Is It Necessary for Workers to Sign the Leave Register if Salaries Are Deposited Directly?

I am working in the HR Department of a factory employing 33 workers and manufacturing biocompostable packaging bags in Gujarat (Ahmedabad). We have recently opened salary accounts for all employees, and their salaries are being deposited into them. As per the Factory Act, a leave register is mandatory.

Query on Salary Deposit and Worker Signatures

My query is, is it necessary for the workers to sign even if the salary is deposited directly?

Thanks,
Regards

Compliance with the Payment of Wages Act

The labor department is the competent authority under the Payment of Wages Act, and nowadays they are directing all employers to open bank accounts for even contract laborers. Therefore, submit a letter to the labor department stating that you have opened salary accounts in a particular bank and are depositing salaries directly into their accounts. Obtain an acknowledgment and submit a copy to the Factories department as well. File the acknowledgment copies in your office.

Every month, obtain a copy from the bank confirming the salaries have been deposited into the respective accounts and file it along with the pay sheet.

Regards,
Kamesh

Thank you so much for this query. You're saying that in your company, 33 employees are working. But now, I am working in consultancy, and 10 people are working. They are depositing salaries into salary accounts, and they are not receiving any receipts on paper.

Best Regards,
Ashok

Thanks, Kamlesh333, after submitting the copy to the Factories Dept., is it necessary to maintain the salary register and obtain the workers' signatures?

Thanks,

You must maintain the Attendance Register, Overtime Register (with an entry stating that "No worker has done any overtime during this month"), and Wages Register (it must match with the Attendance Register and minimum wages fixed by the Government of Gujarat), which will be checked by the Factories Inspector of your area. If the salary is deposited in the bank, it is better to keep a record to support your wage register so that you can prove the salary credit in the concerned employee's salary account to the Factories Inspector. Nil Registers are also required to be maintained, and Wage Slips should be given to the employees in Form 4B as per the Minimum Wages Act.

PF and ESI records should also be maintained to support the deductions shown in the Salary Register.

I agree with Kamesh. Apart from any attendance register, accountable documents are necessary for the Chartered Accountant for the audit and preparation of the Balance Sheet and P&L Statement at the end of the financial year.

Regards,
Shirish