Is It Mandatory to Pay Contract Laborers by Cheque or NEFT in Maharashtra and Tamil Nadu?

Dear All,

Good morning to all. I have a small query regarding paying contract laborers' payment. Is it compulsory to pay by cheque or NEFT bank transfer? If yes, please provide a notification for Maharashtra and Tamil Nadu.

Thanks,
Girish

All the provisions in the Payment of Wages Act refer to payment by cash, cheque, and credit to the employees' bank accounts. What's more important here is that you shall also maintain the payroll register. This register should include the names of employees, days worked, salaries/wages paid, and acknowledgments from the employees concerned. The register must be produced to the Labour Inspectors during inspections. There are no exemptions in any state. Even when the salary is credited to the employees' accounts, it's advisable to obtain and retain proof of the remittances made from time to time.