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The Payment of Wages (Railways) Rules, 1938

The Payment of Wages (Railways) Rules, 1938

The Payment of Wages (Railways) Rules, 1938 has been enforced following the powers conferred by the Payment of Wages Act, 1936 and Payment of wages (Railways) rules, 1937. The rules apply to the entire jurisdiction of India. These rules are concerning the payment of wages to a person employed upon any railway under a Railway Administration or to a contractor of a Railway Administration. In this article, we will look at the rules stipulated under the Payment of Wages (Railways) Rules, 1938.

Know more about Employment Laws Relating to Wages

Register of Fines

A fine may be imposed on an employee in any railway where the employer has obtained approval under a list of acts and omission. The paymaster needs to maintain such fines in a register of fines in a prescribed format.

  • At the beginning of a Register, serially numbered the approved purpose or purposes on which the fines realised are to be expended.
  • If any disbursements are made from the fines realised, a deduct entry of the amount will have to be updated in the Register of fines. The voucher or receipt in respect of the amount has to be affixed in the register.
  • If more than two purposes have been approved, the entry of disbursement will also indicate the purpose for which it is made.
  • In case no fine has been imposed on employees in a wages period, a nil entry Have to be made across the body of the register at the end of the wages period.

Register of Deduction for Damage or Loss

In case of any deduction is made from the wages of any employee in a wages period for damage or loss of goods, such deduction details need to be maintained a register. According to the Payment of Wages (Railways) Rule, the paymaster in any railway has the responsibility to maintain such Register of deduction for damage or loss.

If no deduction has been made from the wages of any employee in a wages period, a nil entry will have to be made across the body of the register at the end of the wage period. This should indicate the terms of the wage period to which the nil entry relates.

Register of Wages

As per the provision of Payment of Wages (Railways) Rules, A register of wages will be maintained by every employer in a prescribed format as the paymaster finds convenient. The register of wages should include following particulars:

  • The gross wages of each employee for each wage-period
  • All deduction made from those wages need to be mentioned in Register of wages
  • The wages paid to each person employed for each wages-period
  • The date of payment of wages

Maintenance of Register

According to the provision of the Payment of Wages (Railways) Rules, Register of Fines Register of deduction for damage or loss, Register of Wages needs to be maintained up to date. These registers need to kept and preserved for three years after the date of last entry.

A place for Keep Register

These register should be kept at the workplace and it to be produced the Inspector on demand. As per Payment of Wages (Railways) Rules, the paymaster can keep the registers at a place other than work spot with prior approval of the Regional Labour Commission (Central).

Closure of any establishment

In the event of closure of the establishment of a railway administrlegaation or contractor, the paymaster will have to produce the register before the inspectors on demand in the office or any other place specified by him.

Language in Register

The register will normally be maintained in English, In case the register is maintained in any other language other than English, a true translation in English need to be submitted on demand.

Nomination

The nomination form provided by a railway servant in respect of payment of provident fund (PF) deposits will be treated as the nomination form. It can be used for disbursement of unpaid wages.

Displaying Notices

The Regional Labour Commissioner will specify places on the railway for displaying the notices, list and rules under the Payment of Wages (Railways) Rules.

The paymaster needs to display a notice in a conspicuous place at every station or establishment within his jurisdiction. The notice should be in English and Hindi Language or the language of the majority of the person employed at such stations or establishment. The notice should contain the following details:

  • The wages period for which wages are payable
  • The day or date on which wages are to be paid
  • The days and dates on which unpaid wages are to pay
  • Name and address of the Inspectors having jurisdiction

Each notice should be maintained in a clean and legal condition. A copy of each of every such notice and any alteration will have to be sent to the Inspector more than two weeks in advance of the day or date on which wages are to be paid.

Supervision of Payment

As per the provision of the Payment of Wages (Railways) Rules, the paymaster or his representative at the work spot will pay wages to the employed person under his supervision on the direction of Inspectors.

Prescribed Authority

  • The Regional Labour commissioner will be the authority component to approve acts and omission in respect of which the fines imposed and under Payment of Wages (Railways) Rules, the purposes to which the proceeds of fines will be applied.
  • The chairman of the Staff Benefit Fund Committee functioning in each zonal of the railway, production units of the railway and other railway organisation will be the prescribed authority for the amount required to be deposited

Application for Fines

Every employer requires the power to impose fines in respect of any acts and omission on the part of the employed person need to send the application to Regional Labour Commissioner. The application for fines should contain following details:

  • A list of acts and omission and it should be in the English language
  • In case the Railway Administration itself dost not intend to be the sole authority empowered to impose fine, the employee should apply with following contents:
    • A list showing by virtue of the office of his officers as pass orders imposing fines
    • The class of establishment on which any officer may impose fine

Approval of Lists of Acts and Omissions

The Regional Labour Commissioner on receipt of the list prescribed above and after such enquiry as he considers mandatory, pass orders in respect of the list referred above.

  • Disapproving the list
  • Approving the list, either in its original form or as amended by him/her in which case such list will be deemed to have been approved.

As per this Payment of Wages (Railways) Rules, no order disapproving or amending the will be passed unless the employer will have been given an opportunity of showing cause orally or in writing against such order.

Posting of List

The employer will display a list of acts and omission approved by the authority prescribed under Payment of Wages (Railways) Rules, near the main entrance of every factory and at the specified places. A copy of such notice in English together with a literal translation in the language will be placed in the majority of the persons employed at the factory.

Person Authorised to Impose Fines

No fine will be imposed on a person employed by a Railway Administration or by a person holding an appointment as named in the list

  • In case a contractor employs a person, a person other than the contractor will impose no fine
  • A contractor who runs more than one establishments in two or more localities and who employs more than fifty person in one locality may with the approval of the supervisor, delegate his power to fine to fine his representative in that locality.
  • No fine will be imposed, and no deduction for damage or loss will be made from a person employed by a Railway Administration until the employee has been given an opportunity of showing cause against such imposition or deduction.
  • No fine will be imposed except in accordance with the procedure laid down in the rules in force on the Railway.
  • No fine will be imposed on, and a contractor will make no deduction for damage or loss from the wages of an employee until the person authorised to impose the fine has explained personally to the employee regarding the act or omission.
  • The authorised person needs to explain the details in respect of the fine or deduction is to be imposed, and the amount of the fine or deduction which is proposed to impose
  • The authorised office needs to hear the employee’s explanation in the presence of at least one other person.

Information to Paymaster

The person imposing a fine or directing the deduction for damage or loss of gods will have to inform the paymaster of all particulars necessary for the completion of the register.

Deduction of Wages

According to the provision of Payment of Wages (Railways) Rules, no deduction will be made from the wages of an employee if he is under age of fifteen years or if the employee is a woman.

No deduction of Wages

  • No deduction will be made from the wages of any employee unless there is a provision in writing regarding the contract of employment requiring him to give notice of the termination of his employment
  • The period of the notice does not exceed fifteen days or the wage-period whichever is less
  • The period of the notice does not exceed the period of notice which the employer is needed to give of the termination of the employment

Annual Return

Every employee needs to send a return in a prescribed format to the Regional Labour Commissioner. According to Payment of Wages (Railways) Rules, the annual return needs to be submitted before the15th of February following the end of the year to which it relates.

Advances to Persons Employed by a Contractor

An advance of wages should not exceed the amount equal to two calendar months wages of the employee. In the exceptional case, the amount of advance may with the previous of the Regional Labour Commissioner be made to the extent of four calendar months wages.

  • The advance can be recovered in instalments by deductions from wages spread over less than twelve months in case of the ordinary advance and twelfth months in the case of the first advance.
  • The amount of all advances sanctioned and the repayment will have to enter in the register

Deposit of Amount of Undisbursed Wages

In respect of the staff on Indian Railways including the production units and their subordinate establishments, all amount of undisbursed wages remaining with the paymaster on account of death and the employee or on account of the whereabouts not being known will be transferred to the Staff benefit fund by the account officer after the expiry of three years.

  • The amounts deposited with the Chairman, Staff Benefit Fund under the Payment of Wages (Railways) Rules will remain with the Chairman of the Fund for four Years
  • As soon as the Railway Administration will publish in any two Newspapers circulated in the language commonly understood in the area on which the factory is situated.
  • The Railway Administration will also exhibit the details of undisbursed wages on notice-board of the factory or establishment
  • The prescribed authority will release the amount to the nominee or to the person who has claimed the amount and which has been decided by the competent authority court.

Legal Heir can Claim Amount

The spouse or children and where the employee does not have spouse or children, the dependent relative in the order of precedence given rules can claim the amount within the seven years during which the wages remain with the Staff Benefit funds.

The principal amount as remaining with the Chairman, Staff Benefit Fund Committee will be payable to the claimant (legal hair).

Payment of Undisbursed Wages

  • If the wages of a person employed with railway could not pay because of his death, such wages should be paid to the person nominated by the employee as per the provision of Payment of Wages (Railways) Rules
  • If there is no nomination has been made by the employee, or for any reason, such wages could not be paid to the nominee until three years, such undisbursed wages will be transferred by the accounts officer to the Staff benefit Fund before the expiry of the fifteenth day after the last day of the three years

Note: The undisbursed wages deposited with the Chairman, Staff benefit Fund will be applied by him to meet the expenditure for Staff Benefit Fund.

Penalty

Any breach of rules stipulated under Payment of Wages (Railways) Rules, 1938 would be punishable with a fine of two hundred rupees.