Anonymous
Hello Seniors,

I am working in the HR department as an executive in one of the corporate hospitals in AP. I am the only person dealing with all the HR activities individually and running the show without any hassles. I am not very aware of the statutory obligations concerning the Labour Department. Recently, my organization faced a penalty from the Labour Department for not paying the minimum wages to workers like permanent employees and contract labor.

I informed my management about this issue and cleared all the payments owed by us. Now, I am unsure how to approach the Commissioner of Labour. Could you kindly assist me with this matter and advise if I need to write a covering letter along with the proof of payments?

From India, Kakinada
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If you have paid the arrears, i.e., the difference between actual wages paid and the wages payable as per the minimum wages notification, you can prepare a statement to that effect with proof of receipt or bank statement in support of it and appear before the concerned officer (not necessarily the Labour Commissioner but possibly an Assistant Labour Officer) who has issued the order. Your appearance will be noted in the proceedings, and whatever explanation you provide will be recorded. Once both you and the Labour Officer sign, it becomes a statement. You can also submit proof of payment of the salary difference. There is no other formality.
From India, Kannur
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rkn61
699

As you have cleared all payments by conveying with your management, why do you want to write to the Labour Commissioner?

At the outset, you need to obtain the minimum wages stipulated by your State Government, and compare this with the present payment made by your organization. If your payments are higher than the minimum wages, then you can escalate the same with the higher-ups in the Labour Department and seek a refund if applicable.

If your purpose is only to apprise/inform the Labour Department for compliance, then it will be better if you address the same person who had signed the penal damage notice sent to you by the Labour department.

From India, Aizawl
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Thank you both for your valid replies. However, the issue is that we received the compliance directive directly from the Special Commissioner of Labour, and the inspection was conducted by our zonal Labour officer. When we approached the local Officer of the Labour department, they instructed us to submit the statements to the Commissioner of Labour only. Therefore, I need to address the concerned official with proof of payments. Kindly guide me on how to draft a covering letter regarding this matter.

Thanks in advance,
Kinvitha

From India, Kakinada
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As I said, it is nothing but appearance that matters. What is more important is the proof of compliance. If you have paid the difference, you can either explain the same and submit the proof in a personal hearing. Alternatively, if you prefer to send it by post, you can simply reference the letter issued by the Zonal Labour Officer. You can state, "Pursuant to the directions in the notice above mentioned, we have paid the salary difference to align with the minimum wages notification. We are providing the proof of payment for your review to resolve the legal action proposed."

This should suffice. If further clarification is needed, you should attend in person before the Officer or Commissioner and provide your statement. It is advisable to request a personal hearing in the covering letter to preempt additional inquiries. If you wish to request a personal hearing, you can add the following to the above sentence: "If you require any clarification on the submitted documents, we kindly request a personal hearing at your convenience."

This should be adequate.

From India, Kannur
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You should check at your end whether the wages and salary are being paid by your agency to different categories of employed persons as per the rates envisaged by the government under minimum wages. Let's take an example: the government has notified that the wages of a Nurse Grade A are Rs. X per day and Rs. Y per month for 8 hours of work. If you are paying her Rs. Z, and if Z is equal to or greater than X and Y, then there is no violation.

You can visit the office of Labour from where you received the notice to understand the source of the complaint. Without a complaint, the office would not impose a penalty unless there is a violation.

From India, Mumbai
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If the Labour Officer (Inspector) conducts an inspection of your work site, he is issuing an Inspection Report cum show-cause notice to the employer/contractor or Principal Employer under applicable labour laws. In the report, he clearly mentions the breach of Section/Rules under each enactment and also details any difference in wages if you have paid wages at a rate lower than the minimum wages or OT wages under the Minimum Wages Act.

If you do not comply with the observations mentioned in the inspection, he may file a prosecution before the Judicial Magistrate for offenses related to non-maintenance of registers, failure to display notices, or non-issuance of wage slips. He may also file a claim case before the Authority appointed by the Appropriate Government to decide on the claim amount. Both the Judicial Magistrate and the Authority under the Minimum Wages Act will provide you with an opportunity to submit your explanation and decide on the matter based on merit.

When the Judicial Magistrate decides the case, if you plead guilty, you must pay the fine. If convicted, you can either pay the fine or appeal to the appellate court. In the case of a claim, if you agree with the Authority's order under the Minimum Wages Act, you must pay the difference in wages with the compensation imposed by the Authority either to the workers directly and provide proof, or deposit the allowed amount in the account number mentioned in the Authority's order.

If the Inspector has only issued an inspection report, you must respond to the authority mentioned in the report and provide a copy of the reply to the inspector, along with relevant documents demonstrating that you have paid the minimum wages to your employees. If you have paid wages lower than the rates set by the appropriate government to any employee, you must pay the wage difference and provide proof with your reply.

In your case, related to the conditions of the license under the Contract Labour (Regulation and Abolition) Central Rules, Rule 25(2)(v)(a) & (b), where contract laborers and laborers employed directly by the Principal Employer perform similar work, you must pay the same wages to contract laborers as paid to regular employees by the Principal Employer. If you wish to argue that the work performed by contract laborers and the principal employer is different, the Inspector may file a case against the Principal Employer and contractor under the relevant rule. The Authority appointed to hear such cases may be the Dy Chief Labour Commissioner in the Central Government or Dy Labour Commissioner in the State Government.

In such a situation, the Inspector must submit various documents and evidence/witnesses to support the case, while the contractor and Principal Employer must prove the difference in the work performed by contract laborers and directly employed workers. The Authority will issue orders based on the evidence presented. If either party is dissatisfied, they can appeal to the High Court. Evaluate the stage of your case and take appropriate action.

From India, Pune
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