- Bill enable employers to pay wages to workers through cheque or directly crediting to their accounts.
- The bill will replace the Ordinance promulgated by the President in December 2016 to amend the Payment of Wages Act, 1936
Key Provisions:
- Earlier, under the parent Act employer can pay his employee’s wages either by cheque or by crediting it into his bank account after obtaining his written authorisation.
- Bill now permit the employer to pay an employee’s wages:
- by cheque; or
- by crediting them into his bank account or
- in coin or currency notes.
- It removes the requirement of obtaining prior written authorization for payment of wages by cheque or through a bank account.
- It empowers Union or state government to specify certain industrial or other establishments where the employer should pay his employees only by:
- cheque; or
- crediting the wages in his bank account.