Kamalkantps
Advocate
+3 Others

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After the last amendment in the Idustrial Dispute Act, the appropriate Government in case of a PSU became Central Government and accordingly registration was done and license was obtained from Labour Office Central. In case of Minimum wages Act , there is no amendment so the defination of appropriate government remains that of state government. Does this means that even with registration with Central Labour Office, the wages to be paid to contract labourers will be those notified by state government. Please advice/discuss
From India, Lucknow
i also need clarification. I am registered with state government but given staff to PSU which is registered with Central. I feel the ppl are my employees, and the work is carried out in my state, so state government wages are applicable, am i right?
From India, Madras
Dear Sir,
In Public Sector Undertaking of Central Govt ,situated in any State , its workmen, if covered under minimum wages Act 1948, will be eligible for the minimum wages as per central sphere irrespective of whether they are employed direct, through agent or through contractor.
Employees include staff as well as workmen under ID Act. Payment of Wages Act 1936 applies to employees drawing wages upto certain ceiling limit.If they are drawing wages beyond the ceiling limit they have no remedy under the Payment of Wages Act 1936. Am I correct or wrong?

From India, Delhi
Dear Sir,
In Public Sector Undertaking of Central Govt ,situated in any State , its workmen, if covered under minimum wages Act 1948, will be eligible for the minimum wages as per central sphere irrespective of whether they are employed direct, through agent or through contractor.
Employees include staff as well as workmen under ID Act. Payment of Wages Act 1936 applies to employees drawing wages upto certain ceiling limit.If they are drawing wages beyond the ceiling limit they have no remedy under the Payment of Wages Act 1936. Am I correct or wrong?
RL Dhingra ,Advocate
Labour Law Consultant,Delhi
email:[email protected]
09818309937

From India, Delhi
Dear All,
I second the answer given by Mr. Dhingra. Just to elaborate it. The definition of Appropriate Government given under Minimum Wages Act is given below:
(b) ‘‘appropriate Government'' means—
(i) in relation to any scheduled employment carried on by or under the authority of the 4 [Central Government or a railway administration], or in relation to a mine, oil-field or major port, or any corporation established by 5 [a Central Act], the Central Government, and
(ii) in relation to any other scheduled employment, the 6 [State Government];
As per the definition above any schedule employment carried on by central government of under the authority of central government the appropriate government would be Central Government. So minimum wage of the Central Sphere would be applicable.
Now lets take a scenario that a contractor who is not covered under the Contract Labour Act and gives his all other employees minimum wages as per state minimum wages will have to give the wages to the employees working under the Central Government PSU the minimum wages of Central.. Why?.. Because the employees are working in an establishment under the AUTHORITY OF CENTRAL GOVERNMENT and not under him only. Because if we give them state minimum wages the principal of equal pay for equal work will become applicable. Others would be getting their salaries on bases of Minimum Wages of center and how can you give them (Contractors Employees) lesser salary while those are also similarly placed.
In my considered opinion the employee will be eligible for Minimum Wages of Center and not that of state. However if the state minimum wages are more and you are already paying them more, you cannot reduce the same afterwards as in the case of Delhi. New joiners will be recruited at the lesser rates. Feel free to revert in case of any doubt.

From India, New Delhi
Hi Kamal,
Thanks for the Info, Just want to check if we are in ecom sector and my warehouse is based within airport jurisdiction at Delhi..As an Airline we are associated with Airport Authority/DIAL. Which minimum wage will be applicable for our contractual staff working within airport jurisdiction.

From India, Mumbai
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