Provisions relating to payment of wages and deductions as discussed in the ‘Shops and Establishments Act

In case any unauthorized deduction has been made from the wages of an employee, or any payment of wages has been delayed, of any sum is otherwise due from the employer, the employee or any legal practitioner or any authorized agent or any office-bearer of a registered trade union or an inspecting officer may make an application to the prescribed authority for a direction. 

The prescribed authority is required to hear the application and he may direct the refund of the amount deducted or payment of the delayed wages or any other sum to the employee together with the payment of compensation not exceeding ten times the amount of unauthorized deduction from wages, and not exceeding Rs. 10 in other cases. No direction for compensation is, however, to be made in the case of delayed wages if the authority is satisfied that the delay was due to:

(i) a bona fide dispute as to the amount payable to the employee; or error or bona fide dispute as to the amount payable to the employee; or 

(ii) occurrence of an emergency or existence of exceptional circumstances, on account of which, the person responsible for the payment of wages was unable, though exercising reasonable diligence to make prompt payment; or 

(iii) failure of the employed person to apply for or accept payment. If the authority is satisfied that it was either malicious or vexatious, he may direct that a penalty not exceeding Rs. 25 be paid to the employer or other person responsible for the payment of wages by the person presenting the application. The authority may deal with any numbers of separate pending applications as a single application.

An appeal against the order of the authority or a direction given by him may be preferred to the prescribed appellate authority, whose decision will be final.

The authorities have the power of a civil court under the Code of Civil Procedure for the purpose of taking evidence, enforcing the attendance of witnesses and compelling the production of documents. They are also deemed to be civil for the purpose of the Code of Criminal Procedure, (Sec. 28).

A legal practitioner may appear, plead or act on behalf of any party in proceedings under the Act to prescribed conditions. (Sec. 28).

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