permitted under Section 7(2) are allowed. Penalties such as withholding increments, demotion, or suspension are not considered wage deductions if imposed under properly framed rules.
Total deductions in any wage period cannot exceed 75% of wages where deductions are for payments to cooperative societies, and 50% in all other cases. Any excess can be recovered as prescribed, without affecting recovery of dues under other applicable laws.
Deductions can be made only when an employee is absent from the place of work during required working hours. If 10 or more employees absent themselves without due notice and without reasonable cause, deductions may include up to 8 days’ wages in lieu of notice. Employees refusing to work while present (e.g., during a stay-in strike) are also deemed absent.
Deductions for house accommodation, amenities, or services provided by the employer cannot be made unless accepted by the employee as part of employment terms. Such deductions cannot exceed the value of the accommodation or service provided and are subject to government-imposed conditions.
Penalties & Punishments
Rule 25: Any contravention of the Rule shall be punishable with a fine which may extend to two hundred rupees
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, 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 West Bengal Payment of Wages Rules, 1958 serve as a vital extension of the Payment of Wages Act, 1936, addressing state-specific requirements while upholding the core objectives of timely payment and prevention of arbitrary deductions. By mandating registers, returns, display of notices, and proper authorization for fines and deductions, the Rules create a framework of accountability for employers and awareness for employees. For organizations, strict compliance not only avoids legal penalties but also fosters a transparent and fair wage system, strengthening industrial harmony in West Bengal.
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