Govt may abolish payment of wages by cash under amended labour rules

Ministry of labour has issued draft rules to seek suggestions on the matter

In another initiative towards a less-cash economy, the Bandaru Dattatreya-led Ministry of Labour and Employment has notified draft rules which could mean that employers of firms, possibly belonging to a specified class of establishments, would pay their workmen wages only by cheque or by crediting the amount to their bank accounts. 

The notification, which was issued on March 17, contains draft rules for amending the Contract Labour (Regulation and Abolition) Central Rules, 1971. The draft rules will be taken into consideration after the expiry of a period of thirty days from the date on which the copies of the Official Gazette in which this notification is published are made available to the public. 

Under the rules, to be called as the Contract Labour (Regulation & Abolition) Central (Amendment) Rules, 2017, rule 69 of the original Act will be substituted. 

Rule 69 reads: "All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the workman". This could be amended to establishments or a certain class of establishments paying "the wages only by cheque or by crediting the wages in his bank account". 

The notification seeks suggestions and objections from all affected parties. It comes after a previous notification, also issued in March, which notified draft rules that would allow a principal employer or contractor hiring contract labourers to file a unified annual return under the Contract Labour (Regulation & Abolition) Act, 1970.