President Pranab Mukherjee promulgated the modification to the Payment of Wages Act (Amendment) Ordinance, 2016 enabling employers with the right to credit employee salaries directly into their bank accounts. Prior to the modification to section 6 of the act, salary payments were made in ‘current coin or currency notes or in both’ or bank transfer of the employee’s salary after having taken the employee’s approval in writing for the same. The modification made to section 6 of the Payment of Wages Act, has done away with the requirement of taking the employee’s approval before making a cheque or online payment of his salary. The amended section 6 provides that ‘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 employee. Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account’.
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