Updated: Tuesday May 06, 2014/AthThulatha Rajab 07, 1435/Mangalavara Vaisakha 16, 1936, at 12:18:52 PM

The Payment of Wages (Federal Railways) Rules, 1938

[Published in the Gaz. of India, Deptt. of Labour Noti. No. L-3070 (1), 5th May, 1938.]

1. Title. [Inserted by Noti. L-1785 (2), dt. the 27th Nov. 1941, see Gazette of India, 1941, Pt. I. 1746.] [extent] and application.--(1) These rules may be called the Payment of Wages (Federal Railways) Rules, 1938.

(2) These rules apply in respect of the payment of wages to persons employed upon any federal railway (including factories) by or under a Railway administration or by a contractor employing on the average 20 or more persons daily in any one month in the preceding 12 months.

[Inserted by Noti. L-1785 (2), dt. the 27th Nov. 1941, see Gazette of India, 1941, Pt. I. 1746.] [(3) These rules extend to the whole of [Pakistan] [Substituted for “British India, including Berar” Gaz. of Pakistan. Pt. I. p. 3811.].

2. Definitions.--- In these rules, unless there is anything repugnant in the subject or context,---

(a)    “the Act” means the Payment of Wages Act (IV of 1936);

(b)    “the Authority” means the authority appointed under sub-section (1) of section 16 of the Act ;

(c)    “the Court” means the court mentioned in sub-section (1) of Section 17 of the Act;

(d)    “deduction for breach of contract” means a deduction made in accordance with the provisions of the proviso to sub-section (2) of section 9;

(e)     “deduction for damage or loss” means a deduction made in. accordance with the proviso of clause (c) of sub-section (2) of section 7;

(f)      “Federal Railway” has the same meaning ac in the Government of India Act, 1935;

(g)    “Form” means a form appended to these rules;

(h)    “Inspector” means an inspector authorized by or under section 14 of the Act;

(i)     “person employed” does not include any person to the payment of whose wager the Act does not apply,---

(j)     “section” means a section of the Act;

(k)    “paymaster” means the railway administration or other person or persons who may be nominated as such by the Railway Administration under clause (c) of section 3, and in the case of a person employed by a contractor, the contractor;

(l)     [Substituted by Noti. No. L‑3070 (3), dated the 16th May, 1940, see Gazette of India, 1940, Pt I, p. 759.] [“the supervisor” means the officer called “Conciliation Officer (Railways) and Supervisor of Railway Labour appointed by the [Subs. for “Central Government” by P.O. 4 of 1975. Art. 2 (3).] [Federal Government.]

(m)   “contractor” means a person fulfilling, either directly or through a sub-contractor, a contract with a ' Railway Administration;

(n)    “employer” means the Railway Administration, and in the case of persons employed by a contractor, the contractor;

(o)    words and expressions defined in the Act shall be deemed to have the same meaning as in the Act.

3. Register of Fines.-- (1) On any railway where the employer has obtained approval under sub-section (1) of section 8 to a list of acts and omissions in respect of which fines may be imposed, the paymaster shall maintain a Register of Fines in Form 1.

(2) At the beginning of the Register of Fines there shall be entered, serially numbered, the approved purpose or purposes on which the fines realized are to be expended.

(3) When any disbursements are made from the fines realized, a deduct entry of the amount so expended shall be made in the Register of Fines, and a voucher or receipt in respect of the amount shall be affixed to the Register. If more than one purpose has been approved the entry of the disbursement shall also indicate the purpose for which it is made.

4. Register of deductions for damage or loss.--- On every railway in which deductions for damage or loss are made the paymaster shall maintain the Register required by subsection (2) of section 10 in Form II.

5. Register of Wages.--- A Register of Wages shall be maintained by every employer and may be kept in such form as the paymaster finds convenient but shall include the following particulars:

(a)  the gross wages of each person employed for each wage-period;

(b)  all deductions made from those wages, with an indication, in each case, of the clause of sub-section (2) of section 7 under which the deduction is made;

(c)  the wages actually paid to each person employed for each wage period and the date of payment.

6. Maintenance of Registers.-- The registers required by rules 3, 4 and 5 shall be preserved for twelvemonths after the date of the last entry trade in there.

The registers shall normally be maintained in English but where they are maintained in any other language than English, a true translation thereof in English shall be available.

7. Places for displaying notices.--The Supervisor shall specify such place or places on the railway, other than factories, as he thinks fit (hereinafter referred to as “specified place” or “specified places”) for the display of notices, lists  and rules 8, 12 and 16.

8. Notice of dates of payment.--- The paymaster shall display, in a conspicuous place at or near the main entrance of every factory in his jurisdiction and at the specified places, a notice, in English and in the language of the majority of the persons employed at such factories or places showing for not less than two months in advance, the days on which wages are to be paid.

9. Prescribed authority.--- The Supervisor shall be the authority competent to approve, under sub‑section (1) of section 8, acts and omissions in respect of which fines may be imposed and, under sub-section (9) of section 8, the purposes to which the proceeds of fines shall be applied.

(10). Application in respect of fines.--- Every employer requiring the power to impose fines in respect of any acts and omissions on the part of employed persons shall send to the Supervisor,---

(a)    a list; in English, in duplicate clearly defining such acts and omissions;

(b)     in cases where the Railway Administration himself does not intend to be the sole authority empowered to impose fines, a list, in duplicate, showing, by virtue of office, such of his officers as may pass order imposing fines and the class of establishment on which any such officer may impose fine.

11 Approval of list of acts and omissions.--- The Supervisor may, on receipt of the list prescribed in sub‑rule (a) of rule 10, and after such enquiry as he considers necessary, pass orders in respect of the list referred to in clause (a) of rule 10 either,---

(a)    disapproving the list;

(b)    approving the list either in its‑original form or as amended by him, in which case such list shall be deemed to have been approved under sub‑section (1) of section 8.

Provided that no order disapproving or amending the list shall be passed unless the employer shall have been given an opportunity of showing cause orally or in writing against such order.

12. Posting of list.--- The employer shall display at or near the main entrance of every factory, and at the specified place or specified places, a copy in English, together with a literal translation thereof in the language of the majority of the persons employed at snob factory or place, of the list of acts and omissions approved by the authority prescribed under Rule 9.

13. Persons authorised to impose fines.--- (1) No fine may be imposed upon a person, employed by a Railway Administration, by any person other than “ho Railway Administration, or by a person holding an. appointment named in the list referred to in clause (b) of rule 10.

(2) In the case of persons employed by a contractor, no fines may be imposed by any person other titan the contractor:

Provided that a contractor who runs more than one establishment in two or more localities and who employs not less than 50 persons in one locality, may with the approval of the Supervisor, delegate his power to fine to his represen­tative in that locality:

14. Procedure in imposing fines and deductions.--- (1) No fine shall tie imposed on and no deductions made from a, person employed by a Railway Administration except in accordance with the procedure laid down in the rules and regulations in force on the Railway Administration, and no fine shall be imposed or deduction trade until the employed person has beat given err opportunity of showing cause against such imposition or deduction.

(2) No fire shall be imposed on and tm deduction for damage or loss shall be made from the wages of a person employed by, a constructor until the person authorized to impose the fine or make the deduction has explained personally tar the said person the act or omissions or damage or loss, in respect of which the fine or deduction is proposed to be imposed and the amount of the fine or deduction which it is proposed to impose and has heard his explanation in the presence of at least one other person.

15. 1nforntation to paymaster.--- The person imposing a fine or directing the making of deduction for damage or loss shall (unless such person is a paymaster) at once inform the paymaster of all particulars necessary for the corruption of the register prescribed in Rule 3  or Rule 4, as the case may be.

16. Deduction under the proviso to sub-section (2) of section 9.--- (1) No deduction under the proviso to sub-section (2) of section 9 shall be made from the wages of an employed person who is under the age of fifteen years or is a woman.

(2) (a) No such deduction shall be made froth the wages of any employed person unless,---

(i) the period of this notice does not exceed fifteen days or the wage period, whichever is less; acid

(ii) the period of this notice; does not exceed the period of notice which the employer is required to give of the termination of tire employment;

(b) this rule has been displayed in English and in the language of the majority of the employed persons at or near the stain entrance of the factory; and at the specified place or specified places concerned, and has been so displayed for not less than one month before the commencement of the absence in respect of which the deduction is made;

(c) a notice has been displayed at or near the main entrance of the factory, and at the specified place or specified places concerned giving the names of the persons from whom the deduction is proposed to be made, the number of days' wages to be deducted and the conditions (if any) on which the deduction will be remitted:

Provided that where the deduction is proposed to be made from all the persons employed in any departments or sections or factories of the railway, it shall be sufficient, in lieu of giving the names of the persons in such departments, sections, or factories to specify the departments, sections or factories affected.

(3) No such deduction shall exceed the wages of the person employed for the period by which the notice of termination of service given falls short of the period of such notice required by the contract of employment.

(4) If any conditions have been specified in the notice displayed under clause (c) of sub-rule (2), no such deduction shall be made from any person who has complied with such conditions.

[Subs. for the original Rule vide Min. of Health & Social Welfare Noti. S. R O. 426 (k) of 11 April 1960, Gaz. of Pak. Pt. J, 22 April 1960, p. 186.] [17. Annual Return.--- Every Railway Administration in which during the year ending the 31st December any fines have been imposed or any deductions for breach of contract or for damage or loss have been made from ages, shall send a return in Form III so as to reach the Supervisor not later than the 15th February, following the end of, the year to which it relates.]

18. Advances to persons employed by a contractor.--- (I) An advance of wages not already earned shall not ordinarily exceed the amount equal to two calendar months wages of the employed person. In exceptional cases the amount of such advance may, with the previous sanction of the Supervisor, be made to the extent of four calendar months wages.

(2) the advance may be recovered In installments by deductions from wages spread over not more than 12 months in the case of ordinary advance and 20 months in the case of special advance. In no case shall the amount of installment exceed 1/4th of the wages earned in one month.

(3) The amounts of all advances sanctioned and the repayments thereof shall be entered in a register in Form V.

19. Procedure, costs and court. fees.--- The procedure to be followed by the authorities appointed under sub‑section (1) of section 15 and the Courts mentioned in sub‑section (1) of section 17 of the Act, the scales of costs which may be allowed in, and the amount of court‑fees payable in respect of pro­ceedings under the Act to which these rules apply shall be such procedure, scales and amounts as are from time to time prescribed by the Provincial Government in the exercise of its powers under the Act in that behalf for the Authority or Court concerned.

20. Abstracts.--- The abstracts of tae Act and of the rules made there under to be displayed under section 15 shall be in Form IV.

21. Penalties.‑-- The breach of rules 3. 4, 5, 6, .8, 12, 15 and 17 of these rules shall be punishable with fine which may extend to two hundred rupees.

FORM I---Register of fines

Railway Department / Division / District / Factory

Serial No.

Name.

Father's name.

Department.

Act or Omission for which fine imposed

Whether worker showed cause against fine

or not.

If

so

enter date.

Rate of wages

Date and amount of fine imposed.

Date on which fine realised.

Remarks

1

2

3

4

5

6

7

8

9

10

FORM II—Register of Deductions for Damages or Loss caused to the Employer by the Neglect or Default of the Employed Persons

Railway Department / Division / District / Factory

Serial No.

Name.

Father's name.

Department.

Damage or loss caused.

Whether worker showed cause against deduction or not.

If

so

enter date.

Date and amount of deduction imposed

Nos. of installments if any.

Date on which fine realised.

Remarks

1

2

3

4

5

6

7

8

9

10

Deductions from Wages

FORM III‑Return for the year ending 31st March, 19.

1. Name of Railway and Postal address of headquarters.

Children

2. Total number of persons employed                            Adults

3. Total wages paid.

4. Number of cases and amounts realized as‑--

 

No. of Cases                           

Amounts

(a) Fines           ...         …        …        …

(b) Deductions for damage or loss         ...

(c) Deductions for breach of contract    ...

 

Rs.

Signature

Designation

Date                             19

FORM IV--- Abstract of the Payment of Wages Act, 1936, and the Rules made there under.

1. Whom the Act affects.--- The Act applies to the payment of wages to persons in this factory receiving less than Rs. 200 a month.

2. No employed person can give up by contract or agreement his rights under the Act.

3. Definition of Wages.--- ”Wages” means all remuneration payable to an employed person on the fulfillment of his contract of employment.

It includes bonus and any sum payable for want of a proper notice of discharge.

It excludes--- (a) the value of house-accommodation, supply of light, water, medical attendance, or other amenity or of any service excluded by the Central Government: (b) the employer's contribution to a pension or provident fund: (c) travelling allowance or concession or other special expenses entailed by the employment; (d) any gratuity payable on discharge.

4. Responsibility for arid method of payment.--- The manager of the factory is responsible for the payment under the Act of wages to persons employed under him, and any contractor employing persons is responsible for payment to the persons he employ;

5. Wage-periods shall be fixed for the payment of wages--- at intervals not exceeding ore month.

6. Wages shall be paid on a working day within 7 days ref the end of the wage-period (or within 10 days if 1,000 or more persons are employed).

The wages of a person discharged shall be paid not later than the second working day after his discharge.

7. Payments in kind are prohibited.

8. Trines and deductions.--- No deductions shall be made from wages except those authorized under the Act (see paragraph 9-15 below).

9. (1) Fines can be imposed only for such acts and omissions as the employer may, with the previous approval of the Supervisor, specify by a notice displayed at or near the main entrance of the factory and after giving the employed person an opportunity for explanation.

(2) Fines.--- (a) shall not exceed half-an-anna in the rupee; (b) shall not be recovered by installments; or later than sixty days of the date of imposition; (b) shall be recorded in a register and applied to such purposes beneficial to the employed persons as approved by the Supervisor; (d) shall not be imposed on a child.

10. (a) Deductions for absence from duty can be made only on account of the absence of the employed person at times when he should be working and such deductions must not exceed an amount which is in the same proportion to his wages for the wage-period, as the time he was absent in that period is to the total time he should have been at work.

(b) If ten or more employed persons, acting in concert, absent themselves without reasonable cause and without due notice, the deduction for absence can include wages for eight days in lieu of notice, but,---

(1)        no seduction for breaking a contract can be made from a person under 15 or a woman,

(2)        there must be a provision in writing which forms part of the contract of employment, requiring that a specific period of notice of intention to cease work not exceeding 15 days or the period of notice which the employer has to give to discharge a worker, must be given to the employer and that wages may be deducted in lieu of such notice.

(3)        the above provision must be displayed at or near the main entrance of the factory,

(4)        no deduction of this nature can be made until a notice that this deduction is to be made has” been posted at or near the main entrance of the factory,

(5)        no deduction must exceed the wages of the employed person for the period by which the notice he gives of leaving employment is less that the notice he should give under his contract.

11. Deductions can be made for damage to or loss of goods expressly entrusted to an employed person or for loss of money for which he is required to account, where such damage or loss is due to his neglect or default.

Such deduction cannot exceed the amount of the damage or loss caused and can be made only after giving the employed person an opportunity for explanation.

12. Deductions can be made, equivalent to the value thereof, for house accommodation, amenities, or services (other than tools and raw material) supplied by the employer provided these are accepted by the employed person as a part of the terms of his employment and have in the case of amenities and services been authorized by order of the Central Government.

13. (a) Deductions can be made for the recovery of advances, or for adjustment of overpayment pf wages.

(b) Advances made before the employment began can only be recovered from the first payment of wages for a complete wage-period but no recovery can be made of advance given for travelling expenses before employment began.

(c) Advances of unearned wages can be made at the paymaster's discretion during employment.

14. Deductions can be made for subscription to and for repayment of advances from any recognized provident fund.

15. Deduction can be made for payments to co-operative societies appro­ved by the Central Government or to the postal insurance, subject to any conditions imposed by the Central Government.

16. Inspections.--- An Inspector can enter on any premises, and can exercise powers of inspection (including examination of documents and taking of evidence) as he may deem necessary for carrying out the purposes of the Act.

17. Complaints of deductions or delays.--- (1) Where,, irregular-deductions are made from wages, or delay in payment takes place, an employed person cart snake an application in the prescribed form ,within 6 months to the Authority appointed by the Provincial Government for the purpose. An application delayed beyond this period may be rejected unless sufficient cause for the delay is shown.

(2) Any legal practitioner, official of a registered trade union, Inspector under the Act, or other person acting with the permission of the Authority can make the complaint on behalf of an employed person.

(3) A single application may be presented by, or on behalf of, any number of persons belonging to the same factory, the payment of whose wages has been delayed.

18. Action by the authority.--- The Authority tray award compensation to the employed person in addition to ordering the payment of delayed wages or the refund of illegal deductions.

If a malicious or vexatious complaint is made, the authority may impose a penalty not exceeding Rs. 50 on the applicant and order that it he paid to the employer.

19. Appeal against the Authority.--- An appeal in the prescribed form against a direction made by the Authority may be preferred within 30 day; to the District Court‑

(a) by the paymaster, if the total amount directed to be paid exceeds Rs. 300;

(b) by an employed person, if the total amount .of wages withheld from him or his co-workers, exceeds Rs. 50; (c) by a person directed to pay a penalty for a malicious or vexatious application.

20. Punishment for breaches of the Act.---Anyone delaying the payment of wages beyond the due date, or making any un-authorized deduction from wages is liable to a fine up to Rs. 500, but only if prosecuted with the sanction of the Authority or the appellate Court.

21. The paymaster who,---

(1) does not fix a wage-period, or (2) makes payment in kind, or (3) fails to display at or near the main entrance of the factory this Abstract in English and in the language of the majority of the employed persons, or (4) breaks certain rules made under the Act, is liable to a fine not exceeding Rs. 200.

A complaint to this effect can be made only by the Inspector, or with his sanction.

FORM V--‑Register of advances made to employed persons

Serial No.

Name.

Father's name.

Department.

Date and amount of advance made.

Purpose (s) for which advance made.

Number of installments by which advance to be repaid

Postponements granted

Date on which total amount repaid.

Remarks

1

2

3

4

5

6

7

8

9

10

Payment of Wages Act, 1936

West Pakistan Payment of Wages Rules, 1960

Payment of Wages (Procedure) Rules, 1937

 

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