Request for Issuing a Higher Payslip
The employee's actual salary is X amount. He is requesting to issue a payslip stating a salary of X+10k so that he can secure a loan of a higher limit. Credits in his bank account are also X amount. As an employer, can such a request from an employee be accepted, and can a payslip of a higher amount than the actual be issued? Do employers face legal consequences in doing so? Requesting experts to please provide your answers with legal provisions of relevant acts and rules.
Application of the Minimum Wages Act
If the organization is a consultancy service provider, does the Minimum Wages Act apply? Because the issuance of payslips is mandatory only as per the MW Act, and I don't see its mandatory requirement in any other statutes.
Thanking you.
From India, Visakhapatnam
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The employee's actual salary is X amount. He is requesting to issue a payslip stating a salary of X+10k so that he can secure a loan of a higher limit. Credits in his bank account are also X amount. As an employer, can such a request from an employee be accepted, and can a payslip of a higher amount than the actual be issued? Do employers face legal consequences in doing so? Requesting experts to please provide your answers with legal provisions of relevant acts and rules.
Application of the Minimum Wages Act
If the organization is a consultancy service provider, does the Minimum Wages Act apply? Because the issuance of payslips is mandatory only as per the MW Act, and I don't see its mandatory requirement in any other statutes.
Thanking you.
From India, Visakhapatnam
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Issue of the False Payslip
Never issue a false payslip to the verifying agency. If you do so, it will be considered that you were complicit in the fraudulent activity done by the employee.
By the way, there is a difference between an "incorrect" payslip and a "false" payslip. Errors may occur while working, leading to incorrect or wrong work. However, incorrect work is liable for corrections. On the other hand, intentionally deceiving by doing something not in line with reality is considered intentional deception. While maintaining a healthy relationship with employees is crucial, it must be within a legal framework. It is advisable not to cross legal boundaries.
Issue of Payslip
A payslip must be issued to each employee every month. This is not only a requirement of the Minimum Wages Act but also of the Factory Act or Shop and Establishment Act.
Thanks,
Dinesh Divekar
From India, Bangalore
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8071Never issue a false payslip to the verifying agency. If you do so, it will be considered that you were complicit in the fraudulent activity done by the employee.
By the way, there is a difference between an "incorrect" payslip and a "false" payslip. Errors may occur while working, leading to incorrect or wrong work. However, incorrect work is liable for corrections. On the other hand, intentionally deceiving by doing something not in line with reality is considered intentional deception. While maintaining a healthy relationship with employees is crucial, it must be within a legal framework. It is advisable not to cross legal boundaries.
Issue of Payslip
A payslip must be issued to each employee every month. This is not only a requirement of the Minimum Wages Act but also of the Factory Act or Shop and Establishment Act.
Thanks,
Dinesh Divekar
From India, Bangalore
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Understanding Payslips
A payslip is a document provided by an employer to an employee, indicating the month of disbursement, details of gross salary, deductions made by the company, name, designation, employee ID number, date of joining, father's name, bank's name, bank branch name, savings account number, details of leaves availed during the month, balance leave on credit, and loan details (loan amount, amount recovered so far, balance amount of loan due). The payslip shows the actual salary amount, total deductions, and the net salary amount disbursed or transferred to the bank. It is an authenticated, true document, and no additional amount can be added to it.
Definition of Employee Under the Minimum Wages Act
If you have appointed employees, "employee" refers to any person employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in scheduled employment where minimum wage rates have been fixed. This includes an out-worker to whom any articles or materials are given by another person to be made up, thereby falling under the Minimum Wages Act.
From India, Aizawl
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A payslip is a document provided by an employer to an employee, indicating the month of disbursement, details of gross salary, deductions made by the company, name, designation, employee ID number, date of joining, father's name, bank's name, bank branch name, savings account number, details of leaves availed during the month, balance leave on credit, and loan details (loan amount, amount recovered so far, balance amount of loan due). The payslip shows the actual salary amount, total deductions, and the net salary amount disbursed or transferred to the bank. It is an authenticated, true document, and no additional amount can be added to it.
Definition of Employee Under the Minimum Wages Act
If you have appointed employees, "employee" refers to any person employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in scheduled employment where minimum wage rates have been fixed. This includes an out-worker to whom any articles or materials are given by another person to be made up, thereby falling under the Minimum Wages Act.
From India, Aizawl
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The Risks of Issuing Fake Payslips
No employer should ever consider issuing a fake payslip or any other document. Based on a fake payslip, a loan may be granted beyond the capacity of the employee to repay. These are direct consequences of a fake payslip.
Transparency in Payroll Administration
The issuance of payslips makes administration transparent and open. Employees know what their pay is and the elements thereof. So, avoid getting your company and yourself in trouble. For all you know, the employee may, after taking the loan from X bank, leave your organization over time.
From India, Pune
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No employer should ever consider issuing a fake payslip or any other document. Based on a fake payslip, a loan may be granted beyond the capacity of the employee to repay. These are direct consequences of a fake payslip.
Transparency in Payroll Administration
The issuance of payslips makes administration transparent and open. Employees know what their pay is and the elements thereof. So, avoid getting your company and yourself in trouble. For all you know, the employee may, after taking the loan from X bank, leave your organization over time.
From India, Pune
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You are inviting trouble if you go beyond the actuals in this case. Never do that, as the lender may sue you, stating it was based on your 'false' statement [read payslip] that they gave the loan way beyond the actual amount, which might have been lent as a loan otherwise. You are running a company, not a kiosk, to even think along those lines.
Thanks and Regards
From India, Hyderabad
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Thanks and Regards
From India, Hyderabad
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