Section 8 of PW Act : Section 8: Fines

Explanation using Example

Imagine a scenario where an employee at a textile factory is frequently late for work. The employer wants to impose a fine on the employee for this repeated tardiness. According to Section 8 of The Payment of Wages Act, 1936:

• The employer must first have specified tardiness as a finable offense with the approval of the appropriate government or prescribed authority.
• The specified acts and omissions, including being late, must be clearly displayed on the premises for all employees to see.
• The employee must be given a chance to explain or defend themselves against the imposition of the fine.
• The fine for the wage period cannot exceed three percent of the employee's wages for that period.
• If the employee is under fifteen years old, no fine can be imposed.
• The fine must be imposed on the same day the lateness occurred, and it must be recovered within ninety days, without installments.
• All fines collected must be recorded and used for purposes beneficial to the employees, as approved by the prescribed authority.

In this case, if the employee earns ₹10,000 per month, the fine for tardiness cannot exceed ₹300 in that month. Additionally, the employer must ensure that any fine imposed is used for the benefit of the employees, such as improving the factory's facilities or employee welfare programs.