PREAMBLE
In exercise of the powers conferred by sub-section (2) of Section 26 of the Payment of Wages Act, 1936 (Central Act 4 of 1936), the Government of Karnataka hereby makes the following Rules, the same having been previously published in Karnataka Gazette, dated the 16th August, 1962 in Notification No. LLH 18 LWA 60(ii), dated the 7th August, 1962, as required by sub-section (5) of Section 26 of the said Act, namely:-
1. Title and application.
(1) These Rules may be called the Karnataka Payment of Wages Rules, 1963.
(2) They extend to the whole of the State of Karnataka.
2. Definitions.
In these Rules, unless the context otherwise requires,-
(a) “The Act” means the Payment of Wages Act, 1936 (Central Act IV of 1936);
(b) “The Authority” means, the authority appointed under sub-section (1) of Section 15 of the Act;
( c) “The Chief Inspector” means the Chief Inspector of Factories appointed under the Factories Act, 1948 (Central Act No. LXIII of 1948) or notified by the State Government under the Plantation Labour Act, 1951 (Central Act LXIX of 1951);
(d) “Deduction for breach of contract” means a deduction made in accordance with the proviso to sub-section (2) of Section 9;
(e) “Deduction for damage or loss” means a deduction made in accordance with the provisions of clause ( c) of sub-section (2) of Section 7;
(f) “Employer” includes a person responsible for the payment of wages under Section 3 of the Act;
(g) “Form” means a form appended to these rules;
(h) “Inspector” means an Inspector authorised by or under Section 14 of the Act;
(i) “Section” means a section of the Act.
3. Register of Fines.
(1) In any factory or industrial establishment in respect of which the employer has obtained approval under sub-section (1) of Section 8, to a list of acts and omissions in respect of which fines may be imposed, the employer shall maintain a Register of Fines [deductions for damages or loss and advances] in Form I [and in respect of an employer of other establishments, a combined Muster Roll-cum-Register of Wages in Form 'T' prescribed under sub-rule (9-B) of Rule 24 of the Karnataka Shops and Commercial Establishments Rules, 1963].
(2) At the beginning of Register of Fines, the approved purpose or of purposes for which the fines realised are to be extended, shall be entered and serially numbered.
(3) When any disbursement is made from the fines realised, an entry relating to the amount so expended shall be made in the Register of Fines. The vouchers or receipts in respect of the amounts so expended shall be serially numbered and kept separately, the serial number of each voucher or receipt and the amount to which it relates being noted in the remarks column of the Register. If more than one purpose has been approved, the entry relating to disbursement shall also indicate the purpose for which it is made.
4. Register of deductions for damage or loss.
In every factory or industrial establishment in which deductions for damage or loss are made, the employer shall maintain [a Register of fines, deductions for damages or loss and advances on Form I] [and in respect of an employer of other establishments a combined Muster Roll-cum-Register of Wages in Form 'T' prescribed under sub-rule (9-B) of Rule 24 of the Karnataka Shops and Commercial Establishments Rules, 1963].
5. Register of wages.
A Muster Roll-cum-Register of Wages/Salary in Form 22 as prescribed in sub-rule (1) of Rule 137 of the Karnataka Factories Rules, 1969 in respect of factories and in respect of other establishments, a combined Muster Roll-cum-Register of Wages in Form 'T' prescribed under sub-rule (9-B) of Rule 24 of the Karnataka Shops and Commercial Establishments Rules, 1963 shall be maintained.
6. Period of maintenance of Registers.
The registers required to be maintained by Rules 3, 4, 5 and 18 shall be preserved by the employer for 3 years after the date of the last entry noted in them. If such registers are maintained in any language other than Kannada, a true translation thereof in English shall also be maintained.
7. Notice of rates of wages.
In every factory or industrial establishment the employer shall display at or near the main entrance of the factory or industrial establishment, notices in Form VI specifying the rates of wages payable to different classes of workers employed therein. The notices shall be in English and in Kannada:
Provided that in the case of factories wherein one hundred or more persons are employed notices in Form VI shall be displayed separately for each section in the department concerned instead of at or near the main entrance of the Factory.
8. Weights, Measures and Weighing Machines.
All weights, measures, weighing or measuring instruments which are used in checking or ascertaining wages of persons employed in any factory, shall be examined in accordance with the provisions of the Karnataka Weights and Measures (Enforcement) Act, 1958 (Karnataka Act 2 of 1959). If an Inspector considers that any action should be taken under the said Act and the rules made thereunder, he may seize the article in question and shall report the matter with his opinion to the Inspector of Weights and Measures having jurisdiction under the said Act for necessary action.
9. Notice of dates of payment.
The employer shall display in a conspicuous place at or near the main entrance of the factory or industrial establishment, a notice in English and in Kannada showing for not less than two months in advance, the days for which wages are to be paid.
10. Prescribed authority.
The Chief Inspector shall be the prescribed authority competent to approve under sub-section (1) of Section 8 of the Act, acts and omissions in respect of which fine, may be imposed, and under sub-section (8) of Section 8, the purposes to which the proceeds of fines shall be applied.
11. Application in respect of fines.
Every employer requiring the power to impose fines in respect of any acts and omissions on the part of the employed persons shall send to Chief Inspector:-
(a) a list in English, in duplicate, clearly defining such acts and omissions; and
(b) in cases where the employer himself does not intend to be the sole person empowered to impose fines, a list, in duplicate showing by virtue of office, such of his subordinates as may pass orders imposing fines and the class of employees on which such subordinate may impose fines.
12. Approval of list of acts and omissions.
The Chief Inspector may, on receipt of the list prescribed in clause (a) of Rule 11, after such enquiry as he considers necessary and after giving the employer an opportunity of being heard, pass orders either-
(a) disapproving the list; or
(b) approving the list either in its original form or as amended by him in which case such list shall be considered to be an approved list.
13. Posting of list.
The employer shall display near the main entrance of the factory or industrial establishment, copies in English, together with a translation thereof in Kannada, of all approved lists of acts and omissions in respect of which fines may be levied.
14. Persons authorised to impose fines.
No fine shall be imposed by any person other than an employer or a person holding an appointment named in the list referred to in clause (b) of Rule 11.
15. Procedure in imposing fines and deductions.
No fine shall be imposed on and no deduction for damage or loss shall be made from the wages of an employed person until the person authorised to impose the fine or make the deduction has explained personally to the said person the act or omission or damage or loss, in respect of which the fine or deduction is proposed to be imposed and the amount of the fine or deduction which it is proposed to impose and has heard his explanation in the presence of at least one other person, such explanation being reduced to writing and the signature of such person and the other person being obtained.
16. Information to employer.
The person imposing a fine or directing the making of a deduction for damage or loss, shall at once inform the employer of all particulars necessary for the completion of the Register prescribed in Rule 3 or Rule 4, as the case may be.
17. Deductions for absence from duty.
For purposes of deduction for absence from duty, the hours of work in respect of plantation as such shall be the same as those specified in the notice of periods of work prescribed under Section 23 of the Plantations Labour Act, 1951, for field workers and under Section 61 of the Factories Act, 1948 for factory workers.
18. Deductions for breach of contract.
(1) No deduction for breach of contract shall be made from the wages of an employed person who is under the age of 15 years;
(2) No deduction for breach of contract shall be made from wages of any employed person unless-
(a) there is provision in writing forming part of the terms of the contract of employment requiring the employee to give notice of the termination of such employment and the period of notice does not exceed either;
(i) fifteen days or the wage period whichever is less; or
(ii) the period of notice which the employer is required to give for the termination of that employment under the contract;
(b) this rule has been displayed in English and in Kannada at or near the main entrance of the factory or industrial establishment and has been so displayed for not less than one month before the commencement of the absence in respect of which the deduction is made;
( c) a notice has been displayed at or near the main entrance of the factory or industrial establishment giving the names of the persons from whose wages the deduction is proposed to be made, the number of days wages to be deducted and the conditions (if any) on which the deduction will be remitted:
Provided that where the deduction is proposed to be made from all the persons employed in departments or sections of the factory, it shall be sufficient, in lieu of giving the names of the persons in such departments or sections, if the departments or sections affected are specified.
(3) No deduction for breach of contract shall exceed the wages of the person employed for the period by which the notice of termination of service given fall short of the period of such notice required by contract of employment.
(4) If any conditions have been specified in the notice displayed under clause ( c) of sub-rule (2), no deduction for breach of contract shall be made from the wages of any person who has complied with those conditions.
19.Advances.
(1) Any advance of wages not already earned shall not, without previous permission of an Inspector exceed an amount equivalent to the wages earned by the employed person during the preceding two calendar months; or if he has not been employed for that period, twice the wages he is likely to earn during the subsequent calendar month.
(2) The advance may be recovered in instalments by deductions from wages, spread over not more than 12 months:
Provided that this sub-rule shall not apply to an advance made, in which the employer, either at the instance or with the consent of the employed person and with the approval of the Chief Inspector of Factories, or the Chief Inspector of Plantations, postpones its recovery for a specified period on exceptional grounds (such as when full work could not be provided for the workers for causes beyond the control of the employer) which in the opinion of the Chief Inspector of Factories, or Chief Inspector of Plantations merits such postponement.
(3) No instalment by which an advance is repaid shall exceed ?, or where the wages for any wage period are not more than Rs. 2, 1/4 of the wages for any wage period in respect of which the deduction is made.
(4) The amounts of all advances sanctioned and all repayment of such advances, shall be entered in a Register maintained a register of fines, deduction for damages or loss and advances in Form I in respect of factories and industrial establishments and in respect of other establishments a combined Muster Roll-cum-Register of Wages in Form 'T', prescribed under sub-rule (9-B) of Rule 24 of the Karnataka Shops and Commercial Establishments Rules, 1963.
(5) The rate of interest charged for advances under sub-rule (1) shall not exceed 61/4 per cent per annum.
20. Annual return.
(1) [The employer shall send a Combined Annual Return in Form 20 of the Karnataka Factories Rules, 1969 in respect of every factory so as to reach the Inspector within whose jurisdiction the factory is situated [and in respect of other establishments in Form 'U', a combined annual return prescribed under sub-rule (9-C) of Rule 24 of the Karnataka Shops and Commercial Establishments Rules, 1963] on or before the 1st February of each year in respect of preceding year.]
(2) Copies of notices referred to in Rule 7 shall be sent in duplicate by the employer to the Inspector within whose jurisdiction the factory or industrial establishment is situated, every year not later than 15th February, provided that any alteration in the notices that may be made in the course of the year shall be communicated to such Inspector not later than a fortnight from the date on which the alteration was made.
21. Abstracts.
The abstracts of the Act and of the rules made thereunder required to be displayed under Section 25 shall be in Form V.
22. Penalties.
Any contravention of Rules 3, 4, 5, 6, 7, 13, 16 or 20 shall be punishable with fine which may extend to two hundred rupees.
23. Repeal and savings.
The Bombay Payment of Wages Rules, 1937, as in force in the Bombay Area, the Hyderabad Payment of Wages Rules, 1937, as in force in the Hyderabad Area, the Coorg Payment of Wages Rules, 1937, as in force in the Coorg District, the Madras Payment of Wages Rules, 1937, as in force in the Madras Area, and the Mysore Payment of Wages Rules, 1952, as in force in the Mysore Area, are hereby repealed.