Summary / Important Points of THE KARNATAKA PAYMENT OF WAGES ACT, 1963 AND THE RULES, INDIA in Word / Doc / Pdf Free Download


Whom the Act Affects:

1. The Act applied to the payment of wages to persons employed in any factory/Industrial Establishment receiving less than Rs…………………………per month.

2. No employed person can give up by contract or agreement his rights under the Act.

Definition of Wages

3.  "Wages" means all remuneration (whether by way of salary, allowances, or otherwise) payable to an employed person in respect of his employment or of work done in such employment.
      It includes bonus, if provided for expressly or implicitly in the contract of employment and any sum payable for want of proper notice or discharge. It excludes   the value of any house-accommodation, supply of light, water, medical attendance or other amenity or any service excluded by the State Government;

Any contribution paid by the employer to any pension or provident fund

Any traveling allowance or the value of any traveling concession or other special expenses
entitled by the employment,  any sum paid to the employed person to defray special expenses
entailed on him by the nature of his employment; any gratuity payable on the termination of

Responsibility for and Method of payment of wages

4. The Manager of the factory/ Industrial Establishment is responsible for the payment under the
    Act of wages to persons employed and any contractor employing persons is responsible for
    the payments to the persons he employs.

5. No wage-period shall exceed one month.

6. Wages shall be paid on a working day within 07 days or the end of the wage period (or within
   10 days if 1000 or more persons are employed) the wages of the person discharged shall be
    Paid not latter than the 2nd working day from the day on which his employment is discharged.

7. Payments in kind are prohibited.

Fines and Deductions

8. No deduction shall be made from the wages of an employed person except those authorized
     by or under this Act. (See paragraph 9-15)

9. (1) Fines can be imposed only for such acts and omissions as the employer may, with the
         previous approval of the chief  Inspector of Factories, specify by a notice displayed at or     
         near  main entrance of the factory or Industrial Establishment and after giving the employed     
         person   an opportunity for explanation.

(2) Fines- a) shall not exceed………………………in the rupee;
                 b) Shall not be recovered by installments, or latter than 60 days of the date of
                 c) Shall be recorded in a register and applied to such purposes beneficial to the
                      Employed persons as approved by the Chief Inspector; and
                 d) Shall not be imposed on a child.

10. (a) Deductions for absence from duty can be made only on account of the absence of the
           employed person at times when he should be working and such deductions must not
           exceed an amount which is in the same proportion to his wages for the wage period, at
           the time he was absent in that period is to the total time he should have been at work.

     (b) If 10 or more employed persons, acting in concert, absent themselves without
          reasonable cause and without due notice, the deduction for absence can include wages
          for 8 days in lieu of notice, but:-

No deduction for breaking a contract can be made from a person less than 15 years of age or
a woman.

There must be provision in writing forming part of the contract of employment, and requiring the
Employee to give notice of the termination of such employment the period of such notice not
exceeding either- 15 days or the wage period, which ever is less; or

The period of the notice which the employer is required to give of the termination of that employment.
The above provision must be displayed at or near the main entrance of the factory/ Industrial Establishment

No deduction of this nature can be made until a notice that this deduction is to be made has been posted at or near the main entrance of the factory/ Industrial Establishment

No deduction must exceed the wages of the employed person for the period by which the notice he gives of leaving employment is less than the notice he should give under his contract.

11. Deductions for damage to or loss of goods expressly entrusted to an employed person or
      loss of money for which he is required to account, where such damage or loss is directly
      attributable to his neglect or default Such deduction can not exceed the amount of the
      damage or loss caused and can be made only after giving the employed person an
      opportunity for explanation.

12. Deductions can be made, equivalent to the value thereof, for house-accommodation,
      amenities and services (other than foods and raw material) supplied by the employer
      provided these are accepted by the employed person as a part of the terms of his
      employment and have in the case of amenities and services been authorized by order of the
      State Government.

13. a) Deductions can be made for recovery of advances or for adjustment of over-payments of
      b) Advances made before the employment began can only be recovered from first payment
          of wages or a complete wage period but no recovery can be made of advances given for
          traveling expenses before employment began.
      c) Advances of unearned wages can be made at the employer’s discretion during
          employment. But must not exceed the amount of 2 months wages without the permission
          of an inspector.

14. Deductions can be made for subscriptions to, and for repayment of advances from any
       recognized provident fund.

15. Deductions can be made for payments to co-operative societies approved by the State
      Government or to the Insurance of Mysore Government Insurance Department subject to
      any conditioned imposed by the State Government.


16. An Inspector can enter on any premises and can exercise powers of inspection (including
      examination of documents and Taking of evidence) as he may deem necessary for carrying
      out the purpose of the Act.

Complaints of Deductions or Delays:

17. Where irregular deductions are made from wages, or delays in payment take place, an       
      employed person can make an application in the prescribed form within six months to the    
      authority appointed by the State Govt for the purpose. An application delayed beyond this       
      period may be rejected unless sufficient cause for the delay is shown.

Any legal practitioner, official of a registered trade union, inspector under the Act, or other person acting with the Permission of the authority can make the complaints on behalf of an employed person.

A single may be presented by or on behalf of any number of persons belonging to the same factory/ industrial Establishment the payment of whose wages has been delayed.

Action by the authority:

18.The authority may award compensation to the employed person in addition to ordering the
     payment of delayed wages Or the refund of illegal deductions. If a malicious or vexatious
     complaint is made, the authority may impose a penalty not exceeding Rs. 50 on the
    applicant and order that it be paid to the employer.

Appeal against the authority

19. An appeal against an order or direction made by the authority may be referred, within thirty
     days to the District Court.

(a) by the employer, if the total sum directed to be paid exceeds three hundred rupees.
(b)  by an employed person or any legal practitioner or any official of a registered trade
      union if the total amount of wages withheld from him or his co-workers, exceed fifty
(c) by any person directed to pay a penalty for a malicious or vexatious application.
      Punishment for breaches of  the Act
      Any one delaying the payment of wages beyond the due date or making any unauthorized
      deduction from wages is liable to a fine upto Rs. 500/- but only if prosecuted with the
      sanction of the authority or the Appellate Court.

20. The employer, who –

Does not fix a wage period, make payment in kind, fails tom display at or near the main entrance of the factory/ industrial establishment of this abstract in English and the language of the majority of the employed persons, contravenes certain rules made under the Act, is liable to a fine not exceeding Rs 200.

A complaint to this effect can be made only by the inspector, or with his sanction.

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