In our organization, we follow the rate of minimum wages prescribed for industries under Construction of Road & Building constructions (central rate). All the contractors who are into production and support service as per the rate stated above (as per Govt. norms).
The problem arises mostly with companies working under ERP dept. and who deal with works like Data Centre support, Networking, Software Development, SAP system installation, etc. Renowned companies are being engaged for such work that deploys their own manpower or third-party manpower at our premises for the execution of such jobs.
As far as my knowledge goes, any contractor who deploys manpower in our factory; their workers/employees should be paid minimum wages as per the rates of Govt. notification (central) for industries under Construction of Road & Building operations (which is applicable to our industry).
IT companies working in our organization and deploying manpower are paying salary/wages as per their own structure, in some cases, which are lower than the notified rate for our industry (which falls under Construction of Road & Building operations, etc.).
According to their logic, they do not fall under the scheduled employments of the minimum wages act, and there is no specific notification on the minimum wage for IT companies at either the central or state govt. (West Bengal) level. So, they have their salary structure and are not liable to pay the rate of minimum wages that our industry follows for deploying manpower at our premises.
Guidance solicited.
Regards,
DG
From India, Delhi
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4The problem arises mostly with companies working under ERP dept. and who deal with works like Data Centre support, Networking, Software Development, SAP system installation, etc. Renowned companies are being engaged for such work that deploys their own manpower or third-party manpower at our premises for the execution of such jobs.
As far as my knowledge goes, any contractor who deploys manpower in our factory; their workers/employees should be paid minimum wages as per the rates of Govt. notification (central) for industries under Construction of Road & Building operations (which is applicable to our industry).
IT companies working in our organization and deploying manpower are paying salary/wages as per their own structure, in some cases, which are lower than the notified rate for our industry (which falls under Construction of Road & Building operations, etc.).
According to their logic, they do not fall under the scheduled employments of the minimum wages act, and there is no specific notification on the minimum wage for IT companies at either the central or state govt. (West Bengal) level. So, they have their salary structure and are not liable to pay the rate of minimum wages that our industry follows for deploying manpower at our premises.
Guidance solicited.
Regards,
DG
From India, Delhi
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If you are scheduled employment as per Minimum Wages notification, all employees, whether they are employed by you directly or engaged through a contractor, should be paid wages as per rates prescribed for your industry. If employees of an IT company are engaged to do any work, they should be paid wages as per your industry, and the contractor cannot absolve from paying it on the ground that IT companies do not have a separate minimum wages notification. I am not sure about West Bengal, but in some other states like Kerala, there are separate notifications for IT companies.
If the contract is for a service, such as the installation of SAP, where you do not have any control or supervision over the individuals and the number of individuals who come for work, nothing above will apply because this is not a contract of service but a contract for service.
Madhu.T.K
From India, Kannur
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If the contract is for a service, such as the installation of SAP, where you do not have any control or supervision over the individuals and the number of individuals who come for work, nothing above will apply because this is not a contract of service but a contract for service.
Madhu.T.K
From India, Kannur
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