stephen_7
148

Hi,
Our management is asking to hold the salaries for the workers for another 5 days. We have been paying salaries on or before 7th of every month. Now a days factory production is dull. so, it became very difficult to arrange funds for their salaries. They said it will continue for another 6 months. Is there any provision in the act to get permission for the same from Inspector of factories?
Please advice.
Thanks,
Stephen

From India, Chennai
Harshil Patel
28

Generally where the strength of workers is less than 1000 than on or before 7th of each month is the guideline given by state govt. where strength is more than 1000, in that case on or before 10th of each month is the guideline given by state govt. Please follow rules, otherwise labour can register complaint to labour court, under payment of wages act.
From Singapore
stephen_7
148

Yes. Labors would be able go to labour court. But, can company get permission to pay salaries on or before 15th of every month for next six months?
Company was paying salaries on time (7th) in the past 30 years.

From India, Chennai
murasolihasini@yahoo.in
1

Dear Stepen ,
There is no chance to stop the payment for employees.
Every month all the industries should have to pay.
You can take the benefits form there allowance cutting process there is no demand on that.
Other way you can take there bonus according for year ending base calculating as six months base there is loop on that.
Kindly consider the employees EPF and ESIC there is norms of pay. So you can take a path in allowance and additional beneficiary for cutting the amount.
M.Murasolimaran
Sr.Hr
Crew(P)Ltd.,

From India
stephen_7
148

Thanks Mr. Murasolimaran. so, can we pay Bonus + DA before 7th and remaining can be paid before 15th?
Management does not want to cut their allowances, as they have raised their salaries few months back only. Due to the market situation, Management was not able to pay their full salaries on date. At the same time, they wanted to be clear in legal issues.
We have paid full bonus with some exgratia and statutory payments will go on time.
Thanks,
Stephen

From India, Chennai
naresh0597
Change the perspective of looking at this situation - Salary has to be paid once every 30 / 31 days. What difference does it make to the management. If the company finances are under pressure or not, salary outgo will be there every 30/31 days.
Payment date is immaterial, in fact salary should be paid a few days before the month ends, workers get motivated.

From India, Mumbai
dmc554@gmail.com
22

dear mr stephen,
Are all the employees covered under Payment of Wages Act ie drawing less than Rs 15000/- salary? If so, Payment of wages act will apply and you have to follow the provision of paying by 7th of each month.

From India, Pune
stephen_7
148

I wanted to know that due to the tough situation, can company pay Basic + DA on or before 7th. and remaining allowances can be paid between 10th to 15th for next six months.?
I think payment of wages act will be applicable for the salary less than Rs. 10,000/-. ESIC limit is 15k

From India, Chennai
loginmiracle
362

Dear friend,
Wages have to be paid on or before 10th of every month. For any delay you should inform employees, put up circular on Notice Board after obtaining permission from the Recognised Union, ALC before hand explaining the circumstances leading to the delay and indicate the tentative date of payment. However there cannot be any delay in remittance of EPF & ESI contributions. Any delay in these result in penalty/interest. If possible part salary also could be disbursed before the due date. Also it may be possible to change the payment date with due agreement with Union & ALC to suit your availability of funds(once in 30/31 days). Pl.refer payment of Wages Act.
kumar.s.

From India, Bangalore
9871103011
455

Dear Mr. Stephen

The Govt of India, Ministry of Labour, has revised the ceiling limit under Payment of Wages,1936 from 6500/ to 10,000/- from 8th August 2007 vide their notification S.O.No.1380(E).Sh Harshil Patel has rightly pointed out the if strength of workers is less than 1000 than the payment has to be made on or before 7th of each month and where strength is more than 1000, in that case on or before 10th of each month under Section 5 of the Payment of Wages,1936. Though the appropriate Govt is empowered to exempt the above conditions of payment of wages of certain class of persons but in practice such permission is never granted as such it will be a futile exercise to approach the govt.

As regards your query as to whether the company can pay Basic + DA on or before 7th. and remaining allowances can be paid between 10th to 15th for next six months, please go through the definition of wages under the Act which includes all remuneration( whether Salary,allowances or otherwise) expressed in terms of money....

From India, Mumbai
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