Minister of Labour and Employment, Mr. Bandaru Dattatreya introduced the Payment of Wages (Amendment) Bill 2017 in Lok Sabha. Lok Sabha passed the bill on February 7, 2017. This Bill amends the Payment of Wages Act, 1936. This bill aims to put more workers in formal employment and allow more workers with social security benefits.
Highlights of Payment of Wages Bill:
- Once the Bill becomes active as law, it will repel the Payment of Wages (Amendment) Ordinance 2016, declared on 28 December to affect cashless transactions.
- The ordinance, and the now the bill follows the demonetization of Rs. 500 and Rs. 1,000 bank notes on 8 November.
- According to the new Bill, the employer is permitted to pay an employee’s wage by cheque or by crediting them into his/ her bank account or in coin or currency notes.
- No written prior authorization is required for payment of wages by cheque or through a bank
- It also enables Union or State government to define certain industrial or other establishments where the employer will pay his/ her employees only by cheque or crediting the wages in his/ her bank account.