Kozhikode: A recent order of the Labour Department to make salary disbursal through bank accounts has been thrown to the wind by some leading hospitals and hoteliers in the district. Protesting against the order, they also approached the Kerala High Court and secured a stay order.
According to department officials, the rule was to be followed by all private employers in the State from November 1, but only a few managed to make payments last month through bank accounts. The non-cooperation of hoteliers and hospitals will affect the government’s attempt to ensure minimum wages, they said.
“In Kozhikode district, only 20 commercial establishments have so far completed procedures to make salary disbursal through banks. Many are still expected to complete the formalities,” District Labour Officer P. Mohanan said. He made it clear that stringent prosecution measures would be initiated against those who failed to comply with the new rule from January 2017.
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Employers being monitored
The department has been monitoring the response of employers to the accounted transaction of salaries. The details of all employers who have already migrated to the new mode of salary payment are readily available with the department, enabling it to easily track violators.
Mr. Mohanan said the department would convene a special meeting of leading employers, including merchants, to create awareness about the new rule and the stringent penal action for purposeful violation. “It will only help employers shift from the conventional mode of salary disbursal. Maintenance of payment records too will be transparent under the new system,” he pointed out.
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In support of the move, the Lead Bank in the district even organised special camps for labourers in the organised and unorganised sectors to help them open bank accounts to facilitate transactions. Employers too have been directed to complete the account opening formalities free of cost using the services of any bank.