Fair Wages Law

THE PAYMENT OF WAGES ACT, 1936   The Payment of Wages Act, 1936, stands as a fundamental piece of legislation in Pakistan that safeguards the rights and interests of workers in relation to the payment of their wages. It aims to ensure the timely and full payment of wages to employees, promoting economic security and fair labor practices. This act is instrumental in preventing wage exploitation and serves as a cornerstone for workers’ rights within the country.   CONTENTS   Preamble 1 Short title, commencement and application 2 Definitions 3 Responsibility for payment of wages 4 Fixation of wage periods 5 Time of payment of wages 6 Wages to be paid in current coin or currency notes 7 Deductions, which may be made from wages 8 Fines 9 Deductions for absence from duty 10 Deductions for damages or loss. 11 Deductions for services rendered 12 Deductions for recovery of Advances 13 Deductions for payments to co-operative societies and insurance schemes 14 Inspector 15 Claims out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims 16 Single application in respect of claims from an unpaid group 17 Appeal 18 Powers of authorities appointed under Section 15. 19 Power to recover from employer in certain cases 20 Penalty for offences under the Act 21 Procedure in trial of offences 21-A [Omitted] 22 Bar of suits 23 Contracting out 24 [Omitted] 25 Display by notice of abstracts of the Act 26 Rule-making power     THE PAYMENT OF WAGES ACT, 1936 (IV OF 1936) 23rd April, 1936 An Act to regulate the payment of wages to certain classes of persons employed in industry. : — Preamble. : —  Whereas it is expedient to regulate the payment of wages to certain classes of persons employed in industry; It is hereby enacted as follows. : —  – 1. Short title. Extent, commencement and application. : —  (1) This Act may be called the payment of Wages Act, 1936. (2) It extends to the whole of Pakistan. (3) It shall come into force on such date as the Federal Government may by notification in the official Gazette, appoint. (4) It applies in the first instance to the payment of wages to persons employed in any factory and 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. (5) The Provincial Government may after giving three months” notice of its intention of so doing, by notification in the official Gazette, extend the provisions of the Act or any of them to the payment of wages to any class of persons employed in any industrial establishment or any class or group of industrial establishments. (6) Nothing in this Act shall apply to wages payable in respect of a wage-period, which, over such wage-period, averaged more than [one thousand five hundred] rupees a month. 2. Definition. : —  In this Act, unless there is anything repugnant in the subject or context- (i) “factory” means a factory as defined in clause (i) of section 2 of the Factories Act, 1934 (XXV of 1934) ; (ii) “Industrial establishment” means any- (a) tramway or motor omnibus service; (b) dock, wharf or jetty ; (c) inland steam-vessel ; (d) mine, quarry or oil-field ; (e) plantation ; (f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale ; [(g) establishment of a contractor who, directly or indirectly, employs persons [x x x] to do any skilled or unskilled, manual or clerical labour for hire or reward in connection with the execution of a contract to which he is a party, and includes the premises in which or the site at which, any process connected with such execution is carried on. Explanation. “Contractor” includes a “sub-contractor, headman or agent.”]. (iii) “plantation” means any estate which is maintained for the purpose of growing cinchona, rubber, coffee or tea, and on which twenty-five or more persons are employed for that purpose ; (iv) “prescribed” means prescribed by rules made under this Act ; (v) “railway administration” has the meaning assigned to it in clause (6) of Section 3 of the Railways Act, 1890 (IX of 1890); and (vi) “wages” means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable, whether conditionally upon the regular attendance, good work or conduct or other behaviour of the person employed or otherwise, to a person employed in respect of his employment or of work done in such employment, and includes any bonus or other additional remuneration of the nature aforesaid which would be so payable and any sum payable to such person by reason of the termination of his employment, but does not include- (a) the value of any house accommodation, supply of light, water, medical attendance or other amenity, or of any service excluded by general or special order of the Provincial Government; (b) any contribution paid by the employer to any pension fund or provident fund ; (c) any travelling allowance or the value of travelling concession ; (d) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (e) any gratuity payable on discharge. 3. Responsibility for payment of wages. : —  Every employer [including a contractor] shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act. : — Provided that, in the case of persons employed (otherwise than by a contractor)- (a) in factories, if a person has been named as the manager of the factory under clause (e) of sub-section (1) of Section 9 of the Factories Act. 1934 (XXV of 1934), (b) in Industrial establishments, if there is a person responsible