Payment of Wages Act, 1936 Pakistan: A Comprehensive Guide to the Labour Law
The Payment of Wages Act, 1936 (PW Act) is a labor law in Pakistan that regulates the payment of wages to certain classes of persons employed in any factory, industrial establishment or commercial establishment. The Act was enacted by the British colonial government in 1936 and has since been amended several times.
Who is covered by the PW Act?
The PW Act applies to the following classes of persons:
- Persons employed in any factory
- Persons employed by a railway administration
- Persons employed by a contractor to a railway administration
The Act can be extended by the Provincial Government to any other class of persons or establishments after giving three months' notice.
What are the provisions of the PW Act regarding the payment of wages?
The PW Act lays down the following provisions regarding the payment of wages:
- Wages must be paid in current coin or currency notes or in both.
- Wages must be paid before the expiry of the 10th day of the wage period, unless the wage period is less than 7 days, in which case wages must be paid before the expiry of the 7th day of the wage period.
- Wages must be paid on a working day.
- Deductions from wages are only allowed for the following purposes:
- Fines imposed by the employer for breach of discipline
- Recovery of advances of money given to the employee before employment began
- Recovery of loans or dues recoverable under any law
- Payment of taxes, imposts or other charges
- Payment of provident fund contributions
- Payment of deductions authorized by the employer's standing orders
What are the penalties for non-compliance with the PW Act?
The PW Act also provides for penalties for non-compliance with its provisions. The penalties include fines of up to Rs. 500 for individuals and Rs. 2,000 for companies.
What are the benefits of the PW Act?
The PW Act is an important piece of labor legislation in Pakistan that protects the rights of workers to be paid their wages on time and in full. The Act also helps to ensure that workers are not subjected to unfair deductions from their wages.
Here are some of the key benefits of the PW Act:
- It ensures that workers are paid their wages on time and in full.
- It protects workers from unfair deductions from their wages.
- It helps to prevent wage theft.
- It provides a mechanism for workers to seek redress if their wages are not paid in accordance with the law.
Conclusion
The PW Act is an important tool for protecting the rights of workers in Pakistan. It is essential that employers comply with the provisions of the Act to ensure that their employees are treated fairly.