(1) If any Board of premises are let out to a person who is employed by the State Government or a local authority or in a factory or industrial establishment, he may execute an agreement in such form as may be prescribed in favour of the Board providing that the State Government or the local authority or other employer, as may be, by whom he is employed shall be competent to deduct from the salary or wages payable to him such amount as may be specified in the agreement and to pay the amount so deducted to the Board in satisfaction of the rent due to him in respect of such premises.
(2) On the execution of such agreement, the State Government or local authority or other employer, as the case may be, shall, if so required by the Board in writing, make the deduction from the salary or wages of the employee in accordance with the agreement, and pay the amount so deducted to the Board, anything contained in the Payment of Wages Act, 1936 (Act No. IV of 1936) notwithstanding.
(3) The deduction of any amount under sub-section(2) shall operate as a complete discharge of the liability of the employee to the Board in respect of the amount so deducted. Explanation.- The terms factory and industrial establishment shall have the meanings respectively assigned to them by the payment of wages Act, 1936 (Act No IV of 1936).