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Government order to pay wages only through Bank Account

labour-law

“The Government of Kerala on 9th May 2017 has notified industries and establishments where the employer has to pay the wages only by cheque or credit to bank account.”

The payment of wages act 1936 governs the payment of wages to certain class of person employed in certain industry. It is a Central Act which is adopted by the States. The central government passed an ordinance on 28th December 2016 since both the Houses of Parliament were not in session and since the benefits of the amendment should reach the employees at the earliest.

As per the Act wages may be paid in any form of legal tender i.e coins, currency . However the Central government amended the Act with effect from 28th December 2016 (Payment of Wages Amendment Act 2017 effective from date of Ordinance) to provide that the appropriate government having jurisdiction may notify industries and other establishment where the employer shall pay to the employee wages only by cheque or credit to bank account.

The Government of Kerala on 9th May 2017 has notified industries and establishments where the employer has to pay the wages only by cheque or credit to bank account. The Government notification is attached

Some of the industries and business covered in the notification are :

  • Chartered Accountant Office
  • Security Service
  • Shops and Establishments including hotels and resturants
  • Private Hospitals
  • Star Hotels
  • Private Educational Institutions
  • Rubber Crepe Mills

Roshan Thomas, FCA, DISA(ICAI)

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