President clears ordinance to allow transfer or cheque payment of salary
Posted on: 29/Dec/2016 5:50:22 PM
The President of India, Pranab Mukherjee has given his nod to the bill to pay salary to employees of factories and companies via bank.
The new rule for paying salary for the year 2016 allows paying salary directly to the employees’ bank account as direct transfer or through cheque. For this, the company does not have to get approval from the employees beforehand. According to the Payment of Wages Act 1936, employees’ approval was mandatory if it has to be paid to them directly through bank.
Now, it is said that there is no need to get approval from the employees. This was launched on last 15th at the Lok Sabha. However, due to the cash crunch, there rose a chaos in the Lok Sabha because of which the amended ordinance was not implemented. Amid these, now, President Pranab Mukherjee has given approval to the bill now. This bill will come to effect after 6 months within which the Parliament approval has to be obtained.
