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CS Professional · Labour Laws and Practice · Law of Wages

Vikram Engineering Ltd has been paying all workers in cash. The appropriate Government notifies the establishment as one whose employer must pay wages only by cheque or by crediting the bank account. What is the effect under the Code on Wages, 2019?

Once the appropriate Government notifies the establishment, wages must be paid only by cheque or by crediting the employee's bank account. The general freedom to pay in coin or currency notes no longer applies to that establishment, regardless of worker preference.

  1. ACash payment may continue if workers prefer it
  2. BWages must be paid only by cheque or by crediting the bank accountCorrect
  3. CWages may be paid by cheque or bank credit but also by currency notes at the employer's option
  4. DOnly the electronic mode is allowed, and cheque is not

Explanation

Generally wages may be paid in coin, currency notes, cheque, bank credit or electronic mode. However, the appropriate Government may notify establishments that must pay only by cheque or bank account credit. Once notified, cash payment is not allowed, and worker preference does not change this.

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