Home HR Checklist for Audit under Minimum Wages Act

Checklist for Audit under Minimum Wages Act

0
Checklist-Minimum Wages Act

1. Time & Conditions of Payment of wages and deductions- 
(a) in the case of establishments in which less than one thousand persons are employed, before the expiry of the seventh day,

(b) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day after the day on which his employment is terminated.

      2. The total amount of deductions, which may be made in any wage period, from the wages of an employee shall not exceed—


[wp_ad_camp_1]

a) 75 per cent of such wages in cases where such deductions are wholly or partly made for payments to Consumer Co-operative Stores ,and
b) 50 per cent of such wages in any other case

3. Any person desiring to impose a fine on an employed person or to make a deduction for damage or loss caused by him shall explain to him personally and also in writing the act or omission or the damage or loss, in respect of which the fine or deduction is proposed to be imposed or made and give him an opportunity to offer any explanation in the presence of another person.  All such fines imposed and deductions made shall be recorded in the registers maintained in Forms I and II, respectively. These registers shall be kept at the work spot and maintained upto-date. Where no fine or deduction has been imposed or made on or from any employee in a wage period, a ‘nil’ entry shall be made across the body of the relevant register at the end of the wage period, indicating also in precise terms the wage period to which the ‘NIL’ entry relates.
             Every employer shall send annually a return in Form III so as to reach the Inspector not later than the 1st February following the end of the year to which it relates.

4. Number of hours of work, which shall constitute a normal working day.

 The number of hours, which shall constitute a normal working day shall be—
 in the case of an adult, 9 hours;
 in the case of a child, 4 hours.

 The working day of an adult worker shall be so arranged that inclusive of the intervals for rest, if any, it shall not spread over more than twelve hours on any day.

 No child shall be employed or permitted to work for more than 4½ hours on any day.


5. Extra wages for overtime

(1) When a worker works in an employment for more than nine hours on any day or for more than forty-eight hours in any week, he shall, in respect of such overtime work, be entitled to wages at double the “ordinary rate of wages”.

Explanation.—The expression “ordinary rate of wages” means the basic wage plus such allowances including the cash equivalent of the advantages accruing through the concessional sale to the person employed of food grains and other articles as the person employed is for the time being entitled to but does not include a bonus.

(2) A register of overtime shall be maintained by every employer in Form IV in which entries under the columns specified therein shall be made as and when overtime is worked in any establishment. The register shall be kept at the work spot and maintained up-to-date. Where no overtime has been worked in any wage period, a ‘nil’ entry shall be made across the body of the register at the end of the wage period indicating also in precise terms the wage period to which the ‘NIL’ entry relates.
6. Register

A Register of Wages shall be maintained by every employer at the work spot in Form X.

(i) Every employer shall, in respect of each person employed in the establishment, complete the entries pertaining to a wage period—

(a) in columns 1 to 15 of Form X, before the date on which the wages for such wage period fall due ;

(b) in columns 16 and 17 of the said Form, on the date when payment is made, and obtain the signature or thumb impression of the employee in column 18 of the said Form on the date when payment is made.

(ii) A Wage Slip in Form XI shall be issued by every employer to every person employed by him at least a day prior to the disbursement of wages.

(iii) Every employer shall get the signature or the thumb impression of the every person employed on the Register of wages and wage slip.

(iv) Entries in the Register of Wages and wage slip shall be authenticated by the employer or any person authorised by him in this behalf.

[wp_ad_camp_2]


(v) A muster roll shall be maintained by every employer at the work spot in Form V and the attendance of each person employed in the establishment shall be recorded daily in that Form within 3 hours of the commencement of the work shift or relay for the day, as the case may be.
7.  Where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attribut¬able to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

[wp_ad_camp_3]