Employer Should pay the wages by electronic credit
Traditionally
the workmen, especially the contract workmen are paid wages in cash and in fact
the Contract Labour Regulation Act requires that the Supervisor
of the Principal Employer should be present to witness the payment of wages of
the contract employees. This puts tremendous pressure and burden of liability
on the Principal Employer and in the current scenario it is almost
impracticable.
While many
industries obtain authorisation from their workmen for payment of wages by
cheque/electronic credit, the States like Maharasthra have long back made
necessary amendments to the Payment of Wages Act. Recently, (Feb 2012), the
Kerala Government has also amended Section 6 of the Payment of Wages Act and
issued direction to pay the wages only either by cheque or by crediting the
amount in the bank account of the employees. Consequent to this amendment
payment of salary by cash is withdrawn. The notification is appended.
GOVERNMENT OF KERALA
Abstract
Labour &
Rehabilitation Department – Payment of Wages Act 1936 – Payment of wages in
private sector-
Payment either by cheque or crediting in Bank Account of the employees
concerned –Orders
issued.
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LABOUR &
REHABILITATION (E) DEPARTMENT
G.O.(Ms) No.26/12/LBR
Dated, Thiruvananthapuram, 16/02/2012.
ORDER
It has come to the
notice of the Government that some of the employers in the private
sector of the State
refuses minimum wages to their employees by issuing wage slips not on par
with the actual wages
paid, causing much extortion.
Section 6 of the
Payment of Wages Act, 1936 contemplates for the payment of wages in
the form of currency
notes or coins. There is a proviso also under the aforementioned section
to pay the wages
either by cheque or by crediting the wages in the bank account of the
employee concerned.
In the above
circumstances, Government are pleased to order that all the employers in
the private sector of
the State shall pay the wages either by cheque or by crediting the same in
the bank account of
the employees concerned hereafter to arrest the alleged extortion in
prevalence.
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