Section 15 of PW Act : Section 15: Claims Arising Out Of Deductions From Wages Or Delay In Payment Of Wages And Penalty For Malicious Or Vexatious Claims

Explanation using Example

Imagine an employee, Raj, who works at a manufacturing company. Despite working overtime in March, his employer did not pay him the extra wages due for the overtime work. Raj waits for a month, but when the April salary is disbursed without the overtime pay, he decides to take action.

Raj approaches a local trade union, and with their help, he learns about the Payment of Wages Act, 1936. The trade union official informs him that under Section 15 of the Act, he can file a claim for the unpaid overtime wages.

Following the procedure, Raj files an application to the authority appointed under Section 15(1), which in his state happens to be an Assistant Labour Commissioner. He submits his claim within the stipulated twelve-month period, as mentioned in Section 15(2).

The appointed authority schedules a hearing where Raj and his employer are given the opportunity to present their cases. After examining the evidence, the authority finds in Raj's favor and orders the employer to pay the delayed overtime wages. Additionally, the authority decides that compensation is warranted and directs the employer to pay Raj compensation under Section 15(3).

Raj's employer, realizing the mistake, pays the overdue wages before the final decision. However, the authority still awards Raj a reduced compensation for the inconvenience and delay, as per the provisions of the Act.

The employer complies with the authority's direction, and Raj receives his unpaid wages along with compensation, ensuring that justice is served in accordance with the Payment of Wages Act, 1936.