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Treatment of unpaid wages

Saurabh Verma (Sr. Account Executive) (59 Points)

09 March 2016

I want to know about is there is any provision to deposit of Unpaid Wages to Govt. for unclaimed amount for a specified period.

Please answer and also Quote if any Act or Notification or Any Treatment followed practically.

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4 Replies

sesha (accounts executive) (1101 Points)
Replied 09 March 2016

suppose unpaid wages should be treated salary payable or outstanding wages

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PRADEEP KUMAR VATS (Assistant manager) (430 Points)
Replied 09 March 2016

Dear Saurabh

In opinion, it will vary state wise.

For your reference, As per the punjab labour welfare fund act ,1965 :-

As per section 3,

Welfare Fund -–(1) The State Government shall constitute a Fund called the Labour Welfare Fund and, notwithstanding anything contained in any other law for the time being in force or in any contract or instrument, all unpaid accumulations shall be paid to the Board which shall keep a separate account therefore until claims thereto have been decided in the manner provided in section 9, and the other sums specified in sub-section (2) shall be paid into the Fund : 1. Substituted by Government of India S.O. No. 1301, dated 28th March, 1969 2. Section 2-A added by Govt. of India, S.O. No. 1301, dated 28th March, 1969. 3. Substitute for the words ―three years‖ by Haryana Act No. 1 of 2002. 4. Substituted for clause(4) of section 2 by Act No. 7 of 2007, dated 4th April, 2007. 3 (2) The Fund shall consist of-- (a) all fines realised from the employees ; (b) unpaid accumulations transferred to the Fund under section 9 ; (c) grants and subsidies to the Board made by the State Government ; (d) all voluntary donations ; (e) any fund transferred under sub-section (5) of section 10 ; [ X ]1 (f) any sum borrowed under section 11 2‘[;and] 3[ (g) any contribution of employers and employees.] (3) The sums specified in sub- section (2) shall be collected by such agencies and in such manner and the accounts of the Fund shall be maintained and audited in such manner as may be prescribed. 4[ ―(4) The employer shall be required to pay interest at the rate of twelve per cent per annum on the amount of unpaid accumulations in case he fails to deposit the same within a period of one year from the prescribed date. The rate of interest thereafter shall be twenty per cent per annum. (5) An employer who has already incurred the liability of payment of fine at the rate of twenty-five per cent at the time of commencement of the Punjab Labour Welfare Fund ( Haryana amendment) Act, 1988, shall be liable to pay interest at the rate of twenty per cent per annum from the date of commencement or from the expiry of two years from the date of incurring the liability of payment of fine, whichever is later.‖]

Unpaid accumulations‘ means all payments due to the employees but not made to them within a period of 3[two years] from the date on which they become due, whether before or after the commencement of this Act, including the wages, bonus and gratuity legally payable, but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees Provident Fund Act, 1952 ;

Hope you doubt will be resolved. Further, for your observation refer the state act applicable for you.

Pradeep Kumar