Industrial Relations And Labour Laws
Labour Laws & Ir
Anju Batra
Good In Counseling

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If we hire say guards for our company from any guard providing company and sign a contract on X rate. Would we be liable for the payment to guards by their parent company as per min wages act?
When you hire man power from an outside agency your position will be of that of Principal employer and as such you have to ensure that contract labour engaged by the contractor at your site are paid minimum wages. If minimum wages is not paid by the contractor, being the principal employer, you will have to pay the difference and make it equal to minimum wages. Certainly, you can collect the amount so paid by you from the contractor.

Thanks a lot Madhu, Your feedback is really helpful. But I need to show this information to our management. Can I find this information in any Govt policy, say min wages policy or so?
Please refer Minimum Wages Act wherein an employer has been defined as a person who employs workers either directly or through another person. That means contract labour. Also refer Contract labour (Regulation and Abolition) Act in which the principal employer's liability is clearly stated [section 21(4)]

Dear Member,

As clarified by Mr. Madhu T K the employer/principal employer is bound to pay minimum rates of wages as notified by the appropriate government as per section 12 of M W Act, 1948. Employer is defined at section 2(e) of this Act which shows that the PE is also employer for contract workmen & thus responsible to ensure payment of minimum rates of wages to the contract employees.Plz also go through your applicable minimum rates of wages appropriate Govt. notification as this may also contain specific instructions for employers to ensure minimum rates of wages to the contract workmen. In our case in the state of Haryana the minimum wages notification clearly shows that where any categories of the workmen are engaged/employed through contractor, the occupier/the employer will be personally responsible for ensuring the payment of minimum rates of wages by the contractor.


Dear Madhu and Mr Khola,
Thanks for the information. It is quite useful and directs us to go further for our immediate issue.
Will look forward again to have such useful information in future too.

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