Labour Law- Payment of wages

Any contract where the whole or part of the worker’s wages is made payable in any other manner apart from legal tender shall be illegal, null and void. Therefore, it is illegal for your employer to attempt to pay you with things other than money.

 

A few other key things to note around wages is:

 

• It is illegal for any contract to be for the payment of wages at intervals exceeding one month unless with the written consent of the State Authority. This means if your employer makes you sign an employment contract where the employee is to be paid every quarter or every 6 weeks etc., such a contract is illegal.

 

• No employer can impose any restrictions as to the place and manner in which the employee can spend his/her wages. So, your employer can’t insist that you only buy lunch from the office canteen.

 

• Employers are not allowed to provide an advance of wages in excess of 1month wages

 

 

Source: HRLeverage