 the payment of wages (amend- ment) bill, 1957(as introducbd in lok sabra)  bm no 21 of 1957 tim payment of wages (amendmen1j bill, 1957 (as introduced in lob: sabra) a billfurther to amend the payment of wage, act, 1938 bb it enacted by parliament in the eighth year of the republic of india as follows:-1 (1) this act may be called the payment of wages (amend- soon title ment) act, 1957 and commencement· (2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint 2 in section 1 of the payment of wages act, 1936 (hereinafter amendment referred to as the principal act),-of icc:tion 1 i 10 (i) in sub-section (5), for the words "the act",! the words 41thls act" shall be substitutecl; and (ti) in sub-section (6), for the words "two hundred rupees", the words "four hundred rupees" shall be substituted is 3 in section 2 of the principal act-amof ~ent -  onz (0 for clause (i), the following clause shall be substituted, namely:- c (i) "factory" means a factory as defined in clause (m) of section 2 of the factories act, 1948;'; (ii) in clause (ii)-(1) for item (c), the following item shall be ,ubstitu-2g ted, namely:-u (c) inlaild vessel, mechanically propelled;"; (z) after item (fl, the followlng item mall be wert4ml, namely:-"(g) establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to opera- 5 tions connected with navigation, irrigation or the supply of water, or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on;"; and (iii) for clause (ui) , the following clause shall b eubftitu- 10 ted, namely:-i (vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of be~so expressed which would, if the terms of employment, express or implied, were fuifuled, is be payable to a person employed in respect of bis employment or of work done in such employment, and includes-(a) any remuneration payable under any award or settlfmlentbetween the parties or order of a court; (b) any remuneration to which the petlad~o employed is entitled in respect of over time work or holidays or any leaveperlod; (e) any additional remuneration payable under the terms of employment (whether ealled a bonus or by any other name); 2$ (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within 30 which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under  any lew for the time being in force; but does not include-3s (1) any bonus (whether under a scheme of "profit sharing or otherwise)  which does not form part of the remuneration payable under the terms of employment 'or which is not payable under any award or settlement between the parties or order of a court; 40 (z) the value of any house-accommodation, or of the supply of light, water, medical attendance or other lidlerllty or of any service excluded from the computation of wages by a general or special order of the state government; s (3) any contribution paid by the employer to any ped8ion or provident fund, and the interest which may move accrued thereon; 10 (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of hi8 employme~t; or  is (6) any gratuity payable on the termination of employment in cases other than those specified in subclause {d)' , in section 3 of the principal act, in clause (a) of the proviso, ameodmellt for the words, brackets, letter and figures "clause (e) of sub- ofsection 3 z, of 1934 section (1) of section 9 of the factories act, 1934", the words, 20 brackets, letter and figures "clause (f) of sub-section (1) of section 63 of 19 7 of the  factories act, 1948" shall be substituted 5 in 'section 7 of the principal act,-amendment of aection 7 (i) in sub-section (1), the explanation shall be re-numbered as explanation 1, and after the explanation as so re-numbered, 2s the following explanation shall be inserted, namely:-·'exp14nation n-any loss of wages resulting from the imposition, ior good and sufficient cause, upon a perion employed of any of the following penalties, namely:-30 (i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar) ; (ii) the reduction to a lower poet or time scale or to - lower stage in a time scale; or 35 (iii) suspension; shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if ;any, which may be specified in this behalf by the state government by notification in th~ official guette"; (ii) in sub-section (2), for clause (d), the following clause hall be substituted, namely:-albendj'llen t of lectiol1 i" " (d) deductions for house-accommodation supplied by the employer or by government or any housing board set up under any law for the time being in force (whether the 5 government or the board is the employer or not) or any other authority engaged in the business of subsidising houseaccommodation which may be specified in this behalf by the state government by notification in the ofbclal gazette;"; and (iii) for clause (k), the following clause shall be substituted, 10 namely:-"(k) deductions, made with the written authorisation of the person employed for payment of any premium on hit life insurance policy to the life insurance corporation of india established under the life insurance corporation act, 15 1956, or for the purchase of securities of the government of 31 of 1956 india or of any state government or for being deposited in any post office savings bank in furtherance of any savings scheme of any such government;" • in section 14 of the principal act, in sub-section (1), for the 20 words, brackets and figures "sub-section (1) of s~on 10 of the factories act, 1934", the following shall be substituted, namely:-2, of 193 •• "sub-section (1) of section 8 of the factories act, 1948" 63 of ip4i  7 in section 17 of the principal act,-amendment of cctlon 17· (i) in sub-section (1)-25 (a) for the words, brackets and figures "an appeal against a direction made under sub-section (3) or bub-section (4) of section 15", the following shall be substituted, namely:-"an appeal against an order dismissing either wholly 30 or in part an application made under sub-section (2) of section 15, or against a direction made under sub-section (3) or sub-section (4) of that sectio:t:l"; (b) for the words "the direction", the words "the order or direction" shall be substituted; and 35 (ii) for sub-section (2), the following sub-section shall be substituted, namely: - ii (2) save as provided in cub-section (1), any order dismissing either wholly or in part an application made undet sub-section (2) of section 15, or a direction made under subsection (3) or sub-section (4) of that section shall be final" 8 after section 17 of the principal act, the following section shall illiertion of be inserted, namely:-:~:, 17 a s 10 is "17a (1) where at any time after an application has been conditional made under sub-section (2) of section 15 the authority, or where ~}t~=r~~ at any time after an appeal has been filed by an employed person of employer under section l7 the court referred to in that section, is satisfied :~~:er that the employer or other person responsible for the payment ~eponible f d ect· 3' l'k i d f ,or payment o wages un er s ion is 1 e y to eva e payment 0 any of wiles, amount that may be directed to be paid under section 15 or section 17, the authority or the court, as the case may be, after giving the employer or other person an opportunity of being heard, direct the conditional attachment of so much of the property of the employer or other person responsible for the payment of wages as is, in the opinion of the authority or court, sufficient to satisfy the amount which may be payable under the direction, s ef 1901 20 (2) the provisions of the code of civil procedure, 1908, relating to attachment before judgment under that code shall, 10 far as may be, apply to any order for conditional attachment under sub-section (1) ,"  statement of objects and reas6n~by the enactment in 1936 of the payment of wages act,- it "'u intended to ensure that-(i) wages actually disbursable to workers covered by the -act are disbursed within the prescribed wa~eperiod; and (ii) employees get their full wages without any deduct10dl which are not specially authorised by the law the working of the act has shown that the act requiree to be amended in certain respects it is also considered desirable to extend the benefit of the act to a larger category of persons the important proposals relate to raising the wage limit from rs 200/- a month to rs 400/-, extension of the act to construction industry and revision of the definition of the term "wages" the reasons for the amendments are, wherever necessary, given in the notes od c1auhl attached to this bill glnanda new deua; the 19th n01)ember 1957 clause 2 (ii) -the existing wage limit of two hundred rupees was fixed in 1936 the pattern of the earnings of the wage groups intended to be protected by the act has since undergone considerable change accordingly it is proposed to apply the payment of wages act to a person who is employed on wages not exceeding four hundred rupees a month in any establishment covered by the act clause 3 (ii) -construction industry which employs a large number of workers has assumed great importance during recent years owing to the large hydro-electric and power schemes that are under construction the workers in the construction industry engaged in the construction and maintenance of roads, bridges, canals, buildings, or in operations connected with irrigation, navigation or supply of water or generation, transmission and distribution of electricity or any other form of power stand in need of protection   clause 3 (iii) -the existing definition of the term "wages" has given rise to certain practical difficulties particularly in regard to interpretation of certain words used in the definition in some cases the high courts have ruled that the word "wages" did not mean "potential wages" but "wages earned" now-a-ooys the terms of payment under contracts of employment are frequently modified by the awards of tribunals or by the terms of binding settlements the wages revised stautorily through adjudication, arbitration, conciliation or similar statutory process should also be deemed to be wages for purposes of the act the definition of "wages" has accordingly been recast and made comprehensive and clear clause 5 (i) -the question whether reduction in wages, consequent upon any punishments imposed like suspension, stoppage of increments, reduction to lower post or ~ale, etc, would be deductions authorised under the payment of wages act has been a subject of conflicting rulings, by courts of law the intention of government has been that the deductions consequent upon punishments under service rules should be authorised deductions under the act it is, therefore, intended to make it clear that any deduction in wages consequent upon imposition of punishments under the service rules will be authorised deductions under the act clause 5 (ii) -under section 7 (2) (d) of the payment of wages act, deductions for house-accommodation can be made only when the accommodlqtion is supplied by the employer under the subsidised industrial housing scheme of the government of i~dia; state governments construct tenements which are let out to industrial workers on suitable rents to enable easy collection of rent of such tenements, it is proposed to amend the act to enable deduction of rents in such cases from the· wages of the concerned workers clause 5 (iii) -with the nationalisation of life insurance business it has been considered desirable to allow deduction of insuran_ce premia from the wages of employees, at their written authorisation and necessary provision to this effect has been made clause 5 (iii) -the amendment proposed will enable workers to subscribe to government securities like the national plan loan, national cash certificates, and deposits in post office savings banks in pursuance of savings schemes clause 7-dismissal of a claim by an authority was not considered as a "direction" under section 15 and therefore it is proposed to make a provision for an appeal against an order dismissing a claim clause s-recovery in execution of a direction made by an authority under the act takes a long time arrears of wages also do not get sufficient priority in case the concern is wound up to safeguard' the workers' interests in such cases it is proposed to empower the authority to order conditional attachment of the property of the employer or other person responsible for the payment of wages, pending disposal of the application, unless the employer or other person deposits with the authority an amount sufficient to satisfy the claim or gives security for a like amount  annexure - ex~cts from the payment of wages act, 1936- (no 4 of 1936) - - - - - - - lo) ~uili~ stent - - - - - - - - commence meat and application (5) the state government may, after givmg 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 in 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, average two hundred rupees a month or more 2 in this act, unless there is anything repugnant in the subject definitions or context,-25 011934 (i) "fac~ory" 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; - - - - - - - - (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 ~1:jate 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 ~e~pon8i-3 every employer shall be responsible for the payment to ~~~%ent ~fr persons employed by him of all wages required to be paid under wases, j 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, :ls 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 emp!oyer, or the person so nominated, as the case may be, shall be responsible for such payment til                                     til                                                                         -                                                                                                             -                                                                                                                                                 til                                                                                                                                                                                     -  of em- 9 of 1890 any deductions                 7 (1) notwithstanding the provisions of sub-section                                                                                      (2) b~:zay section 47 of the indian railways act, 1890, the wages of an from wages," ployed person shall be paid to him without deductions                                                                                     of             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:-(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; '" '" '" '" '" '" (k) deductions, made with the written authorization of the employed person, in furtherance of any war savings scheme, approved by the state government, for the purchase of securities of the government of india or the government of the united kingdom '" '" '" '" '" '" 14 (1) an inspector of factories appointed under sub-section inspectors 25 of 1934 (1) of section 10 of the factories act, 1934, shall be an inspector for the purposes of this act in respect of all factories within the local limits assigned to him '" '" '" '" '" '" 17 (1) an appeal against a direction made under sub-section appeal (3) or sub-section (4) of section 15 may be preferred, within thirty days of the date on which the direction was made, in a presidency-town before the court of small causes and elsewhere before the district court-(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 compensation exceeds three hundred rupees, or (b) by an employed person, if the total amount of wages claimed to have been withheld from him or from the unpaid group to which he belonged exceeds fifty rupees, or (c) by any person directed to pay a penalty under subsection (4) of section 15 (2) save as provided in sub-section (1), any direction made under sub-section (3) or sub-section (4) of section 15 shall be final - - '" - - '" a  billfurther to amend the payment of wages act, 1936 (shri gulzarilal nanda, mi  ;ster of labour am  employment and planning) 