Our company has its head office in Mumbai and a branch in Chennai. There are two types of workers in Chennai: Type 1 includes employees of the Mumbai head office deployed to Chennai for a limited period of 2-3 years, while Type 2 comprises employees of the Chennai branch recruited for and deployed at the Chennai branch.
Which state's minimum wages would be applicable in both these cases? Kindly advise.
From India, Pune
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Which state's minimum wages would be applicable in both these cases? Kindly advise.
From India, Pune
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Hi Namita,
An employee deputed to Chennai from Mumbai will obviously fall under the Maharashtra Minimum Wages Act, and employees who were recruited in Chennai will fall under the Tamil Nadu Minimum Wages Act, as the place of operation is in Chennai, Tamil Nadu.
Thank you.
From India, Madras
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1153An employee deputed to Chennai from Mumbai will obviously fall under the Maharashtra Minimum Wages Act, and employees who were recruited in Chennai will fall under the Tamil Nadu Minimum Wages Act, as the place of operation is in Chennai, Tamil Nadu.
Thank you.
From India, Madras
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Statutory minimum wages are fixed, and the Minimum Wages Act, 1948, is administered by the Central and State Governments in respect of scheduled employments respectively earmarked for each as per the definition of the term "appropriate Government" under the Act. Therefore, from the perspective of application, statutory minimum wages are always location-specific. In other words, the actual place of work of employees decides jurisdiction and not the place of authority of recruitment and control of their employment.
In this backdrop, the application of the provisions of the MW Act, 1948, to the employees of a company having its registered office in one state and branches in different states would be according to the norms prescribed by the respective state only where the employees actually work. Here, one should not be carried away by the intricacies of the meanings of terminology such as "deputation" or "transfer." What needs to be seen is where the actual employment continues substantially.
From India, Salem
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In this backdrop, the application of the provisions of the MW Act, 1948, to the employees of a company having its registered office in one state and branches in different states would be according to the norms prescribed by the respective state only where the employees actually work. Here, one should not be carried away by the intricacies of the meanings of terminology such as "deputation" or "transfer." What needs to be seen is where the actual employment continues substantially.
From India, Salem
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Hi Namitha,
In your case, the Tamil Nadu Minimum Wages Act applies to all employees working in Chennai, regardless of their appointment location.
Regards, Ganesh H. N. 09538151234
From India, Bangalore
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In your case, the Tamil Nadu Minimum Wages Act applies to all employees working in Chennai, regardless of their appointment location.
Regards, Ganesh H. N. 09538151234
From India, Bangalore
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If the company has a salary structure and policy in place by which the salary is above the minimum wage fixed by any state where its employees are working, then you need not worry about it. The problem occurs only when the employer is paying only at minimum wages.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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In reply to the post from Varghese Mathew, the salary in this case is above the minimum wages. However, as per the agreement with workers, the DA increase as per the minimum wages has to be affected for all the workers as and when the notification is released. Thus, we wanted to confirm which minimum wages notification to be followed in the case of Chennai branch employees.
From India, Pune
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From India, Pune
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