Wage-Related Labour Legislations             

Legislations laying down the technique and manner of wage payment and the minimum wages come under this category:

1. The Payment of Wages Act, 1936

The Act is planned to regulate payment of wages in a specific form at regular intervals without any unauthorised deduction. It is applicable to the workers who receiving wages below Rs.1, 600 per month. As per the Act, employer are responsible for payment of wages to the workers duly setting the wage periods (which in no case should exceed one month), deciding regarding time of payment as per the norms (which needs payment within seven days of the expiry of the wage period for establishment where less than 1,000 persons are working and in other cases within ten days of the expiry of wage period), mode of payment or (by cheque or in cash or by crediting to employee's bank account with prior consent) and ensuring no unauthorised deductions. All of these aspects ought to be known to the HR manager.

2. The Minimum Wages Act, 1948

The Act provides for minimum statutory wages for scheduled employ. The Act also stipulates maximum everyday working hours, weekly rest & overtime. It prevails over the fixed rates under any award agreement. The Act provides powers to the State Government to set minimum wages, failing in which they cease the power to engage labour & run the industry. Wages, as per the Act, include all of the remuneration capable of being expressed in terms of money by including house rent allowance. Though, it excludes the value of housing accommodation, water, supply of light, employer's contribution to provident fund, medical attendance, and travelling allowances, pension fund or the value of travelling allowance, gratuity payable on discharge or any other payments made to defray special payment. For HR managers it is significant to consider all of these aspects when designing compensation package.

3. The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965 impose legislative liability on employers (who covered under the Act) to pay bonus to workers according to the preset formula, linking the bonus with productivity or profits. Bonus is payable to all of employee receiving wages or salary up to Rs. 3,500 per month, provided the worker has worked at least for 30 days in that year, save & except those workers who have been dismissed from service for riotous or violent behaviour, fraud , theft, sabotage or misappropriation of any property of the establishment. Such employees cease the right to obtain bonus even for earlier unpaid years, irrespective of the actuality that they have committed such acts in the current year. Employer might deduct from the bonus any customary payment made to the workers (interim bonus or festival) earlier. Employers might also recover any particular financial loss caused for the misconduct of the workers.