In view of the coronavirus pandemic, we are making LIVE CLASSES and VIDEO CLASSES completely FREE to prevent interruption in studies
Home > Fundamentals of Law and Ethics > Payment of Wages Act > Payment of Wages Act Section 8: Fines
Payment of Wages Act

Payment of Wages Act Section 8: Fines

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.

payments of wages act section 8 fines

                                                                                   Source: Pixabay

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.

Share with friends

Customize your course in 30 seconds

Which class are you in?
5th
6th
7th
8th
9th
10th
11th
12th
Get ready for all-new Live Classes!
Now learn Live with India's best teachers. Join courses with the best schedule and enjoy fun and interactive classes.
tutor
tutor
Ashhar Firdausi
IIT Roorkee
Biology
tutor
tutor
Dr. Nazma Shaik
VTU
Chemistry
tutor
tutor
Gaurav Tiwari
APJAKTU
Physics
Get Started

Leave a Reply

avatar
  Subscribe  
Notify of

Stuck with a

Question Mark?

Have a doubt at 3 am? Our experts are available 24x7. Connect with a tutor instantly and get your concepts cleared in less than 3 steps.

Download the App

Watch lectures, practise questions and take tests on the go.

Customize your course in 30 seconds

Which class are you in?
No thanks.