‘‘Until this afternoon, the company’s bank accounts were subject to a garnishee order from the ATO [Australian Tax Office], which restricted the company from making any payment including wages,’’ Gujarat NRE said.

‘‘Due to special efforts on the part of the company, the ATO has now allowed the company to make a one-off payment for this week’s wages to its employees.

‘‘Every effort is being made to process this payment as quickly as possible and the company is hopeful that the payment will be finalised this week.’’

The Australian Tax Office had earlier advised the Mercury it was not stopping Gujarat NRE employees from being paid.

‘‘The ATO does not garnishee funds used to pay wages,’’ a spokeswoman said.

‘‘Superannuation guarantee debts take priority over all other tax debts. 

‘‘We encourage employees who have not received their super entitlement to get in touch with us – we follow up on every complaint.’’

Hundreds of workers at Gujarat NRE’s Illawarra mines remained off the job on Wednesday, having withdrawn their labour from the Russell Vale and Wongawilli mines.

Today marks 35 days since the miners were paid for work already done. They will meet this morning, to discuss the latest developments.

The Construction, Forestry, Mining and Energy Union confirmed on Wednesday it had been told that any funds new majority owner Jindal Steel and Power injected would be immediately seized by the Australian Tax Office under a garnishee order in place to recover Gujarat NRE’s debts to the ATO.

Union district vice-president Bob Timbs said the union had ‘‘acted in good faith and at face value of what they were told by the company’’.

‘‘Gujarat NRE had asked us on Friday to help lobby the ATO with regard to lifting the garnishee order with regard to paying the wages,’’ Mr Timbs said.

Insolvency law expert Peter Hegarty, a partner at Thomsons Lawyers in Sydney, said a garnishee order would not normally stop another company from being able to pay the workers’ wages.

‘‘There is nothing preventing a third party paying wages directly,’’ he said.

‘‘Needless to say, it does not resolve the position with respect to the ATO, whose debt would also need to be met by the debtor company.’’

Assistant Treasurer Arthur Sinodinos is the minister responsible for taxation and his office was aware of the situation, but did not comment on the matter on Wednesday.

As of Wednesday about 70 employees who are members of the union Professionals Australia  were still on the job.