Rule 98: Responsibility of payment of wages

Finin2min analysis — operative rule mechanics

Full notified text — Rule 98

98. Responsibility of payment of wages.- (1) The contractor shall fix the wage periods in respect of which
wages shall be payable and no wage period shall exceed one month.
      (2) The wages of every person employed as contract labour in an establishment or by a contractor shall
      be paid before the expiry of seventh day after the last day of the wage period in respect of which the
      wages are payable.
      (3) The principal employer shall settle the bills of contractor related to dues of contract worker within
      timeline as per the terms and conditions agreed between principal employer and contractor.
      (4) The wages shall be disbursed through bank transfer or electronically.

                 Provided that where it is not practicable to disburse wages through bank transfer or
    electronically, the wages shall be disbursed in current coins or currency.
    (5) The wages of contract labours shall be paid without any deductions of any kind, except those
    specified by the Central Government.
    (6) A notice showing wage period and date and time of disbursement of wages of contract labour shall
    be displayed at the place of work and a copy sent by the contractor to the principal employer
    electronically.
    (7) Every contractor shall send half-yearly return in FORM-XVIII electronically to the Deputy Chief
    Labour Commissioner (Central) concerned not later than thirty days from the close of the half year,
    that is to say January to June, July to December.
    (8) In case contractor fails to make payment of wages to the contract labour within seven days of
    completion of wage period, then the principal employer shall take necessary action and make payment
    of wages in full or the unpaid balance dues, as the case may be, to the concerned contract labour
    employed by the contractor within fifteen days and recover the amount so paid from the contractor
    either by deduction from any amount payable to the contractor under any contract or as debt payable
    by the contractor or from the security deposit lying with the principal employer.
    (9) Every principal employer of an establishment shall submit annual return in FORM-XVII (Part-
    III) electronically to the authority and concerned Deputy Chief Labour Commissioner (Central) so as
    to reach on or before last day of February following the end of each Calendar year electronically,
    except in cases of contract which undertakes to produce given result.

Application and evidence

1. Primary statutory test — (1) The contractor shall fix the wage periods in respect of which wages shall be payable and no wage period shall exceed one month.
2. Additional operative limb — (2) The wages of every person employed as contract labour in an establishment or by a contractor shall be paid before the expiry of seventh day after the last day of the wage period in respect of which the wages are payable.
3. Qualification / exception to test — Provided that where it is not practicable to disburse wages through bank transfer or electronically, the wages shall be disbursed in current coins or currency.
4. Numerical or timing control — Responsibility of payment of wages.- (1) The contractor shall fix the wage periods in respect of which wages shall be payable and no wage period shall exceed one month.
5. Code Section mapping — 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 119. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Prescribed-form link recorded in the corpus — XVIII. Confirm the current notified form/version before filing.

Cross-references & prescribed forms

Worked example

Q&A — Rule 98

Primary sources