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Yours is a tricky situation. Call the meeting of all workers and convey them that hereafter salaries cannot be paid in cash. This is a government regulation. If workers remain intemperate then you may take help of Labour Commissioner. If some Labour Officer visits the site and convinces them the benefits of payment through bank then it might help you.
15th January 2017 From India, Bangalore
Along with the discussion with the workers, I would suggest you to get in touch with a bank and ask the bank authority to visit your site and open the account of all the employees together.You can also negotiate with the bank on the total time taken for activating the bank account as the number of account is large.I feel this may give you a permanent solution to your issue and will help in smooth salary release.
16th January 2017 From India, Mumbai
Even when we have bank account fully mandated by KYC etc, we are not in a position to withdraw it. When I visited a Bank recently I heard a lady asking the banker very politely, "what is my eligibility????" The banker very proudly "announced" that your eligibility is Rs 24000 per week and that includes withdrawal through ATMs!!. What a pethetic question and what a stupid answer. Eligibility means the amount standing to the credit of my account and not lesser than that. Certainly, I intervened and asked, if I present a cheque and if I my account is short of just 1 rupee, don't you dishonour it stating "INSUFFICIENT FUNDS" and make mockery of it? Since anybody who questions is a man with black money, I did not say anything more. When this is the situation, why do you blame the poor workers??
16th January 2017 From India, Kannur
Have you covered all the labour under ESIC & PF? Though this is in their interest, invariably there will be an objection, as their share of contributions get deducted from their take home. There has been a cash crunch across the economy, which we all know, is not everlasting.
16th January 2017 From India, Mumbai
You can't remit worker's wages in someone else's account. What if that someone denies to pay amount to your worker?
You have just mentioned construction site which can be in very remote area. If there is no branch in proximity where you will open accounts & how the workers will be withdraw amount periodically? If you have bank branch nearby follow actions suggested herein.
Check your state rule for modus of payment of wages. If it is by cheque or RTGS and you have branch nearby you have to just patiently inform workers thru displayed notice about need of opening bank account. After a while you may take stringent action. If possible discuss the situation with labour office of your area.
17th January 2017 From India, Mumbai
The Payment of Wages (Amendment ) ordinance 2016 states that all wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee. Provided the appropriate Govt may, by notification in the official gazette specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account.
Industrial and other establishments is defined as tramway service, or motor transport service engaged in carrying passengers or goods or both by road by hire or reward
(aa) air transport service other than such service belonging to or exclusively employed in the military,naval or air force of the Union or the Civil Aviation department (of the Govt of India)
(b) dock, wharf or jetty
(c) inland vessel, mechanically propelled
(d) mine, quarry or oilfield
(f) workshop or other establishment in whch articles are produced, adapted or manufactured, with a view to their use, transport or sale
(g) establishment in which any work relating to the construction development or maintenance of buildings, road, bridges or canals or relating to operations connected with navigation, irrigation or to the supply of water or relating to the generation , transmission or distribution of electricity or any other form of power is being carried on;
You need to verify the Karnataka Rules and if they are contract labour then any notification in this regards has to be examined.
The strike indulged in by the labourers is illegal though it may not be unjustified. So also the act of obstruction of willing workers in unwarranted and illegal. If they are contract labours then you can ask contractor to terminate the errant workmen. As regards payment of wages for strike period, principle of no work no pay will apply. They can approach the machinery for claiming the same. Because demonetization is a reason beyond the control of the employer, therefore despite all the instructions if the accounts were not opened, the employer cannot be blamed for non payment.
17th January 2017 From India, Pune
Do not think that workers' strike are always illegal and lockouts by employers are always legal. That will destroy the dignity of HR
18th January 2017 From India, Kannur
27th January 2017 From India, Salem