The Labour Ministry has clarified that pending notifications by the Centre or States, the amendments being brought by the government to the Payment of Wages Act 1936 to pay wages through cheque or account transfers is not mandatory and the “option of payment through cash is still available with the employers.”
“This is not the correct position,’ it said in a release, adding “ the appropriate Government (Centre or State) will have to come up with the notification to specify the industrial or other establishments where the employer shall pay wages through cheque or by crediting the wages in employees’ bank account. It is, therefore, clear that the option of payment through cash is still available with the employers for payment of wages.”
Andhra Pradesh/Telangana, Kerala, Uttarakhand, Punjab and Haryana have already come out with notifications to provide for payment through banking channels, it said.
The Ministry also clarified that the proposed amendment to Section 6 of the Act will provide an ‘additional facility” to employers for paying wages through cheque along with the existing provisions of payment in current coin or currency notes.
The clarification comes following reports that the Union Cabinet on Wednesday had decided to take the ordinance route to amend the Act to pay salaries through cheques or electronically. Trade unions have earlier alleged that this is being rushed due to the ongoing currency shortage in the country following demonetisation of Rs 500/1,000 notes.
The Ministry said the proposed amendment would also ensure that minimum wages are paid to the employees and their social security rights are protected, as employers can no longer under-quote the number of employees in their establishments.
It said States, such as Andhra Pradesh/Telangana, Kerala, Uttarakhand, Punjab and Haryana have already come out with notifications to provide for payment through banking channels.
CITU protest on Jan 3
Demanding immediate payment of wages and making available adequate cash to workers, the Centre of Indian Trade Unions (CITU) said it will be holding country-wide protests on January 3 against the demonetisation drive of the BJP and its impact on the working people, such as unorganised sector workers, farmers, small businesses, traders and street vendors.
“Migrant workers employed in construction, brick kilns and plantations are being forced to go back to their villages as no work is available. Transport, automobile ancillary production, power looms etc have been seriously affected. Workers have not been paid their wages. In several places the employers are forcing the workers to share the cost of exchanging old notes,” CITU General Secretary Tapan Sen said in a statement.