Wages Deduction in Labour Laws

  • Pavitra Pottala, MNLU Aurangabad
  • December 20, 2020

Content :

Workers were always exploited by various ways but in the starting years of the 20th century the need of protection for the rights of workers subject to wages was felt. For the first time in legislative Assembly in the year 1925 weekly payment bill that is private bill was introduced. But the bill was not successful, it was withdrawn by the government and the reason was given for withdrawn that government is already looking about this matter. 
In early 20’s employers used to exploit workers, double amount of deductions was made from wages for absence for a single day and impose fines on workers for small mistakes and this was customary at that time. In the year 1926, the government decided to make legislative regulations for the benefit of workers and put some limitations on the extent of fines and deductions of wages.
In 1929 Royal Commission on labour was established and matter put before the commission, in 1933 the government put the “Payment of wages bill, 1933” in front of legislative Assembly for opinions. In 1935 bill was again presented in legislative Assembly and selected committee displayed its report then finally in 1936 bill was passed and “Payment of wages Act” came in to force on March, 21st, 1937.
In the Payment of Wages Act, 1936 under section 2(iv) Wages is defined and the Deduction from wages is defined under section 7 of the same Act. And exclusively sections 7-13 of the payment and wages Act, 1936 talks about the deduction, its types, limitation to deduction and fine.
After enactment of Payment of  Wages Act, 1936 exploitation of workers on sake of deduction and customary practices on deduction has stopped and this protect the rights of workers subject to wages and regulates laws subject to wages and its deductions. This Act can be considered as very significant legislative contribution in labour law. 

Keywords  – Wages, Legislative Assembly, Workers, Payment, Deduction.