Dear Abaay,
Referring your specific issues I would appreciate if you look at the pertinent stipulations i.e.:
1. The wage period cannot be more than one month and
2. Even if there is a default it shouldn't be "wilful" . The onus lies with the employer to prove that it's not "wilful".
You might have come across many instances where employers postpone payment of salary (either temporarily or permanently) for various reasons like paucity of funds, "sick"ness, strikes/lockout, closure, merger and demerger and so on (recall recent KFA case). In such cases it is the responsibility of the employer to properly notify the employees and seek permission, in advance, of the concerned authorised Labour Law enforcing authorities such as ALC etc. This will help the employer to escape penal action by them.
In your case it is necessary that you should not err on the wrong side by choosing to defer the salary payment after the due date (might have been fixed by you under due approval of the designated authorities.)because of intervening holiday. The pre-ponement is always safest and appreciable.
With regards,
From India, Bangalore
1077Referring your specific issues I would appreciate if you look at the pertinent stipulations i.e.:
1. The wage period cannot be more than one month and
2. Even if there is a default it shouldn't be "wilful" . The onus lies with the employer to prove that it's not "wilful".
You might have come across many instances where employers postpone payment of salary (either temporarily or permanently) for various reasons like paucity of funds, "sick"ness, strikes/lockout, closure, merger and demerger and so on (recall recent KFA case). In such cases it is the responsibility of the employer to properly notify the employees and seek permission, in advance, of the concerned authorised Labour Law enforcing authorities such as ALC etc. This will help the employer to escape penal action by them.
In your case it is necessary that you should not err on the wrong side by choosing to defer the salary payment after the due date (might have been fixed by you under due approval of the designated authorities.)because of intervening holiday. The pre-ponement is always safest and appreciable.
With regards,
From India, Bangalore
Respected kumar Sir
I do not find fault with abhay bandekar's putting across certain queries to find out the factual position prevailing on the ground realities vis-a-vis the statutory provisions under the relevant legislation.Everybody has certain qualitative professional knowledge, which varies from person to person.The Cite-HR is a platform where we share our views & knowledge. Your mentioning in your mail that "It's puzzling how could there be such queries arises among HR personnel". is absolutely wrong & absurd.By doing this, you are discouraging the new comers or the persons who want to clear their doubts.To think that all the members of the cite-HR are from HR personnel is again incorrect and a wrong concept.By attaching a copy of the Act in the mail does not make a person knowledge enriched.If he law would have been so clear,there would not have been any scope for two lawyers to fight a particular case on a single point of law.We have spend our whole career in HR but still we can not claim that we have mastery over the labour laws.
I regret, in advance, if I have hurt your feelings.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I do not find fault with abhay bandekar's putting across certain queries to find out the factual position prevailing on the ground realities vis-a-vis the statutory provisions under the relevant legislation.Everybody has certain qualitative professional knowledge, which varies from person to person.The Cite-HR is a platform where we share our views & knowledge. Your mentioning in your mail that "It's puzzling how could there be such queries arises among HR personnel". is absolutely wrong & absurd.By doing this, you are discouraging the new comers or the persons who want to clear their doubts.To think that all the members of the cite-HR are from HR personnel is again incorrect and a wrong concept.By attaching a copy of the Act in the mail does not make a person knowledge enriched.If he law would have been so clear,there would not have been any scope for two lawyers to fight a particular case on a single point of law.We have spend our whole career in HR but still we can not claim that we have mastery over the labour laws.
I regret, in advance, if I have hurt your feelings.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Dear Abhay,
As per section 4 of payment of wages act your company should have a fixed a wage period within which the same should be paid.
As per section 5 of the same act subsection
(a) any railway, factory or 1*[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,
(b) any other railway, factory or 1*[industrial or other establishment], shall be paid before the expiry of the
tenth day, after the last day of the wage-period in respect of which the wages are payable.
i.e. suppose you are you calculate the wage period as 1st of every month to 30th or 31st of that month then the wages should be paid on or before the 7th or 10th day of the subsequent month as the case may be.
So it should not be a worry the salary day falls on a holiday or not. Only thing you have to see is whether the above stipulated period of 7th or 10 day as the case may be is followed.
From India, Hyderabad
As per section 4 of payment of wages act your company should have a fixed a wage period within which the same should be paid.
As per section 5 of the same act subsection
(a) any railway, factory or 1*[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,
(b) any other railway, factory or 1*[industrial or other establishment], shall be paid before the expiry of the
tenth day, after the last day of the wage-period in respect of which the wages are payable.
i.e. suppose you are you calculate the wage period as 1st of every month to 30th or 31st of that month then the wages should be paid on or before the 7th or 10th day of the subsequent month as the case may be.
So it should not be a worry the salary day falls on a holiday or not. Only thing you have to see is whether the above stipulated period of 7th or 10 day as the case may be is followed.
From India, Hyderabad
Dear Abhay,
With regards to your concerns about the emi's of employees, I would like to inform you that it is not mandatory for the employer to release the salary prior to the date of salary if it falls on a holiday but to only see to that it is paid within the stipulated time as per section 5a/b of payment of wages act.
However if the last day of the payment of wages falls on a holiday then yes definitely the employer has to make the payment on the last working day prior to the holiday.
From India, Hyderabad
With regards to your concerns about the emi's of employees, I would like to inform you that it is not mandatory for the employer to release the salary prior to the date of salary if it falls on a holiday but to only see to that it is paid within the stipulated time as per section 5a/b of payment of wages act.
However if the last day of the payment of wages falls on a holiday then yes definitely the employer has to make the payment on the last working day prior to the holiday.
From India, Hyderabad
Dear Friend
As per PAYMENT OF WAGES ACT, 1936:-
The wages of every person employed be paid:
1) When less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month.
2) When more than 1000 workers, before the expiry of the 10th day of the following month.
Applicability of Act
1) Factories, industrial Establishments, Tramway service or motor transport service, Air transport service, Dock, Wharf or Jetty, Inland vessel, Mine, quarry or oil-field Plantation, Workshop, construction activities or other establishment etc.
2) In the state of Maharashtra the Act is extended to Shops & commercial establishments
From India, Mumbai
As per PAYMENT OF WAGES ACT, 1936:-
The wages of every person employed be paid:
1) When less than 1000 persons are employed shall be paid before the expiry of the 7th day of the following month.
2) When more than 1000 workers, before the expiry of the 10th day of the following month.
Applicability of Act
1) Factories, industrial Establishments, Tramway service or motor transport service, Air transport service, Dock, Wharf or Jetty, Inland vessel, Mine, quarry or oil-field Plantation, Workshop, construction activities or other establishment etc.
2) In the state of Maharashtra the Act is extended to Shops & commercial establishments
From India, Mumbai
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