Employers, workers left in a quandary

[Informalisation and Labour Rights - Related News]

The sudden demonetisation policy and the consequent cash crunch have resulted in unusual repercussions for employers and wage workers. Employers are worried that once the wages of the seasonal, migrant, casual, temporary workers – whom they usually hire without a legal contract – are paid through cheque or direct deposits in bank accounts, it could be treated as 'proof of employment'. This could then help such workers to claim that they should technically be considered as part of the payroll and be made eligible for statutory benefits.