Key Benefits:
The Minister may, after consultation with the registered organizations of employers and employees directly concerned, if such exist, by order published in the Gazette, exclude from the application of all or any of the provisions of this Part the wages paid to categories of employees whose circumstances and conditions of employment are such that the application to them of all or any of the said provisions would, in the opinion of the Minister, be inappropriate.
(1) A contract of employment may fix periods (in this Act each of which is referred to as a "wage period") in respect of which wages earned shall be payable:
Provided that-
(i) except in relation to casual employees as defined by section 2, no wage period shall be less than one week; and
(ii) no wage period shall exceed one month.
(2) Where the contract of employment is silent as to the wage period, such period shall be deemed to be one month.
Wages earned by an employee under his contract of employment shall, where it is reasonably practicable to do so, be paid before the expiry of the third working day immediately after the last day of the wage period in respect of which the wages are payable or, where it is not so practicable, as soon as it is reasonably practicable to do so:
Provided that, in the case of the completion of the period of employment, the total wages and other payments which may be due to an employee shall, where it is reasonably practicable to do so, be paid to him before the expiry of the third day immediately after the day on which the period of employment was completed or, where it is not so practicable, as soon as it is resonably practicable to do so.
76. Payment of wages, etc., on termination of contract of employment by employer
(1) Subject to this Act, the total wages and any other payments which may be due to an employee whose contract of employment has been terminated by the employer under section 18, 19, 20(2) or 26(1) shall, where it is reasonably practicable to do so, be paid by the employer on the day of the termination or, where it is not so practicable, as soon as it is reasonably practicable to do so.
(2) Any employer who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
77. Payment of wages, etc., on termination of contract of employment by employee
(1) Subject to this Act, the total wages and any other payments which may be due to an employee who terminates his contract of employment under section 18, 19, 20(2) or 26(2) shall be paid by the employer on the day of the termination where it is reasonably practicable to do so.
(2) Subject to this Act, the total wages and any other payments which may be due to an employee who terminates his contract of employment without giving prior notice in accordance with section 18, in circumstances in which he is required to give such notice, or before the expiry of any period of notice he may have given in accordance with that section, shall be paid by the employer before the expiry of the third day immediately after the day on which the employee terminated the contract of employment:
Provided that-
(i) where such third day is a rest day or public or other holiday, such wages and other payments shall be paid before the expiry of the first day immediately after the rest day or public or other holiday which is not a rest day or public or other holiday; and
(ii) the employer may deduct, subject to any order made by a court or the Commissioner to the contrary, from the total wages and any other payments which may be due to the employee such sum as the employee is liable to pay by virtue of section 19(a) or (b).
(3) Any employer who contravenes this section shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
78. Payment of wages, etc., to be made during working hours
(1) All payments of wages and any other payments which may be due to the employee shall be made on a working day and during working hours at or near the place of employment:
Provided that such payments may be made elsewhere than at or near the place of employment with the prior consent of the employee concerned.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
79. Prohibition of unauthorized deductions from wages, etc.
(1) Except where otherwise expressly permitted by this Act or any other written law, no employer shall make any deduction or make any agreement with any employee (whether or not the agreement is contained in the contract of employment) for any deduction from the wages to be paid by the employer or from any other payments which may be due to the employee or for any payment to the employer by the employee:
Provided that this subsection shall not apply to deductions deposited with the sanction of the Commissioner under section 45.
(2) Any employer who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(d).
80. Authorized deductions from wages, etc.
(1) Notwithstanding any other provision of this Act, an employer may-
(a) deduct from the wages and any other payments which may be due to the employee any amount due by him-
(i) in respect of any tax or rate imposed by law; or
(ii) as a contribution to any provident or pension fund or scheme established and maintained in accordance with regulations made under this Act to which the employee has agreed to contribute;
(b) with the consent of the employee, deduct from the wages and any other payments which may be due to the employee any amount-
(i) due to the employer by way of rental or service charges for quarters provided by the employer and occupied by the employee:
Provided that no such deduction shall be made where, by any custom, quarters are provided free of charge in addition to wages; or
(ii) the deduction whereof is provided for under any collective agreement made between any registered organization of employees of which the employee is a member and the employer or a registered organization of employers of which the employer is a member;
(c) subject to such limitations and conditions as are imposed by this Act or as may be prescribed, deduct from the wages and any other payments which may be due to the employee any amount which the employee has requested the employer to remit to any other person or body on his behalf; and
(d) make deductions from the wages and any other payments which may be due to the employee-
(i) in respect of unauthorized absence from work;
(ii) in respect of the actual cost of meals, or so much of the actual cost of meals as is not subsidized by the employer, supplied by the employer at the request of the employee;
(iii) in respect of such amenities and services supplied by the employer as may be authorized by the Commissioner;
(iv) in order to recover any overpayment of wages:
Provided that no deductions shall be made for this purpose unless the deductions are made in such a manner as will cause no undue hardship to the employee;
(v) in respect of contributions payable by the employee by virtue of any legislation which may for the time being be in force establishing a national provident fund;
(vi) in order to recover any basic pay which may have been paid to an employee in respect of annual leave granted by the employer before the completion of the period by virtue of which that leave would have been earned; and
(vii) for any other purpose which may be approved by the Minister.
(2) For the purposes of subsection (1)(d)(iii), "services" does not include the provision or supply of tools or raw materials required for the purposes of the employment in question.
(3) Notwithstanding any other provision of this Act to the contrary, where-
(a) an employer or any fund contributed to by an employer makes a loan to an employee;
(b) the total amount of the loan has been paid by the employer or the fund, as the case may be, to the employee in cash or by cheque; and
(c) a memorandum of the transaction has been made and signed by or on behalf of the employer or fund and employee providing for the repayment of the loan by one or more instalments,
the employer may deduct from any wages, ex gratia payments, severance pay, gratuities and payments for accrued leave due to the employee such instalments at such times as are set out in the memorandum:
Provided that-
(i) where regulations determine the maximum amount of loans or instalments and the terms and conditions upon which such loans may be made or recovered, no loan or instalment may be recovered in excess of the relevant prescribed amount nor may such loan or instalment be recovered upon terms more onerous to the employee than those provided for in such regulations; and
(ii) nothing in this subsection shall permit the recovery of any loan irrecoverable under any other law.
81. Limitation on attachments and assignments, etc.
Notwithstanding the provision of any law to the contrary, no court shall make an order for the attachment or assignment of the wages or any other payments which may be due to an employee such as seriously to jeopardize his wellbeing or that of the dependent members of his family.
82. Wages to be paid in legal tender
(1) Except where otherwise expressly permitted by this Act, the entire amount of the wages earned by and any other payments which may be due to any employee under his contract of employment shall be paid-
(a) to him in legal tender; or
(b) with his consent or at his request and subject to such limitations and conditions as may be prescribed-
(i) into a bank account maintained by him; or
(ii) to him by cheque, postal order or money order expressed in legal tender,
and every payment of, or on account of, any such wages or other payments made in any other form shall be null and void.
(2) Every employee shall be entitled to recover in court so much of his wages and any other payments which may be due to him, exclusive of sums lawfully deducted therefrom in accordance with this Act, as shall not actually have been paid to him in accordance with subsection (1).
(3) Any employer who enters into a contract of employment providing for the payment of wages or any other payments which may be due to the employee or pays wages or makes any other such payments contrary to this section shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
83. Agreement as to place or manner of spending wages illegal
(1) No employer shall impose in any contract of employment, any term which limits the manner in which an employee may expend the employee's wages or any other payments due to the employee after they have been paid to the employee, and every contract of employment which contains such a term, is void to the extent that it so provides.
(2) Any employer who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
84. Partial payment of wages in kind
(1) Nothing in this Act shall render null and void any contract of employment or other agreement with an employee solely by virtue of the fact that the contract of employment or other agreement provides for the payment of the employee's wages or other payments which may be due to him in the form of payments in kind, other than in the form of intoxicating liquor or noxious drugs, where-
(a) such payments in kind are appropriate for the personal use and benefit of the employee and his family; and
(b) the value attributed to such payments in kind is fair and reasonable:
Provided that any employer who enters into a contract of employment or other agreement with an employee under which the employer may or shall make a payment in respect of wages or of any other payments which may be due to an employee more than 40 percent of which payment is accounted for by a payment in kind or who makes such a payment shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
(2) Any employer who makes any payment of an employee's wages or other payments due to him wholly or in part in the form of intoxicating liquor or noxious drugs shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
85. Wages not to be paid on certain premises
(1) Wages or any other payments which may be due to an employee shall not be paid to him in premises used for the sale of intoxicating liquor or for the retail sale of goods, except in the case of an employee employed in such premises.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(b).
86. Authority of employer to open shop
(1) Nothing in this Part shall prohibit an employer otherwise lawfully entitled to do so from establishing a shop for the sale of provisions generally to the employer's employees or other people rendering services connected with the employer's undertaking; but no employee or other person shall be compelled by any contract of employment, agreement or order, written or oral, to purchase provisions at any such shop, or buy services operated in connection with that undertaking.
(2) Any person who compels or seeks to compel-
(a) any employee by any contract of employment, agreement or order; or
(b) any other person by agreement or order,
to purchase provisions at any such shop, or buy services operated in connection with that undertaking to employees or such other persons shall be guilty of an offence and liable to the penalties prescribed by section 151 (c).
(1) Any person who gives or promises to any other person any advance of wages or valuable consideration upon condition, expressed or implied, that such other person or any dependant of his shall enter upon any employment shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
(2) The amount of wages which may be advanced to an employee at the time of his engagement and the method of repayment thereof shall be as may be prescribed.
88. Prohibition of interest on advances
(1) No employer shall make deductions by way of discount, interest or any similar charge on account of any advance of wages made to an employee in anticipation of the regular period of payment of such wages.
(2) Any employer who contravenes subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(c).
89. Power of Commissioner to require security from employer
(1) The Commissioner may require any employer with whom any sums of money have been deposited by his employees for safe-keeping-
(a) to deposit with him a sum of money by way of security;
(b) to enter into a bond in the form prescribed for the due refund to the employees concerned of any moneys so deposited; or
(c) to place such moneys into a separate banking account which shall not be utilized for any purpose other than refunding amounts so deposited at the employee's request and paying interest earned thereon in accordance with subsection (2).
(2) Any interest earned on a sum of money deposited for safe-keeping with an employer by an employee shall be payable by the employer to the employee and shall be paid by the employer to the employee when and as often as the employee requires it to be so paid.
(3) Any employer who-
(a) fails to comply with a requirement made of him by the Commissioner under subsection (1) shall be guilty of an offence and liable to the penalties prescribed by section 151(b); or
(b) utilizes a banking account such as is referred to in subsection (1)(c) for a purpose forbidden thereby or fails to pay interest to an employee in accordance with subsection (2) shall be guilty of an offence and liable to the penalties prescribed by section 151(d).
90. Payment of wages for partial performance of contract of employment
(1) Subject to this Act and to the terms, expressed or implied, of the contract of employment, an employee shall be entitled to such wages in respect of the partial performance of his contract of employment as correspond-
(a) where the wages are calculated under the contract of employment by reference to any period of time, to the length of the period worked; or
(b) in any other case, to the amount of work performed.
(2) Any period during which an employee is on leave with pay and any weekly rest period in respect of which, by agreement or custom, the employee is not required to work under his contract of employment shall be deemed, for the purposes of subsection (1)(a), to be part of the period worked.
(3) Any employer who fails to pay the wages to which an employee is entitled by virtue of this section shall be guilty of an offence and liable to the penalties prescribed by section 151(b).
Notwithstanding the provisions of any other law, whenever any attachment has been issued against the property of an employer in execution of any judgment against him, the proceeds realized in pursuance of such execution shall not be paid by any court to the judgment creditor until any judgment obtained against the employer in respect of an employee's wages has been satisfied to the extent of a sum not exceeding three months' wages to the employee:
Provided that nothing in this section shall prevent an employee from recovering any balance due on such judgment by ordinary process of law.
(1) In the event of an employer's insolvency, an employee's claims arising out of his employment shall be payable out of the assets of the insolvent employer before non-privileged creditors are paid their shares.
(2) The protection referred to in subsection (1) shall extend to the following claims-
(a) the employee's claims for wages up to three months prior to the insolvency or to the termination of employment;
(b) the employee's claims for payment as a result of work performed during holidays within a period of twenty-four months prior to the insolvency or termination of employment;
(c) the employee's claims for any amount due to him in respect of other types of paid absence for a period not less than three months prior to the insolvency or to the termination of employment; and
(d) such severance benefits or other terminal benefits as the employee is entitled to.
92. Duty of employer to keep records, etc.
(1) Every employer shall keep such records, books and accounts in respect of employees employed by him as may be prescribed and every employer shall, at all reasonable times, afford every facility to the Commissioner or any labour officer for the examination of such records, books and accounts.
(2) Any employer who contravenes this section shall be guilty of an offence and liable to the penalties prescribed by section 151(b).
