Sandeep (Business) 31 December 2009

Payment of Wages Act

This is urgent. We are a firm into IT and ITES. We are 100% Export Oriented Unit. One of our employees has filed a case against us in front of Asst Labour Commissioner under Payment of Wages Act. My questions are:-

1. As an IT firm and a 100% EOU are we covered under this act?

2. Under Payment of Wages Act can an emplyee getting salary of more than Rs 12000 per month file a case in the court of Asstt Labour Commissioner?

I hope for an early reply.

Regards

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7 Replies

Sunita Lad (Advocate and Consultant) 31 December 2009

The provisions of Payment of Wages Act is applicable to employees drawing salary upto 10,000/-pm. You mayraise jurisdictional objection.The complaint will not be maintainable.

1 Like

Sandeep (Business) 31 December 2009

What is the definition of salary under this? in this case, the employee got the following per month:-

Basic 5783

HRA 2313

Medical 1250

Conveyance 800

Bonus 7436

Sandeep (Business) 31 December 2009

What is the definition of salary under this? in this case, the employee got the following per month:-

Basic 5783

HRA 2313

Medical 1250

Conveyance 800

Academic Allowance 5000

Bonus 7436

Sunita Lad (Advocate and Consultant) 31 December 2009

Wages under the Payment of Wages Act mean all remuneration expressed in terms of money or capable of being expressed in terms of money and includes payment by way of salary, allowances or otherwise. If bonus paid by you is a part of remuneration and is paid monthly, and not as an additional remuneration, then it would be included in the term wages.

1 Like

Vijayarajan (Executive Director) 01 January 2010

Dear Sir,

The employee drawing more than Rs 10000/- pm as salary is not covered under this act.The above ceiling was 1600/- and then 6500/-.Now the Govt. has raised the applicability to 10000/- by a notification.

Regards,

Vijayarajan