Section 2 of PW Act : Section 2: Definitions

Explanation using Example

Let's consider a hypothetical scenario demonstrating the application of Section 2 of The Payment of Wages Act, 1936:

Raj works as a mechanic in a car manufacturing workshop in Maharashtra, which is an "industrial or other establishment" as per the definition given in the Act. His employer, Mr. Sharma, has agreed to pay Raj a monthly salary, overtime wages, and a yearly bonus as part of his remuneration package.

When Mr. Sharma unexpectedly passes away, his legal representative takes over the business operations. According to the Act, the term "employer" includes the legal representative of a deceased employer. Therefore, the legal representative is now responsible for ensuring Raj and other employees receive their wages as per the terms agreed upon with Mr. Sharma.

Moreover, the Act specifies that "wages" include overtime work compensation. Raj had worked overtime last month, and the legal representative must pay him for those extra hours. Additionally, if Raj were to leave the job, any settlement amount due upon termination, as per the contract or law, would also be considered wages and should be paid within the specified time.

The Maharashtra State Amendment further clarifies that in the event of Mr. Sharma's death, the "legal representative" is the person who legally represents Mr. Sharma's estate, ensuring that Raj's wages and other employees' dues are managed appropriately.