Welcome!

Wages and their payment

Abdullah Mohammad Sharif

World University of Bangladesh

 Learning Objectives

Define the term wages from Discuss how wage board is

different viewpoints formed

Know the rules regarding Identify different compensation

deductions from wages schedules

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Wage

A wage is monetary compensation paid by

an employer to an employee in exchange
THIRD for work done

SECOND A payment usually of money for labor or services usually

according to contract and on an hourly, daily, or piecework basis
—often used in plural

FIRST All remuneration, expressed in terms of money or capable of being so expressed, which
would, if the terms of employment, expressed or implied, were fulfilled, be payable to a
worker in respect of his employment or of work done in such employment, and includes
any other additional remuneration of the nature aforesaid which would be so payable

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 Wage
Includes the following

1 Any bonus or other additional remuneration payable under the terms of employment

2 Any remuneration payable for leave, holiday or overtime work

Any remuneration payable under order of any court or any award or settlement between the
3 parties

Any sum payable under any agreement or this act for the reason of termination of employment,
4 whether by way of retrenchment, discharge, removal, resignation, retirement, dismissal or by
whatever means

5 Any sum payable due to lay-off or suspension

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 Responsibility for payment of wages

Every employer shall be liable to pay to workers employed by him all

wages required to be paid under this Act

Provided that in the case of all other workers, except any worker
employed by a contractor, the Chief Executive Officer, the manager or
any other person responsible to the employer for the supervision and
control of an establishment shall also be liable for such payment

Provided further that if the wages of a worker employed by the

contractor is not paid by the contractor, the wages of such worker
shall be paid by the employer of the establishment, and the same
shall be adjusted from the contractor

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 Fixation of wage-periods

Every person liable for the No wage period shall exceed

payment of wages under 1 (one) month
section 121 shall fix wage
periods in respect of such
payment

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 Time of payment of wages
The wages of a worker shall be paid before the expiry of the seventh
working day following the last day of the wage period in respect of
which the wages is payable

Where the employment of a worker is terminated by retirement or by his

retrenchment, discharge, removal by the employer or by termination of
employment by the worker or otherwise, all wages payable to him shall
be paid before the expiry of the thirtieth working day following the
day of termination of his employment

All wages shall be paid on the working day

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 Deductions which may be made from wages

1 2 3
Fines imposed deductions for deductions for
under section 25 unauthorized damage to or loss
(punishment) absence from duty of any goods given
under the custody
of a worker
4 5 6
deductions for deductions for deductions for
house- facilities and recovery of
accommodation service approved advances or loans
provided by the by the Government or adjustment of
employer overpayments of
wages 9
 Deductions which may be made from wages

1 2 3
Deductions of Deductions by Deductions for
income-tax payable order of a court subscriptions to
by the worker and for payment of
advances from any
provident fund
4 5 6
Deductions for Deductions made Deduction of
payment to any co- with the written subscription for
operative society consent of the the CBA union
approved by the workers for the through check-off
government contribution to system
any fund 10
 Deductions from wages for absence from
duty

May be made only, when he, by the terms of his employment, is required
to work, but he is absent for the whole or any part thereof

The amount of such deduction shall, in no case, be more than the

amount of wages payable to him for the period of absence

If ten or more workers in a body absent themselves from work without

notice and reasonable cause, wages of not exceeding eight days may
also be added to the deduction from wages from every such worker

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 Payment of unpaid wages of the dead
workers

Firstly
Secondly
All sums payable to a worker as wages shall, if not
possible to be paid due to his death or on If there is no such nominee or if, for any reason, not
account of his whereabouts not being known be possible to be paid to the nominee, be deposited with
paid to the person nominated by the concerned the labour court, and the court shall take measures in
worker in this behalf in accordance with the rules this behalf in accordance with the rules

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 Claims arising out of deductions from
wages

Where any deduction is made After the receipt of an

from the wages of a worker application under sub-
in contrary to the section (1), the Labour
provisions of this Act or Court shall give the
the wages of a worker is applicant and the employer
not paid or payment of his or any other person
wages or gratuity payable responsible for the payment
under any rule or dues from of wages under this Chapter
the provident fund is an opportunity of being
delayed, he or, in the case heard
of his death, any of his
heirs or any legal
representative may apply to
the Labour Court for
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recovery of wages
 What’s your
understanding?
Review for 5 minutes before you go to the
next topic.

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What other
issues we should
know regarding
wages?

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Welcome
Back!
 Establishment of the Minimum Wages
Board

The Government shall establish a Board to be called the Minimum

Wages Board

The Minimum Wages Board, hereinafter referred to in this Chapter as

the Wage Board, shall consist of the following members, namely
a) Chairman;
b) 1 (one) independent member;
c) 1 (one) member representing the employers; and
d) 1 (one) member representing the workers

The minimum rates of wages fixed for the workers employed in any
industry shall be re-fixed after every 5 (five) years on the
direction by the Government

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 Factors to be considered in making
recommendation

In making any The minimum rates of wage

recommendation, the Wages declared or published shall
Board shall take into be binding on all employers
account the cost of living, concerned and every worker
standard of living, cost of shall be entitled to be
production, productivity, paid wages at the rate not
price of products, less than the rates of
inflation, nature of work, wages so declared or
risk and standard, business published
capability, socio-economic
conditions of the country
and the locality concerned
and other relevant factors
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 Liability of the employer to pay
compensation

If a worker is bodily injured by an accident arising out

of the course of his employment, his employer shall be
liable to pay him compensation in accordance with the
provisions of this Chapter

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 Liability of the employer to pay
compensation
An employer shall not be liable to pay such compensation, if

A worker does not lose the The cause of injury to a

ability to work, in whole or worker, not resulting in
in part, for a period death, by the accident
exceeding three days due to directly attributed to
injury
(i) the worker having been at that time under the
influence of drink or drugs;
(ii) the willful disobedience by the worker of a
clear order or to rules made for the purpose
of securing the safety of workers
(iii) the willful removal or disregard by the worker
of any safety guard or other device which he
knew to have been provided for the purpose
of securing the safety of workers

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 Liability of the employer to pay
compensation
An employer shall not be liable to pay such compensation, if

Any worker, employed in any A worker, while in the

employment specified in service of an employer for a
“Part-A” of the third continuous period of not less
schedule, is attacked with than 6 (six) months in any
any disease specified employment specified in Part-
therein as an occupational B of the Third Schedule, is
disease peculiar to that of attacked by any disease
employment specified therein as an
occupational disease peculiar
to that employment

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 Payment of monthly compensation by
lump-sum

The employer may pay monthly If there is no such agreement

compensation payable to a and the payment of
worker by paying a lump-sum compensation continues for
amount on the basis of the not less than 6 (six) months
agreement between the the monthly compensation may
parties. be redeemed, on the
application of either party,
by the payment of such lump
sum amount as may be
determined by the Labour
Court

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Thank you!

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Did you check
the schedules?

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