Dear Seniors, Wanted to ask about daily wages workers - is gratuity, shop & establishment act and minimum wages act, etc. are applicable for Daily wages workers & can we pay salary in cash to them?
From India, New Delhi
2From India, New Delhi
Daily wages, weekly wages, monthly wages has nothing to do with statutory compliance. Skill differentiation is the organizations' need ( already mentioned in new wage rule ).
If the employees are engaged in factory - Factories Act and in case of S & E it will be S & E Act . Minimum wages act, PF, ESIC, Bonus, Gratuity etc. will also be applicable irrespective of working at Factory or Establishment.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
If the employees are engaged in factory - Factories Act and in case of S & E it will be S & E Act . Minimum wages act, PF, ESIC, Bonus, Gratuity etc. will also be applicable irrespective of working at Factory or Establishment.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
Dear colleague,
To provide right answer to your query, there are some basic particulars are required.
1 Your establishment is a factory or commercial establishment?
2 .what is the business of the establishment.
3. What is employee strength category wise, workers, supervisors, managers etc
4 which state are you located.
Whether daily wage- rated , monthly rated/paid has nothing to do with the applicability of the most of them mentioned by you.
Minimum wages Act, applies to the scheduled employments given in the Act. But others are applicable depending on the number of 'workmen' in the organization drawing certain prescribed wage limit.
Besides applicability of some of these laws will radically change from 1st April '21, with new amended laws.
Therefore, applicability of several laws has to be carefully examined before venturing into any sane replies.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
To provide right answer to your query, there are some basic particulars are required.
1 Your establishment is a factory or commercial establishment?
2 .what is the business of the establishment.
3. What is employee strength category wise, workers, supervisors, managers etc
4 which state are you located.
Whether daily wage- rated , monthly rated/paid has nothing to do with the applicability of the most of them mentioned by you.
Minimum wages Act, applies to the scheduled employments given in the Act. But others are applicable depending on the number of 'workmen' in the organization drawing certain prescribed wage limit.
Besides applicability of some of these laws will radically change from 1st April '21, with new amended laws.
Therefore, applicability of several laws has to be carefully examined before venturing into any sane replies.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
Dear Archi,
Mode of payment of wages is not the sole criterion for determining one's employment status i.e permanent, temporary, casual and the like. One can be temporarily employed on a permanent job. Therefore, it is the nature of job and the continuity of a person's service in the organization which are decisive in the matter.
Status of employment and mode of payment has no relevance for the application of any establishment-specific labor law like the Shops and Establishments Act, if the person is wholly and principally employed in the services of the establishment.
Application of the PG Act to such daily wager depends upon the applicability of the Act to the establishment and his completion of the minimum qualifying service in the establishment.
If the employment is a scheduled one, automatically statutory minimum wages are to be paid to daily wagers also.
Disbursement of wages by cash is not prohibited.
From India, Salem
Mode of payment of wages is not the sole criterion for determining one's employment status i.e permanent, temporary, casual and the like. One can be temporarily employed on a permanent job. Therefore, it is the nature of job and the continuity of a person's service in the organization which are decisive in the matter.
Status of employment and mode of payment has no relevance for the application of any establishment-specific labor law like the Shops and Establishments Act, if the person is wholly and principally employed in the services of the establishment.
Application of the PG Act to such daily wager depends upon the applicability of the Act to the establishment and his completion of the minimum qualifying service in the establishment.
If the employment is a scheduled one, automatically statutory minimum wages are to be paid to daily wagers also.
Disbursement of wages by cash is not prohibited.
From India, Salem
Archi,
First get one thing clear.
What is a daily rated worker.
The term actually refers to someone who is paid wages on a per day rate. meaning he gets paid for the days worked.
This term would be correct if you had badli / temp workers who were actually paid on that basis. It does not make any sense for a proper shop even for those who are not confirmed / permanent workers.
If they are working for the entire month, they are entitled to wages for weekly off (they are entitled to it even if they work for 6 days of a month). They are also entitled to paid holidays and EL / PL based on your state laws (mostly applicable once they have worked for 3 months)
If they have worked for even a day, Shop & Establishment Act applies.
If they have worked for 5 years (240 days a year, not service breaks), gratuity act will apply.
Minimum Wages Act applies, ESIC applies, PF applies. Overtime wages for work beyond 9 hours a day also applies.
Payment of statutory bonus also applies.
In most states, wages can no longer be paid in cash. They have to be paid by bank transfers or crossed account payee cheques. (See amendment to sec 6 of Payment of Wages Act made 3 years ago).
Paying by bank transfers also protects you as there is proof of what you paid and allegation that you under paid, does not hold ground. If you paid in cash, the court tends to believe the worker when they claim you did not pay full wages, or made arbitrary deduction, etc.
From India, Mumbai
First get one thing clear.
What is a daily rated worker.
The term actually refers to someone who is paid wages on a per day rate. meaning he gets paid for the days worked.
This term would be correct if you had badli / temp workers who were actually paid on that basis. It does not make any sense for a proper shop even for those who are not confirmed / permanent workers.
If they are working for the entire month, they are entitled to wages for weekly off (they are entitled to it even if they work for 6 days of a month). They are also entitled to paid holidays and EL / PL based on your state laws (mostly applicable once they have worked for 3 months)
If they have worked for even a day, Shop & Establishment Act applies.
If they have worked for 5 years (240 days a year, not service breaks), gratuity act will apply.
Minimum Wages Act applies, ESIC applies, PF applies. Overtime wages for work beyond 9 hours a day also applies.
Payment of statutory bonus also applies.
In most states, wages can no longer be paid in cash. They have to be paid by bank transfers or crossed account payee cheques. (See amendment to sec 6 of Payment of Wages Act made 3 years ago).
Paying by bank transfers also protects you as there is proof of what you paid and allegation that you under paid, does not hold ground. If you paid in cash, the court tends to believe the worker when they claim you did not pay full wages, or made arbitrary deduction, etc.
From India, Mumbai
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Brief Kerla Shop & Establishment Act.pdf
Gratuity Act-Teachers-Ma dhya Pradesh.docx