Dear Elders,
We are a leading boutique hotel, registered under Shops and Commercial Establishment Act. We have outsourced our security to another agency. The minimum wages were revised after we entered into the contract with them, wherein they had agreed not to hike their fees for at least one year. Now the security agency says that if it revises the rates paid to the guards as per MW, then we should bear the additional cost being the principal employer. Our management obviously thinks otherwise. Who is right here. Please help.
Regards,
Shalini
From India, Chandigarh
We are a leading boutique hotel, registered under Shops and Commercial Establishment Act. We have outsourced our security to another agency. The minimum wages were revised after we entered into the contract with them, wherein they had agreed not to hike their fees for at least one year. Now the security agency says that if it revises the rates paid to the guards as per MW, then we should bear the additional cost being the principal employer. Our management obviously thinks otherwise. Who is right here. Please help.
Regards,
Shalini
From India, Chandigarh
A Contract is an agreement between parties for fixed set of terms and conditions. If you have a registered Contract with the Agency alongwith its valididty period, it would hold good till then subject to the clause that the rates wont be increased till the contract term expires. If not, then you might have to work around on the increased rates and sharing the burden along with the agency...............rgrds
From India, Mumbai
19From India, Mumbai
There is no standard rule for this. It should be as per the agreement signed between the principal employer and the contractor.
If 'not to increase the fees for one year' is a clause in the agreement then contractor cannot do so under any circumtances. Everybody knows that minimum wages are revised after every six months so the contractor must be knowing that mwa will be revised at once in next one year. Contractor should have pointed out this at the time of signing of agreement itself.
But if such a clause is not mentioned in the agreemnet then it should be solved mutually.
regards,
Kamal
From India, Pune
If 'not to increase the fees for one year' is a clause in the agreement then contractor cannot do so under any circumtances. Everybody knows that minimum wages are revised after every six months so the contractor must be knowing that mwa will be revised at once in next one year. Contractor should have pointed out this at the time of signing of agreement itself.
But if such a clause is not mentioned in the agreemnet then it should be solved mutually.
regards,
Kamal
From India, Pune
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