Cabinet gives nod for e-transfer of wages
Strap: Industries can pay wages by cheque or bank account deposits
PTI
New Delhi
Promoting less-cash economy, the government on Wednesday brought in an ordinance to enable industries covered under the Payment of Wages Act to pay workers through cheques or crediting money into their bank accounts, although employers will have the option to pay in cash.
Labour Minister Bandaru Dattatreya had introduced The Payment of Wages (Amendment) Bill, 2016 in Lok Sabha on December 15 but it could not be passed because of continued disruption of the Winter Session of Parliament due to ruckus over demonetisation.
The decision to adopt ordinance route to amend the Act was taken by the Union Cabinet.
Trying to clear the air, Dattatreya told reporters at a press conference after the Cabinet meeting that employers will have the option of paying wages in cash after notification of industries by Centre and states.
Confusion prevailed earlier in the day whether it would be mandatory for employers of the industries notified by the Centre and states, to pay wages through cheques or by crediting the same into employees bank account.
The bill however clearly states that “appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account”.
The amendment enables the Centre as well as state governments to notify industries where employers shall have pay wages either through cheque or crediting that into workers' bank account.
Despite repeated queries the minister maintained that employers will have the option to pay wages in cash after the amendment in the Act through ordinance as well as the bill.
Dattatreya said however that the government has adopted the ordinance route because it was long pending demand of the trade unions.
Centre of Indian Trade Unions (CITU) General Secretary Tapen Kumar Sen said: “They are lying. The bill introduced in the Parliament clearly bars payment of wages in cash by industries notified by Centre and States. They just want to please Prime Minister Narendra Modi.” He also said, “It is not correct to take away workers' right to demand wages in cash amid currency crunch when the entire banking service in the country is in disorder facing an abnormal situation.
“This is not the right time for bringing this ordinance as workers are already going through tough times due to currency crunch following demonetisation.”
Blurb: The bill however clearly states that “appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account”
