Payment Of Wages Act To Be Amended For Payment Of Wages By Cheque Or By Crediting Bank Account

Friends,

It is proposed to amend the Payment of Wages Act, 1932, providing for the payment of wages by cheque or by crediting the amount to a bank account. Please refer to the attachment for the draft amendment.

Thanks

Source:
http://labour.gov.in/sites/default/f..._amendment.pdf

Dear Mr. P.C. Agrawal,

Congratulations on your unstinting support, search, and self-update! Many thanks for your efforts, eagerness, and looking forward to serving through post; Cite HR Members for all events, government notifications, news, and updates - Garma Garam!

Keep it up!

RDS Yadav
Director, Navtarang HR Services
and Director, Future Institute of Management and Technology
Email: navtaranghrs@gmail.com

Respected Agarwal Ji,

Thanks for sharing the proposed notification on the amendment of the Payment of Wages Act, 1936. Members are requested to send their objections or suggestions, if any, to the Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 by December 16, 2016.

BS Kalsi,
Member since August 2011

This is a good move. Maharashtra made this amendment to the act almost 6 years ago. However, they should also make consequent changes so that signing every page of the contractor's payroll register with the words "paid before me" can stop.

Dear Mr. PC Agrawal,

Many thanks for always sharing information on Cite HR like notifications, news, and the latest updates.

Regards,
J L Trivedi

In the light draft notification of December 2, 2016, an ordinance was issued on December 29, 2016. However, the wording "Provided that the appropriate government may, by notification in the official Gazette, specify the industrial or other establishments, the employers of which shall pay wages to every person in such establishment only by cheque or wages credited to his bank account," conveys a different meaning. Is this an option for the State Government to make amendments?

Yes, each state government can make laws, but the central government may also enact laws that apply to the entire country.

Thanks, Mr. Banerjee. Would you please clarify if the ordinance dated December 29 would be applicable to the entire country, or should we wait for the amendment by the state government?

I was hoping some senior or lawyer on the forum would clarify. My question is the same - can the Center issue a notification for the entire country when it's a state subject? I guess we need to wait for the center to actually pass such a notification.

Mr. P.C. Aggarwal has started this thread. He is a legal person. I think he should clarify whether this amendment is applicable to the entire India or if states would have to issue separate notifications in this regard.

Dear Saswata Banerjee,

Though the Payment of Wages Act, 1936 is a Central Act and the Central Government could have easily made a general provision asking the employers to pay the wages either by cheque or by crediting the wages in their employees' bank accounts, it has been left to the State Governments to examine the feasibility, convenience, and other allied factors and issue notifications for the industrial establishments under their jurisdiction accordingly.

BS Kalsi
Member Since August 2011

Dear all,

The appropriate governing body under the Minimum Wages Act is the State Government. The Act has delegated power under the MW Act to the State Government to notify wage revisions, define categories, ensure its directions, resolve disputes, and administer its execution within its own state at local levels. Therefore, the Central Government cannot usurp the State Government's rights in an arbitrary manner for some things and leave others for the State Governments. It is logical and in accordance with the law of jurisprudence that the Centre, in the said amendment, gave this as an option to State Governments either to make rules for cash or through cheque payments.

Regards,
RDS Yadav