Centre approves ordinances on Property Bill, Payment of Wages Act

The Centre on Wednesday has approved ordinances on Enemy Property Bill and clarified in a statement that it proposes to bring an amendment to Section 6 of the Payment of Wages Act will provided for crediting the wages of the employees into bank accounts.

The payment can also be made through cheques along with the existing provisions of payment in current coin or currency notes.

The government has also approved ordinances on enemy property bill and payment of wages act.

This is done to facilitate the employers from making payment of wages using the banking facilities also in addition to the existing modes of payment of wages in current coin or currency notes.

The appropriate state government 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 employee's bank account.

It is, therefore, clear that the option of payment through cash is still available with the employers for payment of wages.

It may be understood that the Payment of Wages Act was passed in the year 1936 and the situation prevailing at that point of time has completely undergone a technological revolution. Most of the transactions now take place through the banking channels.

The proposal of Ministry of Labour and Employment to bring an amendment to Section 6 of the Act is an additional facility of crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes.

The proposed amendment will also ensure that minimum wages are paid to the employees and that their social security rights can be protected. Thus, the employers can no longer under-quote the number of employees employed by them in their establishments to avoid becoming a subscriber to the EPFO or ESIC schemes.

It is also pointed out that the states like Andhra Pradesh, Telangana, Kerala, Uttarakhand, Punjab and Haryana have already come out with notifications to provide for payment through banking channels.

After the demonetisation drive the government is focusing on a cashless economy. The new procedure will serve the objective of digital and cashless economy.