Central
Section 8 of The PAYMENT OF WAGES ACT, 1936
- (1)No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of 1 [appropriate Government] or of the prescribed authority, may have specified by notice under sub-section (2).
- (2)A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of person employed upon a railway (otherwise than in a factory), at the prescribed place or places.
- (3)No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
- (4)The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amount equal to 2[three per cent.] of the wages payable to him in respect of that wage-period.
- (5)No fine shall be imposed on any employed person who is under the age of fifteen years..
- (6)No fine imposed on any employed person shall be recovered from him by installments or after the expiry of 3[ninety days] from the day on which it was imposed.
- (7)Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
- (8)All fines and all realisations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority. Explanation.--When the persons employed upon or in any railway, factory or 4[industrial or other establishmen] are part only of a staff employed under the same management, all such realisations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.
Summary
- Employers can only fine workers for specific acts or omissions that have been approved by the government and listed on a displayed notice.
- No worker can be fined until they are given a chance to explain themselves and show why the fine should not be imposed.
- The total fine in any one pay period cannot be more than 3 percent of the wages the worker earned.
- It is illegal to fine any child who is under the age of fifteen.
- All money collected from fines must be recorded in a register and used only for things that benefit the employees.
Practical examples
1Anil, a 20 year old factory worker, forgets to wear his safety goggles. Since "failure to wear safety gear" is on the approved notice board, the manager gives Anil a chance to explain his mistake. He then fines Anil 30 rupees, which is exactly 3 percent of his 1,000 rupee weekly wage, as allowed by Section 8 of the Payment of Wages Act.
2A company collects 500 rupees in total fines for the month of October. Instead of keeping the money, the manager uses it to buy new books for the staff library, as Section 8 of the law requires fine money to be used for employee benefits.
FAQ
1. What is the age limit for imposing a fine under Section 8 of the Payment of Wages Act?
Under Section 8 of the Payment of Wages Act, 1936, no fine can be imposed on any person who is under the age of fifteen years.
2. Can a boss take a fine out of my salary in three monthly installments under the Payment of Wages Act?
No, Section 8 of the Payment of Wages Act states that no fine shall be recovered from an employed person by instalments.
3. How much can I be fined under Section 8 of the Payment of Wages Act?
Under Section 8 of the Payment of Wages Act, the total fine in one wage period cannot exceed three percent of the wages payable to you for that period.
Test yourself
Q1.Under Section 8 of the Payment of Wages Act, 1936, a fine is considered imposed on which day?
Q2.According to Section 8 of the Payment of Wages Act, what must happen before a fine is actually imposed?
Q3.Under Section 8 of the Payment of Wages Act, 1936, what is the maximum time allowed to recover a fine?
Q4.If a worker earns 5,000 rupees in a month, what is the maximum fine possible under Section 8 of the Payment of Wages Act?