Seeking Advice: How to Secure Advances for Cash-Paid Employees Without PDCs?

Request for Legal Guidance on Employee Security Measures

I am working with a construction company and need a favor from all my seniors. In my current company, we have an advance policy for all employees who are earning a salary of less than 40 thousand. According to the policy, we require post-dated checks (PDC) from them. However, in some cases, particularly in the construction industry, some employees receive their salary in cash and are unable to provide PDC to us.

I kindly request all my seniors to clarify the legal actions we can take as security from the employees, such as a bond or indemnity bond.

Regards,
Kalpana Rawat

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You mean to say that the company does not account for the salary of the employees. Is this itself an illegal practice? How do you calculate PF/ESI or any other statutory remittances? I think you need to streamline the salary process and fine-tune it to make it legal.

Dear Sanjay,

As I mentioned, they are all lower-level employees and they are not able to provide a PAN card, license, or election card. Although we are taking valid ID proof from them, i.e., a ration card or any letter authorized by a government body, we are completing the dossier part of all the employees. However, the bank will not accept all this for a salary account. As per my knowledge, for PF withdrawal, a bank account is required.

Regards,