ACT NO. IV OF 1936
[23rd April, 1936]
An Act to regulate the payment of wages to certain classes of persons employed in industry. WHEREAS it is expedient to regulate the payment of wages to certain classes of persons employed in industry; It is hereby enacted as follows : For Statement of Objects and Reasons, see Gazette of India, 1935, Pt.V, p.20; and for Report of Select Committee, see ibid., pp.7779. This Act has been extended to (i) the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order, 1950 (G.G.O.3 of 1950); and applied in the Federated Areas of Baluchistan, see Gazette of India, 1937, Pt.I, p.1499, (ii) the Khairpur State, see the Khairpur (Federal Laws) (Extension) Order, 1953 (G.G.O.5 of 1953) as amended, (iii) the Baluchistan State Union, see the Baluchistan States Union (Federal Laws) (Extension) Order, 1953 (G.G.O.4 of 1953),as amended, and (iv) the State of Bahawalpur by the Bahawalpur (Extension of Federal Laws) Order, 1953 (G.G.O.11 of 1953),as amended. The Act has been and shall be deemed to have been brought into force in Gwadur with effect from 8th September, 1958, by the Gwadur (Application of Central Laws) Ordinance, 1960 (37 of 1960), s.2. The Act has been applied to the Provincially Administered Tribal Areas or to the parts or those areas to which it does not already apply, see, Regulation No. I of 1972, s.2 and Sch..
1. Short title, extent, commencement and application. 2. Definitions. 3. Responsibility for payment of wages. 4. Fixation of wageperiods. 5. Time of payment of wages. 6. Wages to be paid in current coin or currency notes. 7. Deductions which may be made from wages. 8. Fines. 9. Deductions for absence from duty. 10. Deductions for damage or loss. 11. Deductions for services rendered. 12. Deductions for recovery of advances. 13. Deductions for payments to cooperative societies and insurance schemes. 14. Inspectors. 15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims. 16. Single application in respect of claims from unpaid group. 17. Appeal. 18. Powers of authorities appointed under section 15. 19. Power to recover from employer in certain cases. 20. Penalty for offences under the Act. 21. Procedure in trial of offences. 22. Bar of suits. 23. Contracting out. 24. [Omitted.] 25. Display by notice of abstracts of the Act. 26. Rulemaking power.
[(2) It extends to the whole of Pakistan.]
It shall come into force on such date as the [Federal Government] may, by notification in the [official Gazette], appoint.
It applies [industrial establishment or commercial establishment] to the payment of wages to persons employed in any factory [industrial establishment or commercial establishment] and to persons employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub ‑ contractor, by a person fulfilling a contract with a railway administration. 5[ * * *]
Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s.3 and 2nd Sch. (with effect from the 14th October, 1955), for the original subsection (2) as amended by A.O., 1949, and the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s.8. The 28th March, 1937, see Gazette of India, 1937, Pt.I, p.626. Subs. by the Labour Laws (Amdt.) Act, 1975, (11 of 1975),s.2 and Sch., for “Central Government”, which was subs. by A.O., 1937, for “G.G. in C”. Subs. by A.O., 1937, for “Gazette of India”. Omitted and Ins. by Ord. 2001 (53 of 2001), s.2 & 5 Sch. (with effect from 1st July, 2001). XXV of 1934 ) ‑ ‑ field ; * * * to do any skilled or unskilled, manual or clerical labour for hire or reward in connection with the execution of a contract to which he is party, and includes the premises in which, or the site at which, any process connected with such execution in carried on ; Explanation. “ Contractor” includes a subcontractor, headman or agent ;] IX of 1890 ) ; and Omitted, renumbered and Ins. by Ord.53 of 2001, s.2 and Sch. (with effect from 1st July, 2001). Ins. by the payment of wages (Amdt.) Act, 1973 (17 of 1973),s.3. The words “in any industrial establishment” omitted by the Labour Laws (Amdt.) Act, 1977 (17 of 1977),s.2 and First Sch. include 1 * * * 2 [Provincial Government];
[including a contractor,] shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act : Provided that, in the case of persons employed (otherwise than by a contractor) ‑
XXV of 1934 ), the person so named, the person so responsible to the employer, or the person so nominated, as the case may be, shall be responsible for such payment. The words “G. G. in C. or” omitted by A. O., 1937. Subs., ibid., for “L. G” Ins. by the Labour Laws (Amdt.) Ordinance, 1972 (9 of 1972), s.2 and Sch.
No wage ‑ period shall exceed one month.
(b) any other railway, factory or industrial 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.
Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated.
The [Provincial Government] may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) from the operation of this section in respect of the wages of any such persons or class of such persons.
All payments of wages shall be made on a working ‑ day.
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IX of 1890 ), the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act. Explanation. ‑ Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.
Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely : ‑ Subs. by A.O., 1937, for “G. G in C.”. * * * [Provincial Government] may, by general or special order , authorise ; Explanation. ‑ The word “services” in this subclause does not include the supply of tools and raw materials required for the purposes of employment. ‑ payments of wages ; XIX of 1925 ), applies or any recognised provident fund as defined in section [clause (37) of section 2 of the Income Tax Ordinance, 1979] ( XXXI of 1979 ), or any provident fund approved in this behalf by the [Provincial Government], during the continuance of such approval; 6* ‑ operative societies approved by the [Provincial Government] or to a scheme of insurance maintained by the [Pakistan Post Office] [and [Government of Pakistan], or the Government of the United Kingdom.] The words “G.G in C. or” omitted ibid. Subs. ibid., for “L.G”. For such Order, see Gaz. of P., 1952, Pt. I, Section 1, p.158. Subs by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and Sch, II, for “58 A of the Income Tax Act, 1922”. Subs. by A.O., 1937, for "L.G". The word “and” omitted by the Payment of Wages (Amdt.) Ordinance, 1940 (3 of 1940), s. 2 Subs. by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 4 and 3rd Sch., for “Indian Post Office”. The word “and” and clause (k) ins. by Ordinance 3 of 1940, s. 2. Subs. by A.O., 1949, for “Government of India”.
[Provincial Government] or of the prescribed authority, may have specified by notice under sub ‑
A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or in the case of persons employed upon a railway (otherwise than in a factory), at the prescribed place or places.
No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
The total amount of fine which may be imposed in any one wageperiod on any employed person shall not exceed an amount equal to half an anna in the rupee of the wages payable to him in respect of that wageperiod.
No fine shall be imposed on any employed person who is under the age of fifteen years.
No fine imposed on any employed person shall be recovered from him by installments or after the expiry of sixty days from the day on which it was imposed.
Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
All fines and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed; and all such realizations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
‑ places, where by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.
The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wageperiod for which the deduction is made a larger proportion than the period for which he was absent bears to the total period, within such wageperiod, during which by the terms of his employment, he was required to work: Subs. by A.O., 1937, for “L.G”. Provided that, subject to any rules made in this behalf by the [Provincial Government], if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice. [Explanation. For the purposes of this section, an employed person shall be deemed to be absent from the place where he is required to work if, although present in such place, he refuses, in pursuance of a stayinstrike or for any other cause which is not reasonable in the circumstances, to carry out his work.]
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opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.
All such deductions and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
of section 7 shall not be made from the wages of an employed person unless the house accommodation, amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the houseaccommodation, amenity or service supplied and, in the case of a deduction under the said clause (e), shall be subject to such conditions as * * * the [Provincial Government] may impose. Subs. by A. O., 1937, for “L.G.”. Explanation ins. by the Payment of Wages (Amdt.) Act, 1937 (22 of 1937), s. 2. The words “the G. G. in C. or” omitted by A. O., 1937.
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[Provincial Government] regulating the extent to which such advances may be given and the installments by which they may be recovered.
[and clause (k)] of subsection (2) of section 7 shall be subject to such conditions as the [Provincial Government] may impose.
The [Provincial Government] may appoint inspectors for the purposes of this Act in respect of all persons employed upon a railway (otherwise than in a factory) to whom this Act applies.
The [Provincial Government] may, by notification in the [official Gazette], appoint such other persons as it thinks fit to be Inspectors for the purposes of this Act, and may define the local limits within which and the class of factories and industrial establishments in respect of which they shall exercise their functions.
An Inspector may, at all reasonable hours, enter on any premises, and make such examination of any register or document relating to the calculation or payment of wages and take on the spot or otherwise such evidence of any person, and exercise such other powers of inspection, as he may deem necessary for carrying out the purposes of this Act.
Every Inspector shall be deemed to be a public servant within the meaning of the Pakistan Penal Code ( XLV of 1860 ). Subs. by A. O., 1937, for “L. G.”. Ins. by the Payment of Wages( Amdt.) Ordinance, 1940 (3 of 1940), section 3. Subs. by A. O., 1937, for “G. G. in C.”. Subs. ibid., for “L. G.”. Subs. by A. O., 1937, for “local official Gazette”.
[Provincial Government] may, by notifications in the [official Gazette], appoint any Commissioner for Workmen’s Compensation or other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, [or nonpayment of dues relating to provident fund or gratuity payable under any law,] of persons employed or paid in that area.
Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages [or of any dues relating to provident fund or gratuity payable under any law,] has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, [or any of the heirs of an employed person who has been died,] or any other person acting with the permission of the authority appointed under sub ‑
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Provided that every such application shall be presented within [three years] from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made, as the case may be: Provided further that any application may be admitted after the said period of [three years] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.
When any application under sub ‑
may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person [or if the applicant is one of the heirs of an employed person, the payment to such applicant,] of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and not exceeding ten rupees in the latter: Subs. by A.O., 1937, for “L. G.”. For such Notifin: (i) see Notifin. No. 1237P./ 36III, P. & M.D. (Misc.), dated the 5th April, 1939, published in Sindh Gazette, 1939, Pt. I, p. 630., (ii) see Notifin. No. S. R. O. 673 (K)/61, dated the 8th July, 1961, published in the Gaz. of P., 1961, Pt.I, p. 268, Subs. by A. O., 1937, for “local official Gazette”. Ins. by the Payment of Wages ( Amdt.) Act, 1973,(17 of 1973), s. 4. Ins. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and First Sch. Subs. by the Payment of Wages (Amdt.) Act, 1973 (17 of 1973), s. 4 or “six months”. Ins. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977) s. 2 and First Sch. Provided that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to (a) a bonafide error or bonafide dispute as to the amount payable to the employed person, or
If the authority hearing any application under this section is satisfied that it was either malicious or vexatious, the authority may direct that a penalty not exceeding fifty rupees be paid to the employer or other person responsible for the payment of wages by the person presenting the application.
any amount directed to be paid under this section may be recovered
A single application may be presented under section 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case the maximum compensation that may be awarded under sub ‑
The authority may deal with any number of separate pending applications, presented under section 15 in respect of persons belonging to the same unpaid group, as a single application presented under sub ‑
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Subs. by the Labour Laws. (Amdt.) Act, 1976 (II of 1976), s. 2 and Sch., for clause (b).
[subsection (3) or sub ‑
* * * before the [Labour Court constituted under the Industrial Relations Ordinance, 1969 (XXIII of 1969), within whose jurisdiction the cause of action to which the appeal relates arose] [Provided that no appeal under this clause shall lie unless the memorandum of appeal is accompanied by a certificate of the authority to the effect that the appellant has deposited with the authority the amount payable under the direction appealed against, or]. [subsection (4)] of section 15. [(1A) All appeals pending before any District Court under this section immediately before the commencement of the Labour Laws (Amendment) Act, 1975, shall, on such commencement, stand transferred to, and be disposed of by, the Labour Court within whose jurisdiction the cause of action to which the appeal relates arose.].
Save as provided in sub ‑
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[sub ‑
Subs. by the Repealing and Amending Act, 1937 (20 of 1937), s. 2 and 1st Sch., for “subsection (3)”. The words “in a Presidencytown [or in Ragoon] before the Court of Small Causes and elsewhere” omitted by A. O., 1949. The words within crotches were omitted by A. O., 1937. Subs. by the Labour Laws (Amdt.) Act, 1975 (111 of 1975), s. 2 and Sch., for “District Court”. Subs. by the Labour Laws (Amdt.) Act, 1976 (11 of 1976), s. 2 and Sch., for “or”,. Added ibid. Subs. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and First Sch., for clause (b). Ins. by the Labour Laws (Amdt.) Act. 1975, 11 of 1975, s. 2 and Sch.
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V of 1908 ), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court for all the purposes of section 195 and of Chapter XXXV of the Code of Criminal Procedure, 1898 ( V of 1898 ).
Whoever contravenes the provisions of section 4, section 6 or section 25 shall be punishable with fine which may extend to two hundred rupees.
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Before sanctioning the making of a complaint against any person for an offence under sub ‑
default was due to (a) a bona fide error or bona fide dispute as to the amount payable to the employed person, or
No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rule made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.
In imposing any fine for an offence under sub ‑
proceedings taken under section 15. 1* * * * * * *
[Provincial Government] may make rules to regulate the procedure to be followed by the authorities and Courts referred to in sections 15 and 17.
The [Provincial Government] may, * * *, by notification in the [official Gazette], make rules for the purpose of carrying into effect the provisions of this Act.
In particular and without prejudice to the generality of the foregoing power, rules made under sub ‑
This section was amended by A.O., 1937 and A.O., 1961. Subs. by A. O., 1937., for “G.G. in C.”. For the Payment of Wages (Procedure) Rules, 1937, made by the Governor General in Council under provisions, see Gazette of India, 1937, Pt., I, pp. 303312. Subs. by A. O., 1937 for “L.G.”. The words “Subject to the control of the G.G. in C.”, omitted ibid. Subs. ibid., for “local official Gazette”. ‑
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In making any rule under this section the [Provincial Government] may provide that a contravention of the rule shall be punishable with fine which may extend to two hundred rupees.
All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under clause (3) of section 23 of the General Clauses Act, 1897, ( X of 1897 ) shall not be less than three months from the date on which the draft of the proposed rules was published. Subs. by A.O., 1937, for “L.G.”.