How to Handle Employee Resistance to Signing Wage Sheets When Paid via Bank?

Hi, I run a housekeeping service provider agency, and we pay our staff's salaries through the bank, providing them with detailed wage information. At one of our sites, a condition of the tender is to obtain signed wage sheets from the employees. However, every month, the employees cause problems when asked to sign the wage sheets, which results in my payments getting stuck. This appears to be done deliberately. We cannot dismiss them as they have been working at the same site for 20-30 years.

Is it mandatory to get signed wage sheets when salaries are paid through the bank?

If so, what is the solution to handle this issue? The union at the site seems to encourage this kind of behavior instead of resolving the matter. Our client, a PSU company, is also unable to help and always advises us to maintain good relations with the union. The employees at the site are very aggressive and always ready to engage in conflicts. I am located in New Delhi, India.

Yes, according to the Indian Payment of Wages Act, 1936, it is mandatory for employers to maintain a wage register, and it is generally advisable to get it signed by the employees as proof of payment. However, if the wages are paid through a bank, the bank statement can be used as evidence of payment.

To handle the issue, you can take the following steps:

1. Communicate the Legal Requirement: Inform your employees that signing the wage sheets is a legal requirement and their refusal to comply can lead to legal complications. This might encourage them to cooperate.

2. Mediation: Engage a neutral third-party mediator to facilitate a resolution between you, the employees, and the union. This can be an effective way to address the concerns of all parties involved.

3. Legal Advice: Consult with a labor law attorney to understand your rights and obligations in this situation. They can provide you with legal strategies to resolve the issue.

4. Union Dialogue: Try to engage in a constructive dialogue with the union. Explain your concerns and try to find common ground that respects both the employees' rights and your need to fulfill legal requirements.

5. Client Involvement: If the client is a PSU company, they might have the ability to influence the union. Share your concerns with them and ask for assistance in resolving the situation.

Remember, it's important to keep all communications respectful and professional. Escalating the situation may lead to more conflicts and legal issues.