(1) Notwithstanding the provisions of sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 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.
1*[Explanation I].--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.
2*[Explanation II].--Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely:--
(i) the withholding of increment or promotion (including the stoppage of increment at an efficiency bar);
(ii) the reduction to a lower post or time scale or to a lower stage in a time scale; or
(iii) suspension;
shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by the State Government by notification in the Official Gazette.]
(2) 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:--
(a) fines;
(b) deductions for absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;
3*[(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by the State Government by notification in the Official Gazette;]
1. Explanation re-numbered as Explanation I by Act 68 of 1957, s. 5 (w.e.f. 1-4-1958).
2. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).
3. Subs. by s. 5, ibid., for cl. (d) (w.e.f. 1-4-1958).
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(e) deductions for such amenities and services supplied by the employer as the 1*** State Government 2*[or any officer specified by it in this behalf] may, by general or special order, authorise.
Explanation.--The word "services" in 3*[this clause] does not include the supply of tools and raw materials required for the purposes of employment;
7 4*[(f) deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages;
(ff) deductions for recovery of loans made from any fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof;
(fff) deductions for recovery of loans granted for housebuilding or other purposes approved by the State Government, and the interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a Court or other authority competent to make such order;
(i) deductions for subscriptions to, and for repayment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined in section 58A of the Indian Income-tax Act, 1922 (11 of 1922), or any provident fund approved in this behalf by the State Government, during the continuance of such approval;
5***
(j) deductions for payments to co-operative societies approved by the State Government 2*[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the Indian Post Office; 6*[and] ---------------------------------------------------------------------
1. The words "Governor-General in Council or" omitted by the A. O.
1937.
2. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
3. Subs. by Act 56 of 1974, s. 3 and Second Schedule, for "this subclause".
4. Subs. by Act 53 of 1964, s. 6, for cl. (f) (w.e.f. 1-2-1965).
5. The word "and" omitted by Ordinance 3 of 1940, s. 2.
6. Ins. by s. 2, ibid.
102 1*[2*[(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government.]] 3*[(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 for the welfare of the employed persons or the members of their families, or both, and approved by the State Government or any officer specified by it in this behalf, during the continuance of such approval;
(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926;]
4*[(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;
(m) deductions for recovery of losses sustained by a railway 8 administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;
(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise;
(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his neglect or default;]
5*[(p) deductions, made with the written authorisation of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;]
6*[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]
4*[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage period from the wages of any employed person shall not exceed--
(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section (2), seventy-five per cent. of such wages, and ---------------------------------------------------------------------
1. Ins. by Ordinance 3 of 1940, s. 2.
2. Subs. by Act 68 of 1957, s. 5, for cl. (k) (w.e.f. 1-4-1958).
3. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).
4. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
5. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
6. Added by Act 19 of 1977, s. 2.
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(ii) in any other case, fifty per cent. of such wages:
Provided that where the total deductions authorised under subsection (2) exceed seventy-five per cent, or, as the case may be, fifty per cent. of the wages, the excess may be recovered in such manner as may be prescribed.
(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than the Indian Railways Act, 1890 (9 of 1890).]
8.
Fines.
8. Fines. (1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the State Government or of the prescribed authority, may have specified by notice under sub-section
(2).
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(2) 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 person employed upon a railway (otherwise than in a factory), at the prescribed place or places.
(3) 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.
(4) The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amount equal to 1*[three per cent.] of the wages payable to him in respect of that wage-period.
(5) No fine shall be imposed on any employed person who is under the age of fifteen years.
(6) No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of sixty days from the day on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.
(8) All fines and all realisations 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 realisations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
Explanation.--When the persons employed upon or in any railway, factory or 1*[industrial or other establishement] are part only of a staff employed ---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 8 (w.e.f. 15-10-1982).
104-104B under the same management, all such realisations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority.
9.
Deductions for absence from duty.