Disbursement Of Wages To Contract Workmen Through Bank Salary Accounts

:confused:Dear Friends,
Section 6 of The Payment of Wages Act 1936, says that all wages shall be in current coin or currency notes or in both. Provided that the employer may after obtaining the written authorisation of the employed person pay him the wages either by cheque or by crediting the wages in his bank account.
What should be the contents in the written authorisation.
How the receipt of salary is obtained?
The applicability of register of wages?
Kindly suggest the merits and demerits that could arise by directly crediting the salary account. In my view I feel there are more merits in this procedure.
Kindly comment

Your question is about direct employees, I presume.
You can pay salary through bank. In such cases also you have to issue pay slips in the format prescribed. Wages register is also required to be maintained and signature obtained. This will be a tough job for HR where the number of employee is high and are spread over different departments/ units. If salary is manually distributed, every one will present in person and take salary putting signature on the register. But when it goes to bank, nobody cares HR's request to sign the Wages Register. Failure to get the signatures of emplyees will be viewed as if no salary has been disbursed. Though practically, a statement of salary snt to bank for credit to individual accounts of the employees is sufficient, legally Register is the document in support of salary payment. The basic merit of payment through bank is its easiness. Much time and energy can be saved. There is no need of finding fractions of fiftees/ tens and coins if the amounts go direct to their credit. But from the statutory poit of view, keeping records in hard form is mandatory unless otherwise permitted by the concerned officer in writing.

Regards,

Madhu.T.K

Dear Madhu,
A circular was issued by govt. of maharastra against the disbursement of Contract Labour Salary through bank.
Iam not getting that circular.
will anybody attached the same.
Regards
Shahu