Dear Abaay,
Regarding your specific issues, I would appreciate it if you could review the pertinent stipulations, namely:
1. The wage period cannot exceed one month.
2. Even in the case of a default, it shouldn't be considered "wilful". The onus lies with the employer to prove that it's not "wilful".
You may have encountered situations where employers postpone salary payments (either temporarily or permanently) due to reasons such as a lack of funds, sickness, strikes/lockouts, closures, mergers, demergers, and so on (recollect the recent KFA case). In such instances, it is the employer's responsibility to notify employees properly and obtain permission in advance from relevant authorized labor law enforcement authorities such as ALC, etc. This proactive approach will help the employer avoid punitive actions.
In your situation, it is essential that you do not make the mistake of delaying salary payments past the due date (which may have been set by you with the necessary approval of designated authorities) due to intervening holidays. Bringing forward the payment is always the safest and most commendable option.
With regards,
From India, Bangalore
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1157Regarding your specific issues, I would appreciate it if you could review the pertinent stipulations, namely:
1. The wage period cannot exceed one month.
2. Even in the case of a default, it shouldn't be considered "wilful". The onus lies with the employer to prove that it's not "wilful".
You may have encountered situations where employers postpone salary payments (either temporarily or permanently) due to reasons such as a lack of funds, sickness, strikes/lockouts, closures, mergers, demergers, and so on (recollect the recent KFA case). In such instances, it is the employer's responsibility to notify employees properly and obtain permission in advance from relevant authorized labor law enforcement authorities such as ALC, etc. This proactive approach will help the employer avoid punitive actions.
In your situation, it is essential that you do not make the mistake of delaying salary payments past the due date (which may have been set by you with the necessary approval of designated authorities) due to intervening holidays. Bringing forward the payment is always the safest and most commendable option.
With regards,
From India, Bangalore
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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 "[B]It's puzzling how could there be such queries arises among HR personnel" is absolutely wrong & absurd. By doing this, you are discouraging the newcomers or the persons who want to clear their doubts. To think that all the members of the Cite-HR are HR personnel is again incorrect and a wrong concept. By attaching a copy of the Act in the mail does not make a person knowledgeable. If the 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 spent our whole career in HR but still, we cannot claim that we have mastery over the labor laws.
I regret, in advance, if I have hurt your feelings.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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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 "[B]It's puzzling how could there be such queries arises among HR personnel" is absolutely wrong & absurd. By doing this, you are discouraging the newcomers or the persons who want to clear their doubts. To think that all the members of the Cite-HR are HR personnel is again incorrect and a wrong concept. By attaching a copy of the Act in the mail does not make a person knowledgeable. If the 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 spent our whole career in HR but still, we cannot claim that we have mastery over the labor laws.
I regret, in advance, if I have hurt your feelings.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Depends on management decision whether to give early or later when such situation arise (their prerogative right)
From Saudi+Arabia, Dammam
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From Saudi+Arabia, Dammam
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Dear Abhay,
As per Section 4 of the Payment of Wages Act, your company should have a fixed wage period within which the same should be paid. According to Section 5 of the same act:
(a) Any railway, factory, or *[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 *[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.
In other words, suppose you calculate the wage period as the 1st of every month to the 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. Therefore, it should not be a concern whether the salary day falls on a holiday or not. The only thing you have to ensure is whether the above stipulated period of 7th or 10th day, as the case may be, is followed.
From India, Hyderabad
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As per Section 4 of the Payment of Wages Act, your company should have a fixed wage period within which the same should be paid. According to Section 5 of the same act:
(a) Any railway, factory, or *[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 *[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.
In other words, suppose you calculate the wage period as the 1st of every month to the 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. Therefore, it should not be a concern whether the salary day falls on a holiday or not. The only thing you have to ensure is whether the above stipulated period of 7th or 10th day, as the case may be, is followed.
From India, Hyderabad
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Dear Abhay,
With regards to your concerns about the EMIs 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 only to ensure that it is paid within the stipulated time as per Section 5(a)/(b) of the 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
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With regards to your concerns about the EMIs 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 only to ensure that it is paid within the stipulated time as per Section 5(a)/(b) of the 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
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Dear Friend,
As per the Payment of Wages Act, 1936, the wages of every person employed should be paid as follows:
1) When fewer than 1000 persons are employed, the wages shall be paid before the expiry of the 7th day of the following month.
2) When more than 1000 workers are employed, the wages should be paid before the expiry of the 10th day of the following month.
Applicability of the 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 establishments, etc.
2) In the state of Maharashtra, the Act is extended to shops, commercial establishments, and other related entities.
From India, Mumbai
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As per the Payment of Wages Act, 1936, the wages of every person employed should be paid as follows:
1) When fewer than 1000 persons are employed, the wages shall be paid before the expiry of the 7th day of the following month.
2) When more than 1000 workers are employed, the wages should be paid before the expiry of the 10th day of the following month.
Applicability of the 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 establishments, etc.
2) In the state of Maharashtra, the Act is extended to shops, commercial establishments, and other related entities.
From India, Mumbai
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