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Employer Should pay the wages by electronic credit



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 Consequent to this amendment payment of salary by cash is withdrawn.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.
-----------------------------------------------------------------------------------------------------------------------------
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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