Non-Payment of Wages: Should Principal Employers Pay Contract Workers in Cash or Bank Deposit?

If a contractor fails to pay the wages of the workers, it becomes the responsibility of the principal employer to arrange for the payment of wages for the contractual laborers.

What should be the mode of payment of wages to contractual workers? By cash or deposit in their bank account?

Ideally, it should be done through a bank. However, if, by chance, an account is not available, you can pay such workers in cash and take their signatures as proof of payment. Then proceed to recover from the contractor, if he is still working with your company, or otherwise, absolve yourself of responsibility by making the payment on his behalf for that specific period.

It is mandatory to pay wages to contract labor through a bank only.

R. R. Kapoor
Vadodara

The wages should be paid with the corresponding deposit to EPF and ESIC authorities. Only then the compliance will be 100 percent.