THE PAYMENT OF WAGES ACT, 1936

CONTENTS
1. Short title, extent, 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 damage 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. Inspectors.

15. Claims arising 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 unpaid group.

17. Appeal.

18. Powers of authorities appointed under section 15.

19. Power to recover from employer in certain cases.

Page 1 of 15
20. Penalty for offences under the Act.

21. Procedure in trial of offences.

22. Bar of suits.

23. Contracting out.

24. [ Omitted.]

25. Display by notice of abstracts of the Act.

26. Rule-making power

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 THE PAYMENT OF WAGES ACT, 1936
1
ACT NO. IV OF 1936

[23rd April, 1936]

An Act to regulate the payment of wages to certain classes of persons employed in industry.

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
[(2) It extends to the whole of Pakistan.]

(3) It shall come into force on such date3 as the 4[Federal Government] may, by notification
in the 5[official Gazette], appoint.

(4) It applies to the payment of wages to persons employed in any factory 6[industrial
establishment or commercial establishment] 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.

6
* * * * * * *

1
For Statement of Objects and Reasons, see Gazette of India, 1935, Pt.V, p.20; and for Report of Select Committee, see ibid., pp.77-79.
This Act has been extended to-
(i) the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order, 1950 (G.G.O.3 of 1950); and applied in the Federated
Areas of Baluchistan, see Gazette of India, 1937, Pt.I, p.1499,
(ii) the Khairpur State, see the Khairpur (Federal Laws) (Extension) Order, 1953 (G.G.O.5 of 1953) as amended,
(iii) the Baluchistan State Union, see the Baluchistan State Union (Federal Laws) (Extension) Order, 1953 (G.G.O.4 of 1953),as
amended, and
(iv) the State of Bahawalpur by the Bahawalpur (Extension of Federal Laws) Order, 1953 (G.G.O.11 of 1953),as amended.
The Act has been and shall be deemed to have been brought into force in Gwadur with effect from 8th September, 1958, by the Gwadur (Application of
Central Laws) Ordinance, 1960 (37 of 1960), s.2.
The Act has been applied to the Provincially Administered Tribal Areas or to the parts or those areas to which it does not already apply, see, Regulation
No. I of 1972, s.2 and Sch.
2
Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s.3 and 2nd Sch. (with effect from the 14th October, 1955), for the original
sub-section (2) as amended by A.O., 1949, and the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s.8.
3
The 28th March, 1937, see Gazette of India, 1937, Pt.I, p.626.
4
Subs. by the Labour Laws (Amdt.) Act, 1975, (11 of 1975),s.2 and Sch., for “Central Government”, which was subs. by A.O., 1937, for “G.G. in C”.
5
Subs. by A.O., 1937, for “Gazette of India”.
6
Omitted and Ins. by Ord. 2001 (LIII of 2001), s.2 &, Sch. (with effect from 1st July, 2001).

Page 3 of 15
 2. Definitions. In this Act, unless there is anything repugnant in the subject or context,—

1
[(i) “commercial establishment” means a commercial establishment as defined in
the West Pakistan Industrial and Commercial (Standing Orders) Ordinance,
1968 (W. P. Ordinance VI of 1968).].

1
[(ia)] “factory” means a factory as defined in clause (j) of section 2 of the Factories
Act, 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;
2
[(g) establishment of a contractor who, directly or indirectly, employs
persons 3* * * 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 in 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

1
Ins. and renumbered by Ord.53 of 2001, s.2 and Sch. (with effect from 1st July, 2001).
2
Ins. by the payment of wages (Amdt.) Act, 1973 (17 of 1973),s.3.
3
The words “in any industrial establishment” omitted by the Labour Laws (Amdt.) Act, 1977 (17 of 1977),s.2 and First Sch.

Page 4 of 15
 (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 behavior 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 rem-
uneration 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 1 * * * 2[Provincial Government];

(b) any contribution paid by the employer to any pension fund or

provident fund;

(c) any travelling allowance or the value of any 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 3[, 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 to the employer for

the supervision and control of the industrial establishment,

(c) upon railways (otherwise than in factories), if the employer is the railway
administration and the railway administration has nominated a person in this
behalf for the local area concerned,

the person so named, the person so responsible to the employer, or the person so nominated, as the
case may be, shall be responsible for such payment.

1
The words “G. G. in C. or” omitted by A. O., 1937.
2
Subs., ibid., for “L. G”
3
Ins. by the Labour Laws (Amdt.) Ordinance, 1972 (9 of 1972), s.2 and Sch.

Page 5 of 15
 4. Fixation of wage-periods.—(1) Every person responsible for the payment of wages under
section 3 shall fix periods (in this Act referred to as wage periods) in respect of which such wages
shall be payable.

(2) No wage-period shall exceed one month.

5. Time of payment of wages.—(1) The wages of every person employed upon or in—

(a) any railway, factory or industrial establishment upon or in which less than one
thousand persons are employed, shall be paid before the expiry of the seventh
day,

(b) any other railway, factory or industrial establishment, shall be paid before the
expiry of the tenth day, after the last day of the wage-period in respect of
which the wages are payable.

(2) Where the employment of any person is terminated by or on behalf of the employer, the
wages earned by him shall be paid before the expiry of the second working day from the day on
which his employment is terminated.

(3) The 1[Provincial Government] may, by general or special order, exempt, to such extent
and subject to such conditions as may be specified in the order, the person responsible for the pay-
ment of wages to persons employed upon any railway (otherwise than in a factory) from the
operation of this section in respect of the wages of any such persons or class of such persons.

(4) All payments of wages shall be made on a working-day.

6. Wages to be paid in current coin or currency notes. All wages shall be paid in current
coin or currency notes or in both.

7. Deductions which may be made from wages.__ (1) Notwithstanding the provisions of
sub-section (2) of section 47 of the Railways Act, 1890 (IX of 1890), the wages of an employed
person shall be paid to him without deductions of any kind except those authorised by or under this
Act.

Explanation.— Every payment made by the employed person to the employer or his agent
shall, for the purposes of this Act, be deemed to be a deduction from wages.

(2) Deductions from the wages of an employed person shall be made only in accordance with
the provisions of this Act, and may be of the following kinds only, namely :—

1
Subs. by A.O., 1937, for “G. G in C.”.

Page 6 of 15
 (a) fines ;

(b) deductions for absence from duty ;

(c) deductions for damage to or loss of goods expressly entrusted to the employed
person for custody, or for loss of money for which he is required to account,
where such damage or loss is directly attributable to his neglect or default ;

(d) deductions for house-accommodation supplied by the employer ;

(e) deductions for such amenities and services supplied by the employer as the 1*
* * 2[Provincial Government] may, by general or special order3, authorise;

Explanation.___ The word “services” in this sub-clause does not include the supply of tools
and raw materials required for the purposes of employment.

(f) deductions for recovery of advances or for adjustment of over-payments of

wages;

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a Court or other authority

competent to make such order;

(i) deductions for subscriptions to, and for repayment of advances from, any
provident fund to which the Provident Funds Act, 1925 (XIX of 1925), applies
or any recognised provident fund as defined in section 4[clause (37) of section
2 of the Income Tax Ordinance, 1979 (XXXI of 1979)], or any provident fund
approved in this behalf by the 2[Provincial Government], during the
continuance of such approval; 5*

(j) deductions for payments to co-operative societies approved by the 2[Provincial

Government] or to a scheme of insurance maintained by the 6[Pakistan Post
Office] 7[and

(k) deductions, made with the written authorisation of the employed person, in
furtherance of any War Savings Scheme, approved by the Provincial
Government, for the purchase of securities of the 8[Government of Pakistan],
or the Government of the United Kingdom.]

1
The words “G.G in C. or” omitted ibid.
2
Subs. ibid., for “L.G”.
3
For such Order, see Gaz. of P., 1952, Pt. I, Section 1, p.158.
4
Subs by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and Sch, II, for “58 A of the Income Tax Act, 1922”.
5
The word “and” omitted by the Payment of Wages (Amdt.) Ordinance, 1940 (3 of 1940), s. 2
6
Subs. by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 4 and 3rd Sch., for “Indian Post Office”.
7
The word “and” and clause (k) ins. by Ordinance 3 of 1940, s. 2.
8
Subs. by A.O., 1949, for “Government of India”.

Page 7 of 15
 8. Fines.___ (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 the 1[Provincial
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 persons 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 half an anna in the rupee 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 sixty 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 industrial
establishment 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.

9. Deductions for absence from duty.____ (1) Deductions may be made under clause (b) of
subsection (2) of section 7 only on account of the absence of an employed person from the place or
places, where by the terms of his employment, he is required to work, such absence being for the
whole or any part of the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed
person in respect of the wage-period for which the deduction is made a larger proportion than the
period for which he was absent bears to the total period, within such wage-period, during which by
the terms of his employment, he was required to work:

1
Subs. by A.O., 1937, for “L.G”.

Page 8 of 15
 Provided that, subject to any rules made in this behalf by the 1[Provincial Government], if ten
or more employed persons acting in concert absent themselves without due notice (that is to say
without giving the notice which is required under the terms of their contracts of employment) and
without reasonable cause, such deduction from any such person may include such amount not
exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due
notice.
2
[Explanation.—For the purposes of this section, an employed person shall be deemed to be
absent from the place where he is required to work if, although present in such place, he refuses, in
pursuance of a stay-in-strike or for any other cause which is not reasonable in the circumstances, to
carry out his work.]

10. Deductions for damage or loss.—(1) A deduction under clause (c) of sub-section (2) of
section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or
default of the employed person and shall not be made until the employed person has been given an
opportunity of showing cause against the deduction, or otherwise than in accordance with such
procedure as may be prescribed for the making of such deductions.

(2) All such deductions and all realizations 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 pres-
cribed.

11. Deductions for services rendered. A deduction under clause (d) or clause (e) of sub-
section (2) of section 7 shall not be made from the wages of an employed person unless the house-
accommodation, amenity or service has been accepted by him, as a term of employment or
otherwise, and such deduction shall not exceed an amount equivalent to the value of the house-
accommodation, amenity or service supplied and, in the case of a deduction under the said clause (e),
shall be subject to such conditions as 3* * * the 1[Provincial Government] may impose.

12. Deductions for recovery of advances. Deductions under clause (f) of sub-section (2) of
section 7 shall be subject to the following conditions, namely:—

(a) recovery of an advance of money given before employment began shall be

made from the first payment of wages in respect of a complete wage-period,
but no recovery shall be made of such advances given for traveling-expenses;

(b) recovery of advances of wages not already earned shall be subject to any rules
made by the 1[Provincial Government] regulating the extent to which such
advances may be given and the installments by which they may be recovered.

1
Subs. by A. O., 1937, for “L.G.”.
2
Explanation ins. by the Payment of Wages (Amdt.) Act, 1937 (22 of 1937), s. 2.
3
The words “the G. G. in C. or” omitted by A. O., 1937.

Page 9 of 15
 13. Deductions for payments to co-operative societies and insurance schemes. Deductions
under clause (j) 1[and clause (k)] of sub-section (2) of section 7 shall be subject to such conditions as
the 2[Provincial Government] may impose.

14. Inspectors.__ (1) An Inspector of Factories appointed under sub-section (1) of section 10
of the Factories Act, 1934 (XXV of 1934), shall be an Inspector for the purposes of this Act in
respect of all factories within the local limits assigned to him.

(2) The 3[Provincial Government] may appoint inspectors for the purposes of this Act in
respect of all persons employed upon a railway (otherwise than in a factory) to whom this Act
applies.

(3) The 4[Provincial Government] may, by notification in the 5[official Gazette], appoint such
other persons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local
limits within which and the class of factories and industrial establishments in respect of which they
shall exercise their functions.

(4) An Inspector may, at all reasonable hours, enter on any premises, and make such
examination of any register or document relating to the calculation or payment of wages and take on
the spot or otherwise such evidence of any person, and exercise such other powers of inspection, as
he may deem necessary for carrying out the purposes of this Act.

(5) Every Inspector shall be deemed to be a public servant within the meaning of the
Pakistan Penal Code (XLV of 1860).

15. Claims arising out of deductions from wages or delay in payment of wages and
penalty for malicious or vexatious claims.__ (1) The 2[Provincial Government] may, by
notifications6 in the 7[official Gazette], appoint any Commissioner for Workmen’s Compensation or
other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the
authority to hear and decide for any specified area all claims arising out of deductions from the
wages, or delay in payment of the wages, 8[or non-payment of dues relating to provident fund or
gratuity payable under any law,] of persons employed or paid in that area.

1
Ins. by the Payment of Wages ( Amdt.) Ordinance, 1940 (3 of 1940), section 3.
2
Subs. by A. O., 1937, for “L. G.”.
3
Subs. by A. O., 1937, for “G. G. in C.”.
4
Subs. ibid., for “L. G.”.
5
Subs. by A. O., 1937, for “local official Gazette”.
6
For such Notifin:__
(i) see Notifin. No. 1237-P./ 36-III, P. & M.D. (Misc.), dated the 5th April, 1939, published in Sindh Gazette, 1939, Pt. I, p. 630.,
(ii) see Notifin. No. S. R. O. 673 (K)/61, dated the 8th July, 1961, published in the Gaz. of P., 1961, Pt.I, p. 268,
7
Subs. by A. O., 1937, for “local official Gazette”.
8
Ins. by the Payment of Wages ( Amdt.) Act, 1973,(17 of 1973), s. 4.

Page 10 of 15
 (2) Where contrary to the provisions of this Act any deduction has been made from the wages
of an employed person, or any payment of wages 1[or of any dues relating to provident fund or
gratuity payable under any law,] has been delayed, such person himself, or any legal practitioner or
any official of a registered trade union authorised in writing to act on his behalf, or any Inspector
under this Act, 1[or any of the heirs of an employed person who has been died,] or any other person
acting with the permission of the authority appointed under sub-section (1), may apply to such
authority for a direction under sub-section (3):

Provided that every such application shall be presented within 2[three years] from the date on
which the deduction from the wages was made or from the date on which the payment of the wages
was due to be made, as the case may be:
Provided further that any application may be admitted after the said period of 2[three years]
when the applicant satisfies the authority that he had sufficient cause for not making the application
within such period.
(3) When any application under sub-section (2) is entertained, the authority shall hear the
applicant and the employer or other person responsible for the payment of wages under section 3, or
give them an opportunity of being heard, and, after such further inquiry (if any) as may be necessary,
may, without prejudice to any other penalty to which such employer or other person is liable under
this Act, direct the refund to the employed person 3[or , if the applicant is one of the heirs of an
employed person, the payment to such applicant,] of the amount deducted, or the payment of the
delayed wages, together with the payment of such compensation as the authority may think fit, not
exceeding ten times the amount deducted in the former case and not exceeding ten rupees in the
latter:
Provided that no direction for the payment of compensation shall be made in the case of
delayed wages if the authority is satisfied that the delay was due to—
(a) a bonafide error or bonafide dispute as to the amount payable to the employed
person, or
(b) the occurrence of an emergency, or the existence of exceptional
circumstances, such that the person responsible for the payment of the wages
was unable, though exercising reasonable diligence, to make prompt payment,
or
(c) the failure of the employed person to apply for or accept payment.
(4) If the authority hearing any application under this section is satisfied that it was either
malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to
the employer or other person responsible for the payment of wages by the person presenting the
application.
(5) any amount directed to be paid under this section may be recovered__

(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by

him as Magistrate, and

1
Ins. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and First Sch.
2
Subs. by the Payment of Wages (Amdt.) Act, 1973 (17 of 1973), s. 4 or “six months”.
3
Ins. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977) s. 2 and First Sch.

Page 11 of 15
 1
[(b) if the authority is not a Magistrate, by the authority as an arrear of land-
revenue, or, in the prescribed manner, by the authority by distress and sale of
the movable property belonging to the person by whom the amount is to be
paid, or by attachment and sale of the immovable property belonging to such
person.] to whom the authority makes application in this behalf, as if it were a
fine imposed by such Magistrate.

16. Single application in respect of claims from unpaid group.— (1) Employed persons
are said to belong to the same unpaid group if they are borne on the same establishment and if their
wages for the same wage-period or periods have remained unpaid after the day fixed by section 5.

(2) A single application may be presented under section 15 on behalf or in respect of any
number of employed persons belonging to the same unpaid group, and in such case the maximum
compensation that may be awarded under sub-section (3) of section 15 shall be ten rupees per head.

(3) The authority may deal with any number of separate pending applications, presented
under section 15 in respect of persons belonging to the same unpaid group, as a single application
presented under sub-section (2) of this section, and the provisions of that sub-section shall apply
accordingly.

17. Appeal.— (1) An appeal against a direction made under 2[sub-section (3) or sub-section
(4)] of section 15 may be preferred, within thirty days of the date on which the direction was made,
3
* * * before the 4[Labour Court constituted under the Industrial Relations Ordinance, 1969 (XXIII
of 1969), within whose jurisdiction the cause of action to which the appeal relates arose]—

(a) by the employer or other person responsible for the payment of wages under
section 3, if the total sum directed to be paid by way of wages and compensa-
tion exceeds three hundred rupees [:]5
6
[Provided that no appeal under this clause shall lie unless the memorandum of appeal is
accompanied by a certificate of the authority to the effect that the appellant has deposited with the
authority the amount payable under the direction appealed against, or].
7
[(b) by an employed person or, if he has died, by any of his heirs, if the total
amount of wages claimed to have been withheld from the employed person or
from the unpaid group to which he belonged exceeds fifty rupees, or]

(c) by any person directed to pay a penalty under 8[sub-section (4)] of section 15.

1
Subs. by the Labour Laws. (Amdt.) Act, 1976 (II of 1976), s. 2 and Sch., for clause (b).
2
Subs. by the Repealing and Amending Act, 1937 (20 of 1937), s. 2 and 1st Sch., for “sub-section (3)”.
3
The words “in a Presidency-town [or in Rangoon] before the Court of Small Causes and elsewhere” omitted by A. O., 1949. The words within
crotchets were omitted by A. O., 1937.
4
Subs. by the Labour Laws (Amdt.) Act, 1975 (11 of 1975), s. 2 and Sch., for “District Court”.
5
Subs. by the Labour Laws (Amdt.) Act, 1976 (11 of 1976), s. 2 and Sch., for “or”,.
6
Added ibid.
7
Subs. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and First Sch., for clause (b).
8
Subs. by the Repealing and Amending Act, 1937 (20 of 1937), s. 2 and 1st Sch., for “sub-section (5)”.

Page 12 of 15
 1
[(1A) All appeals pending before any District Court under this section immediately before
the commencement of the Labour Laws (Amendment) Act, 1975 , shall , on such commencement
stand transferred to, and be disposed of by , the Labour Court within whose jurisdiction the cause of
action to which the appeal relates arose.].

(2) Save as provided in sub-section (1), any direction made under sub-section (3) or
2
[sub-section (4)] of section 15 shall be final.

18. Powers of authorities appointed under section 15. Every authority appointed under
sub-section (1) of section 15 shall have all the powers of a Civil Court under the Code of Civil
Procedure, 1908 (V of 1908), for the purpose of taking evidence and of enforcing the attendance of
witnesses and compelling the production of documents, and every such authority shall be deemed to
be a Civil Court for all the purposes of section 195 and of Chapter XXXV of the Code of Criminal
Procedure, 1898 (V of 1898).

19. Power to recover from employer in certain cases. When the authority referred to in
section 15 or the Court referred to in section 17 is unable to recover from any person (other than an
employer) responsible under section 3 for the payment of wages any amount directed by such
authority under section 15 or section 17 to be paid by such person, the authority shall recover the
amount from the employer of the employed person concerned.

20. Penalty for offences under the Act.___ (1) Whoever being responsible for the payment of
wages to an employed person contravenes any of the provisions of any of the following sections,
namely, section 5 and sections 7 to 13, both inclusive, shall be punishable with fine which may
extend to five hundred rupees.

(2) Whoever contravenes the provisions of section 4, section 6 or section 25 shall be

punishable with fine which may extend to two hundred rupees.

21. Procedure in trial of offences.__(1) No Court shall take cognizance of a complaint

against any person for an offence under sub-section (1) of section 20, unless an application in respect
of the facts constituting the offence has been presented under section 15 and has been granted wholly
or in part and the authority empowered under the latter section or the appellate Court granting such
application has sanctioned the making of the complaint.

(2) Before sanctioning the making of a complaint against any person for an offence under
sub-section (1) of section 20, the authority empowered under section 15 or the appellate Court, as the
case may be, shall give such person an opportunity of showing cause against the granting of such
sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his
default was due to__

(a) a bona fide error or bona fide dispute as to the amount payable to the
employed person, or
(b) the occurrence of an emergency, or the existence of exceptional
circumstances, such that the person responsible for the payment of the wages
was unable, though exercising reasonable diligence, to make prompt payment,
or
_________________________________________________________________________________________________________________________
1
Ins. by the Labour Laws (Amdt.) Act. 1975, 11 of 1975, s. 2 and Sch.
2
Subs. by the Repealing and Amending Act, 1937 (20 of 1937), s. 2 and 1st Sch., for “sub-section (5)”

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 (c) the failure of the employed person to apply for or accept payment.

(3) No Court shall take cognizance of a contravention of section 4 or of section 6 or of a

contravention of any rule made under section 26 except on a complaint made by or with the sanction
of an Inspector under this Act.

(4) In imposing any fine for an offence under sub-section (1) of section 20 the Court shall
take into consideration the amount of any compensation already awarded against the accused in any
proceedings taken under section 15.
1
[* * * * * * *]

22. Bar of suits. No Court shall entertain any suit for the recovery of wages or of any
deduction from wages in so far as the sum so claimed—

(a) forms the subject of an application under section 15 which has been presented
by the plaintiff and which is pending before the authority appointed under that
section or of an appeal under section 17 ; or

(b) has formed the subject of a direction under section 15 in favour of the plaintiff
; or

(c) has been adjudged, in any proceeding under section 15, not to be owed to the
plaintiff ; or

(d) could have been recovered by an application under section 15.

23. Contracting out. Any contract or agreement, whether made before or after the
commencement of this Act, whereby an employed person relinquishes any right conferred by this
Act shall be null and void in so far as it purports to deprive him of such right.
224. [Application of Act to Railways, etc.] Omitted by A. O., 1964, Art. 2 and Sch.

25. Display by notice of abstracts of the Act. The person responsible for the payment of
wages to persons employed in a factory shall cause to be displayed in such factory a notice
containing such abstracts of this Act and of the rules made thereunder in English and in the language
of the majority of the persons employed in the factory, as may be prescribed.
26. Rule-making power.—(1) The 3[Provincial Government] may make rules4 to regulate
the procedure to be followed by the authorities and Courts referred to in sections 15 and 17.
(2) The 5[Provincial Government] may, 6* * *, by notification in the 7[official Gazette], make
rules8 for the purpose of carrying into effect the provisions of this Act.
1
Section 21A omitted by the Payment of Wages (Amdt.) Act, 1973 (17 of 1973), s. 5, which was amended by Ord., 9 of 1972, s. 2 and First Sch.
2
This section was amended by A.O., 1937 and A.O., 1961.
3
Subs. by A. O., 1937., for “G.G. in C.”.
4
For the Payment of Wages (Procedure) Rules, 1937, made by the Governor General in Council under this provisions, see Gazette of India, 1937, Pt., I,
pp. 303-312.
5
Subs. by A. O., 1937 for “L.G.”.
6
The words “Subject to the control of the G.G. in C.”, omitted ibid.
7
Subs. ibid., for “local official Gazette”.
8
For the payment of wages (Railways) Rules, 1937,made by the G.G in C. under this provision read with s.24, see Gazette of India, 1937, Pt.I,pp.503-
512.
For the payment of wages (Karachi Port) Rules, 1958, see Gaz. of P., 1958, Pt.I, pp.216-223.

Page 14 of 15
 (3) In particular and without prejudice to the generality of the foregoing power, rules made
under sub-section (2) may—

(a) require the maintenance of such records, registers, returns and notices as are
necessary for the enforcement of the Act and prescribe the form thereof;

(b) require the display in a conspicuous place on premises where employment is

carried on of notices specifying rates of wages payable to persons employed
on such premises;

(c) provide for the regular inspection of the weights, measures and weighing
machines used by employers in checking or ascertaining the wages of persons
employed by them;

(d) prescribe the manner of giving notice of the days on which wages will be paid;

(e) prescribe the authority competent to approve under sub-section (1) of section 8
acts and omissions in respect of which fines may be imposed;

(f) prescribe the procedure for the imposition of fines under section 8 and for the
making of the deductions referred to in section 10;

(g) prescribe the conditions subject to which deductions may be made under the
proviso to sub-section (2) of section 9;

(h) prescribe the authority competent to approve the purposes on which the
proceeds of fines shall be expended;

(i) prescribe the extent to which advances may be made and the installments by
which they may be recovered with reference to clause (b) of section 12;

(j) regulate the scales of costs which may be allowed in proceedings under this
Act;

(k) prescribe the amount of court-fees payable in respect of any proceedings under
this Act; and

(l) prescribe the abstracts to be contained in the notices required by section 25.

(4) In making any rule under this section the 1[Provincial Government] may provide that a
contravention of the rule shall be punishable with fine which may extend to two hundred rupees.

(5) All rules made under this section shall be subject to the condition of previous publication,
and the date to be specified under clause (3) of section 23 of the General Clauses Act, 1897, shall not
be less than three months from the date on which the draft of the proposed rules was published.

1
Subs. by A.O., 1937, for “L.G.”.

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