#wage payment

The Bombay High Court has ruled that credited salary amounts matched by corresponding bank withdrawals constitute legally sufficient proof of wage payment, overturning the Industrial Court’s assumption of paper transactions. This sets a critical precedent for employers facing unfair labour practice claims, shifting the burden to employees to prove non-receipt despite verifiable bank activity.

The Bombay High Court has ruled that under Section 21 of the Contract Labour Act, principal employers cannot evade statutory wage obligations merely by outsourcing labour. Even when contractors fail to pay minimum wages, the principal employer remains secondarily liable - ensuring workers’ rights are protected regardless of contractual arrangements. This reinforces the Act’s protective intent and expands accountability across supply chains.