Part-II Non Payment of Salary-Illegal Deduction from Salary of Contract Staff

Subject: Part-II Non Payment of Salary-Illegal Deduction from Salary of Contract Staff

Dear Friends

In our last Blog  we had discussed Non Payment of Salary-Illegal Deduction from Salary of Contract Staff and in part I we dealt with the legal position on the individual claim by the Contract Staff.Now we deal with the provision for class action under Section 16 of the Payment of Wages Act, 1936 which is extracted below:

16. Single application in respect of claims from unpaid group -

(1) Employed persons are said to belong to the same unpaid group if they are borne on the same establishment and if deductions have been made from their wages in contravention of this Act for the same cause and during the same wage-period or periods or if their wages for the same wage-period or periods have remained unpaid after the day fixed by section 5.

(2) A single application may be presented under section 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group and in such case every person on whose behalf such application is presented may be awarded maximum compensation to the extent specified in sub-section (3) of section 15.

(3) The authority may deal with any number of separate pending applications presented under section 15 in respect of persons belonging to the same unpaid group as a single application presented under sub-section (2) of this section and the provisions of that sub-section shall apply accordingly.
As already informed in case the Staffing Entity delays the payment of Salary or F & F the aggrieved Employee will usually y send a demand or a Legal Notice and the Contract Staffing Company would need to comply with the demand to avoid the Legal proceedings .

Such a Notice should not be taken lightly . A secure set up for addressing such individual /group claims needs to be set up .

The Managing director or the Staffing Head of Business needs to direct the Pay Roll to send compliance report of pending claims.Non compliance will result in the Staffing Company being burdened with Legal proceedings.On failure it would be followed up with an application to the Local Appropriate Authority under the Payment of Wages Act as extracted below:

Form of Individual Application
[See sub-section (2) of section 15 of the Payment of Wages Act]

In the Court of the Authority appointed under the Payment of Wages Act, 1936 (4 of 1936) for ……………….. area.
Application No. ……….. of …….

Between A.B.C. ………………………………….. Applicant (through a legal practitioner/an official of …………………………….. which is a registered Trade Union.)
And X.Y.Z………………………………………………………opposite party:
The applicant states as follows:
1. A.B.C. is a person employed in the/on the factory/railway/industrial establishment entitled and resides at ……………………………………..
The address of the applicant for the service of all notices and processes is:
…………………………………………………………………………………
2. X.Y.Z., the opposite party, is the person responsible for the payment of his wages under section 3 of the Act, and his address for the service of all notices and processes is:…………………………………………………………………………………..
3. (1) The applicant’s wages have not been paid for the following wage-period(s)………………………………….(give dates)
Or A sum of Rs…………….. has been unlawfully deducted from his wages of amount for the wage-period(s) which ended on ……………… (give dates)
(2) [Here give any further claim or explanation].

4. The applicant estimates the value of the relief sought by him at the sum of Rs………………
5. The applicant prays that a direction may be issued under sub-section (3) of section 15 for –
(a) Payment of delayed wages as estimated or such greater or lesser amount as the Authority may find to be due.
Or Refund of the amount illegally deducted.
(b) Compensation amounting to ………………………
The Applicant certifies that the statement of facts contained in this application is to the best of his knowledge and belief accurate.

Signature or thumb impression of the
employed person, or legal practitioner or official
of a registered trade union duly authorized.

There is also a provision for Group action as per the following format :

Form of Group Application
[See sub-section (2) of sections 15 and 16 of Payment of Wages Act]

In the Court of the Authority appointed under the Payment of Wages, Act, 1936 (4 of 1936) for ………………….. area

application No………………… of …………

Between A.B.C…………………………………………………
Applicants
A legal practitioner
(through a legal practitioner/an official of …………………………….. which is a registered union).

And X.Y.Z………………………………………………. Opposite Party.

The applicants state as follows:
1. [The applicants whose names and permanent addresses] appear in the attached schedule are persons employed in the /on the /factory/railway/insustrial establishment entitled and resides at …………………………….
The address of the applicants for service of all notice and processes is:
………………………………………………………………………….
2. X.Y.Z. the opposite party, is the person responsible for the payment of wages under section 3 of the Act, and his address for the service of all notices and processes is:
…………………………………………………………………………….
3. The applicants’ wages have not been paid for the following wage-period(s):
……………………………………………………………………………..
4. The applicants estimate the value of the relief sought by them at the sum of Rs…

5. The applicants pray that a direction may be issued under sub-section (3) of section 15 for:
(a) Payment of the applicants’ delayed wages as estimated……………. or such greater or lesser amount as the Authority may find to be due.
(b) Compensation amounting to…………….
The Applicants certify that the statement of facts contained in this application is, to the best of their knowledge and belief, accurate.

Signature of thumb impression of two of the
Applicants, or legal practitioner, or an official of
A registered trade union duly authorized.

SCHEDULE
__________________________________________________ ______________________
S.No. Name of Applicant Permanent Address
__________________________________________________ ______________________
1 2 3

Circulation of these Forms to the Temporary Staff and making it a part of the Joining Kit is the Key to achieving Fair Practice Standards in the Contract Staffing Industry.

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants