Transitioning to Bank Payments: Could Skipping the Wages Register Cause Legal Issues?

Dear Sir,

Previously, all of the employees did not have bank accounts. However, we have now facilitated the opening of bank accounts for all employees. Initially, they used to sign on the wages register when receiving their salaries. Since the bank accounts have been opened, they are no longer signing on the wages register.

Could this situation potentially lead to any legal issues in the future? If so, what steps should I take to address this?

Your guidance on this matter would be greatly appreciated.

Thank you,

Tridibesh Roy
HR Executive

After the bank credits the salary, the register should be signed for the safeguard of the employer.

Hi,

As per my knowledge, as a contract employee employer, we can mention the bank account number of the employee at the employee's signature place. Additionally, as proof of payment, you can submit RTGS reference numbers. This type of process is accepted in Tamil Nadu, Karnataka, Telangana, Delhi, Uttar Pradesh, and Haryana.

The RTGS transfer amount with the account number and date is more than sufficient for the employer to prove that the salary was paid. You need to attach the same with the wage register. Also, inform the labor office of maintaining the salary transactions online.

There is no need to take their signatures.

Salary Payment Through Bank Transfer

I wish to point out the following for your information:

1. When the salary is paid through bank transfer into the employees' accounts, the signature on the wage register is not required at all.

2. You need to maintain a virtual salary register with transfer details.

3. In the olden times, a signature was mandatory as the salary used to be in cash, and hence acknowledgment was required as proof of payment of salary/wages.

4. This is a recognized practice by government authorities.

5. Our Prime Minister has been advocating for this; hence, the digital proof to maintain the payment and its trail is available.

Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

Dear Friends,

Is there any black & white notification regarding the signature on the wages sheet, even if we are paying through the bank? One of my clients is not clearing my bill in the absence of a signature on the wages sheet, even though we are providing a bank statement along with the wages sheet. My client is saying it is mandatory to get a signature.

Thank you.