Wage Rights of Employees under Employment Law

10 Jul 2025 --
0 Comments

Wage Rights of Employees under Employment Law

Introduction

Wage rights refer to the entitlements of employees to receive fair and timely payment for the work they perform. These rights form a core part of employment law, which governs the relationship between employers and employees.

Key Principles of Wage Rights

Right to Receive Agreed Wages
Employees have the right to receive wages as per the employment contract or as per applicable terms agreed upon.

Timely Payment
Wages must be paid within the agreed time frame, whether weekly, monthly, or otherwise.

Minimum Wage Protection
Employees must receive at least the minimum wage fixed by applicable rules or agreed standards.

Equal Pay for Equal Work
Employees doing the same work under similar conditions are entitled to equal wages.

Deductions from Wages
Only lawful deductions (like taxes or agreed deductions) can be made; unauthorized deductions are prohibited.

Overtime Payment
Work beyond regular hours must be compensated according to agreed rates or applicable rules.

Protection from Unlawful Withholding
Employers cannot withhold wages without lawful reason.

Right to Claim Arrears
Employees can claim unpaid wages or arrears through appropriate remedies.

Illustrative Case Law Examples

🔹 Case 1: Timely Payment of Wages

Facts:
An employee’s wages were delayed repeatedly without justification. The employee refused to work until wages were paid.

Issue:
Does the employee have the right to insist on timely payment?

Holding:
The court held that the employee was entitled to receive wages on time. Delay without valid reason violated employment terms and labor principles.

Principle:
Timely payment is fundamental. Employers must pay wages promptly or face legal consequences.

🔹 Case 2: Unauthorized Deduction

Facts:
The employer deducted money from the employee’s salary as a penalty without prior agreement.

Issue:
Are such deductions lawful?

Holding:
The court ruled that deductions without employee consent or lawful authority are illegal. The employer must refund the amount.

Principle:
Only authorized and agreed deductions can be made from wages.

🔹 Case 3: Equal Pay for Equal Work

Facts:
Two employees performing the same work but one was paid less.

Issue:
Is differential payment justified?

Holding:
The court held that paying unequal wages for equal work violates wage equality principles unless justified by objective reasons.

Principle:
Employees doing similar work under similar conditions should receive equal pay.

🔹 Case 4: Overtime Compensation

Facts:
An employee worked extra hours but was not paid overtime.

Issue:
Is the employer obliged to pay for extra work?

Holding:
The court ruled the employer must pay overtime according to agreed terms or reasonable standards.

Principle:
Employees have the right to receive overtime wages for additional hours worked.

🔹 Case 5: Claim for Unpaid Wages

Facts:
An employee resigned but employer withheld last month’s wages.

Issue:
Can the employee claim the withheld wages?

Holding:
Yes. The court ordered the employer to pay all due wages plus any applicable interest.

Principle:
Employees can claim unpaid wages through legal remedies, even after termination.

Summary Table of Wage Rights

Right	Description
Right to Agreed Wages	Employees must receive wages as per contract.
Timely Payment	Wages must be paid on agreed dates without delay.
Minimum Wage	Wage must not fall below minimum agreed standards.
Equal Pay	Equal wages for equal work under similar conditions.
Authorized Deductions	Only lawful deductions permitted.
Overtime Pay	Compensation for work beyond regular hours.
No Unlawful Withholding	Employer cannot withhold wages unlawfully.
Right to Claim Arrears	Employees can recover unpaid wages legally.