Wages must be paid in legal tender. They may not be paid in promissory notes, vouchers or coupons. Payment in kind is allowed only where it is customary in that industry, must be fair in value, and must be for the personal benefit of the employee and the family.

Section 12A(1) prohibits payment by promissory note, voucher, coupon or anything other than legal tender. Section 12A(2) allows payment in kind only in industries where it is customary and subject to conditions, one of which is that equipment or clothing needed to protect the health and safety of the employee cannot be counted as part of the wage. The section goes on to regulate what may lawfully be deducted from pay.

Applies to: Every employer paying wages