Shops and commercial establishments should not pay salaries in liquid cash and credit them to the bank accounts of their employees as per the latest instructions from the Labour Department. A directive to this effect has been circulated among employers for payment of November’s salary, say Labour Department officials.
The enforcement wing will closely monitor the process and initiate legal action against those who violate the order, they add. The government’s Wages Protection System or other payment gateways may also be used to disburse salaries.
More transparency
Officials say that the mandatory changes in the mode of payment are crucial to comply with the Union government’s demonetisation policy and related regulations. “It will introduce more transparency in the system and replace the conventional style of managing a number of manual registers as records of payments,” they say.
District Labour Officer P. Mohanan, who recently issued the department’s guideline to all employers in Kozhikode district, says the payment of salaries through bank accounts is the first step towards ensuring minimum wages to all employees as prescribed by the Union and State governments. The manual method of maintaining registers after paying liquid cash gives options aplenty for employers to project false figures and exploit employees, they add.
Monthly inspections
“We have come across several incidents in which employees are paid less than the amount mentioned in the register. Accounted transactions will naturally pave way for the authentic recording of payments,” Mr. Mohanan says.
He confirms that the department will carry out monthly inspections to check payment history and other records.
Meanwhile, the implementation of the new rule in the hospital sector may take time as some of the private managements have moved court raising objections to the new system and managed to win a stay order. However, the rule will be applicable for all other sectors as prescribed by the Labour Commissionerate.
Going cashless
Directive circulated among employers for payment of November’s salary
Aim is the ensure minimum wages for all, say officials
Initiative crucial to comply with post-demonetisation regulations
Labour Department asks shops to credit wages to staff accounts to ensure minimum wages
