If we hire say guards for our company from any guard providing company and sign a contract on X rate. Would we be liable for the payment to guards by their parent company as per min wages act?
From India, Pune
From India, Pune
When you hire man power from an outside agency your position will be of that of Principal employer and as such you have to ensure that contract labour engaged by the contractor at your site are paid minimum wages. If minimum wages is not paid by the contractor, being the principal employer, you will have to pay the difference and make it equal to minimum wages. Certainly, you can collect the amount so paid by you from the contractor.
Regards,
Madhu.T.K
From India, Kannur
4239Regards,
Madhu.T.K
From India, Kannur
Thanks a lot Madhu, Your feedback is really helpful. But I need to show this information to our management. Can I find this information in any Govt policy, say min wages policy or so?
From India, Pune
From India, Pune
Please refer Minimum Wages Act wherein an employer has been defined as a person who employs workers either directly or through another person. That means contract labour. Also refer Contract labour (Regulation and Abolition) Act in which the principal employer's liability is clearly stated [section 21(4)]
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Member,
As clarified by Mr. Madhu T K the employer/principal employer is bound to pay minimum rates of wages as notified by the appropriate government as per section 12 of M W Act, 1948. Employer is defined at section 2(e) of this Act which shows that the PE is also employer for contract workmen & thus responsible to ensure payment of minimum rates of wages to the contract employees.Plz also go through your applicable minimum rates of wages appropriate Govt. notification as this may also contain specific instructions for employers to ensure minimum rates of wages to the contract workmen. In our case in the state of Haryana the minimum wages notification clearly shows that where any categories of the workmen are engaged/employed through contractor, the occupier/the employer will be personally responsible for ensuring the payment of minimum rates of wages by the contractor.
[SIZE=1][B][COLOR=red][FONT=Verdana]R.N.KHOLA
From India, Delhi
As clarified by Mr. Madhu T K the employer/principal employer is bound to pay minimum rates of wages as notified by the appropriate government as per section 12 of M W Act, 1948. Employer is defined at section 2(e) of this Act which shows that the PE is also employer for contract workmen & thus responsible to ensure payment of minimum rates of wages to the contract employees.Plz also go through your applicable minimum rates of wages appropriate Govt. notification as this may also contain specific instructions for employers to ensure minimum rates of wages to the contract workmen. In our case in the state of Haryana the minimum wages notification clearly shows that where any categories of the workmen are engaged/employed through contractor, the occupier/the employer will be personally responsible for ensuring the payment of minimum rates of wages by the contractor.
[SIZE=1][B][COLOR=red][FONT=Verdana]R.N.KHOLA
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Manpower Contract Agreement-Forma t.doc
Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf