According to the Payment of Wages Act, 1936, an employer can deduct fines from the wages of an employee. Section 8 offers rules and regulations governing fines under the Act. In this article, we will look at all the rules pertaining to the levying of a fine in detail.
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Section 8 of Payment of Wages Act – Fines
The rules and regulations pertaining to deducting fines from the wages of an employee are as follows:
Sub-section (1)
The employer cannot impose any fine on any employed person save in respect of such acts and omissions on his part as the employer with the previous approval of the State Government or the prescribed authority night have specified via a notice under sub-section (2).
Sub-section (2)
The employer must ascertain that he exhibits the notice which specifies all such acts and omissions in the prescribed manner.
Further, he must exhibit this notice on the premises in which the employees work. Also, in the case of railway employees who work in places other than the factors, the employer must display the notice at the prescribed place or places.
Learn more about Deduction of Wages here in detail.
Sub-section (3)
The employer cannot impose a fine on any employed person until he gives the employed person an opportunity of showing cause against the fine. Also, if the procedure prescribed for the imposition of fine changes, then the employer must give the employed person an opportunity in accordance with it.
Sub-section (4)
Even if an employed person is liable for a fine, the employer cannot impose a fine of more than three percent (3%) of the wages payable to him during any one wage period.
Sub-section (5)
If the employed person is under fifteen years of age, then the employer cannot impose fines on him.
Sub-section (6)
The employer cannot recover the fine imposed on any employed person through installments or after the expiry of ninety (90) days from the date on which he has imposed the fine.
Sub-section (7)
Fines are deemed to have been imposed on the day the employed person commits the act or omission in respect of which the fines were imposed.
Sub-section (8)
According to Section 3 of the Act, a person is deemed responsible for the payment of wages. Further, the same person is also responsible to record all fines and realizations in a register in the prescribed format.
Also, any realization is applied only for purposes beneficial to persons employed in the factory or establishment. These realizations also require approval from the prescribed authority.
Explanation: Let’s say that there are several railways, factory or industrial or other establishments under the same management. In such cases, the person responsible for the payment of wages must credit all realizations to a common fund. This fund is maintained for all the staff under the same management. Also, the fund is applied only to such purposes as the prescribed authority approves.
Solved Question on Fines
Q1. What is the rule pertaining to displaying the notice of all acts and omissions liable for a fine?
Answer: According to sub-section (2) of Section 8 of the Payment of Wages Act, 1936, the rule is as follows:
The employer must ascertain that he exhibits the notice which specifies all such acts and omissions in the prescribed manner. Further, he must exhibit this notice on the premises in which the employees work. Also, in the case of railway employees who work in places other than the factors, the employer must display the notice at the prescribed place or places.
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