A factory is having 400 employed persons and covered under the Payment of Wages Act, 1936. It wants to fix the wage period as one and half month and make the payment of wages within 10 days after the last day of the wage
CS Executive · Setting up of Business Entities and Closure · PYQS · June 2023
A factory is having 400 employed persons and covered under the Payment of Wages Act, 1936. It wants to fix the wage period as one and half month and make the payment of wages within 10 days after the last day of the wage period. Is it permitted under the Payment of Wages Act, 1936?
Answer & Explanation:
As per Section 4 of the Payment of Wages Act, 1936, every person responsible for the payment of wages shall fix wage-periods in respect of which such wages shall be payable. No wage-period shall exceed one month. Further, Section 5 specifies the time of payment of wages. The wages of every person employed upon or in any railway, factory or industrial or other establishment upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day after the last day of the wage period in respect of which the wages are payable. As per above mentioned provisions, the factory cannot fix the wage period as one and half month as it cannot exceed one month and cannot pay the wages within 10 days after the last day of the wage period.
Topics: Labour Laws
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