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Assistant Professor, Department of Law
Concept & Definition of Wages
Wages means the monetary remuneration
paid by an employer to a worker in exchange
for work done.
According to Benham- Wages may be defined
as the sum of money paid under contract by
an employer to worker for services rendered.
J.R. Turner- Wages is price, it is the price paid
by the employer to the worker on account of
labour performed.
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Concept & Definition of Wages
According to H A Wolf- Wages are the payments
made for the use of labour in production.
According to Black’s Law Dictionary- Wages
means the payment for labour or services based
on time worked or quantity produced.
According to Dale Yoder -Wages are the
remuneration of the worker who use the tools
and equipments of their employers to produce
goods and services.
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Statutory Definitions
❑ Section 2(45) of the Bangladesh Labour Act, 2006
❑ Wages means all remuneration, expressed in terms of money payable to a
worker in respect of his employment or of work done and includes any other
additional remuneration of the nature aforesaid which would be so payable, but
does not include the following money:
❑ the value of any house accommodation, light, water, medical facilities or other
amenity or the value of any service excluded by general or special order by the
Government
❑ any subscription paid by the employer to any pension fund or provident fund
❑ any travelling allowance
❑ any sum paid to a worker for special expenses entitled to him by the nature of his
employment
Statutory Definitions
❑ Section 120 of the Bangladesh Labour Act, 2006
Special definition of wages
Wages also includes the following dues-
➢ any bonus or other additional remuneration payable under the terms of employment
➢ any remuneration payable for leave, holiday or overtime work
➢ any remuneration payable under order of any Court or any award or settlement
between the parties
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Statutory Definitions
➢ any sum payable under any agreement or for the reason of
termination of employment, whether by way of retrenchment,
discharge, removal, resignation, retirement, dismissal or by
whatever means
➢ any sum payable due to lay-off or suspension.
Leading Case References
Aravind Mills Ltd. vs K R Gadgil AIR 1941
Wages means wages actually earned and not potential wages.
State of West Bengal vs Bachu Mondal (1977)
Remuneration for overtime work is calculated as Wages.
Balaram Abhaji Patil vs MC Ragajiwala AIR 1961 Bom 59
The expression ‘wages’ covers all the amounts which , on fulfillment of the
terms of employment, become payable under the contract of employment
or under a statute or an award or decision of court.
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Leading Case References
Purshottom vs Poddar AIR 1966
Gratuity which may be payable to a worker by reason of his termination of
employment under the terms of agreement of his job will be considered as
Wages.
Divisional Superintendent, North Western Railway, Lahore vs Mohd.
Sharif 15 DLR (SC) 261
When the service of a worker is terminated without notice, in such case the
sum which is payable to him in lieu of notice will be considered as Wages.
Responsibility for Payment of Wages (Section 121)
Chief Contractor (If the
worker employed
Employer Executive Manager by the
Officer(CEO) Contractor)
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Leading Case Reference
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Fixation of Wage-Periods (Section 122)
Every person liable for the payment of
wages under section 121 shall fix wage
periods in respect of such payment.
No wage period shall exceed 1(one)
month.
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Time of Payment of Wages ( Section 123)
❑ The wages shall be paid before the expiry of 7 working day
following the last day of the wage period.
❑ In case of termination of worker by retirement, retrenchment,
discharge, removal, resignation the maximum payment period will
be 30 working days.
❑ All wages shall be paid on the working day.
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Payment method (Section 124)
Current Currency Bank Electronic
coin Notes Cheque Transfer
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Payment of unpaid wages of the dead or untraced workers ( Section 131)
❑ Nominee
❑ If there is no such nominee or for any reason, not possible to be
paid to the nominee, then the unpaid wages must be deposited to
the Labour Court.
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