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Dear Friends,
Please clarify the following...
Our company is rendering contract services for a Central Government Organization located in Chennai. Please clarify whether applicability of Minimum wages is as per Central Govenment Act or State Government Act.
Request your guidence in this regard
Regards,
Ramkumar
From India, Madras
Sub- Minimum Wages
There is no State Act on mimimum wages.There is only Central Act called the Minimum Wages Act 1948. However, the Minimum Wages Act permits the state Government to notify minimum wages for various establishments falling under it's jurisdiction.
Now your doubt is since you employed contarct labour for a central governement undertaking, whther minimum wages shallbe paid as per central govt. notification or state government notification. So far as minimum wages are concerned, they are payable as per the Government of Tamil Nadu notification since your establishment is located in (presumably) Chennai.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
Dear Mr. Saikumar,
Thanks for your clarification.
I have one more doubt in this regard. Could you please clarify why Central Government minimum wages is not applicable though the contract labour is employed at Central Government establishment.
Regards,
Ramkumar
From India, Madras
Dear Mr.Ramkumar

If you go through the Minimum Wages Act, you would see that the Act gives power to the "appropriate Government" to fix minimum rates of wages for certain employments. The term "appropriate Government" is defined in section 2(b) of the Minimum Wages Act. Specifically section 2(b)((i) states the scheduled employments for which the Central Government is the appropriate Government and section 2(b)(ii) states the scheduled employments for which the State Government is the appropriate Government. The term "carried on by or under the authority of the Central Government" has been interpreted by the Honourable Supreme Court and High Courts. The information furnished by you is not sufficient to apply the rulings of the Supreme Court and the High Courts and to find out whether in the case specified by you the appropriate Government is the Central Government or the State Government. Moreover in your post you have not specified the employment with reference to which your query is made.

With regards
From India, Madras
Sub-minimum wages

Dear Ram kumar

You need to approach the issue in the way Mr.Hari Krishnan explained.However, going by the brief details and your statement that you supplied contract labour to a central government organisation, the applicability of minimum wages to the contract labour will, in my view, be decided with reference to contractor's establishment but not with reference to Principal employer's establishment. Otherwise what happens is you may be supplying some contract labour to a central undertaking and some contract labour to a state undertaking and some to a private indutry. Thus you will be paying minimum wages to some contract workers as per state rates and to some of your contract labour at central rates. You may also shift some contract workmen from a state establishment to a central establishment or vice versa to meet any peculiar need or urgent need in the respective estbalishments. In such case , one day you will be paying minimum wages to the same contarct labour at state rates and on another day, at central rates.

If it is to be decided with reference to contractor's establishment, this anamoly will not be there, if so, your establishment being in private sector and located in Chennai, the appropriate government will be state Government and hence the minimum wages at state rates will be applicable, in my view.However, you can confirm it by contacting the Asst. Labour Commissioner(state) under whose jurisdiction, your establishment falls.

B.Saikumar

HR & labour Law Consultant

Chipinbiz Consultancy Pvt.ltd

Mumbai

022-28324234
From India, Mumbai
Dear Ram Kumar,
Minimum wages slab is different in Central Govt & State Govt. Kindly check the existing slab of Chennai.
As per your views your company going to have a Contract services for a Central Government Organization located in Chennai. That means for Labor License you will go to your Local Regional labor Commissioner office not District Labor commissioner office. Since your principal employer is covered under Central Govt. all the labor laws of Central govt. will be applicable to your organization also. Similarly Minimum wages slab of Central Govt. also applicable to your organization.
Experts need your comment.
Ratikanta Rath
From India, Durgapur
Dear Mr.Ratikanta Rath
I request you to see section 3 of the Minimum Wages Act. This section gives power to the appropriate Government to fix minimum rates of wages for EMPLOYMENTS and not minimum rates of wages for ESTABLISHMENTS. What rate of minimum wages have to be followed in the case of an employment through a contractor in a Central Government organisation and for which employment the Central Government has not fixed minimum rates of wages, but the State Government has fixed minimum rates of wages. I want to repeat that the employees are the employees of the contractor and not employees of the Central Government organisation and the appropriate Government for the employment is the State Government. I request you to offer your views.
With regards
From India, Madras
Dear Mr. V.Harikrishnan
currently my company is a mining based contractor. we are giving services to 7 Big mines in orissa. All the mines are registered under Central Govt. and their statutory records & returns as per mines act and come under Central Govt when central govt minimum wages revised we also revised our Salary pattern as per the updated Basic DA. we are taking all the statutory licence. return etc.
Ratikanta Rath
From India, Durgapur
Dear Sir, We are a Man Power supplying company in Maharashtra, and we have branch offices accross India,would like to clarify if we are supposed to pay minimum wages as per Maharashtra State govt.Jurisdiction or follow jurisdiction of govt's where our branch offices are located....
Whatever be the answer to my question, i shall appreciate if i could have a govt. document or a webpage/link stating the true facts....
From India, Mumbai
In my view, the branch falls under the jurisdiction of the Government of the State in which it is located for the purpose of the minimum wages. B.Saikumar HR& Labour Law advisor mumbai
From India, Mumbai
Appreciate your view but if i am not wrong it shouldn’t the wages be paid as per the Jurisdiction of the State where the head office is located.... Please correct me if i am wrong....
From India, Mumbai
Hello Citeians, Can anyone help me find out what is the rule26(6) of the central rule of minimum wage act 1948 describes. What is meant by those three asterisks(*)?
From India, Bhubaneswar
it will be difficult to trace the orinal Sub rule(6) of Rule (26) now since it was omitted in 1963. The Three asterisks indicate that the said sub rule was omitted in 1963 and is no longer in force.Trust, you stand clarified now, Miss confused.
B.Saikumar
From India, Mumbai
Dear Ram,
You have to pay minimum wages on the basis of your clients registration but it is also specified in the proviso under MW act that MW which is higher either central or state should be paid to workmen concerned.
Regards,
Sanjeev Kumar
From India, New Delhi
Dear Mr. Saikumar, Your view on employees working on different locations, whether there is any rule or decision by the court. Thanks Maharana 9004665640
From India, Mumbai
Dear Radhey Shyam

I had a re-look at this issue. It is a vexatious question. If you peruse Minimum Wages Act, Sec.3 of the Act is the relevant provision governing the issue. Sec.3 says that the apropriate government can fix minimum wages in respect of employments specified in the Schedule to the Act. It spells out two key factors to determine the issue as to payment of minimum wages namely 1) the appropariate government and 2) employment in which the contract labour are employed. Now the issue gains complexity when a contractor is registered under the State's Shops and Establishments Act and supplies contract labour to a central undertaking because the appropraite governments for the contarctor and for the principal employer are different.Thus two views are heard on this issue. One view maintains that since the contractor is registered under Shops and Establishments Act and the contract labour are the employees of the contarctor, the minimum wages notified by the State Government shall be paid. Another view is that even though the contract labour are the employees of the contractor, since the contractor has got labour license for employment in the central undertaking and the contarct labour are working in the employment of the principal employer(centarl undertaking), the minimum wages shall be paid as per the Central Goverment notification. Another twist to the issue may crop up whne the contractor undertakes the job of the principal employer at his (contarctor's) premises. Then in whose employment, the contract labour are deemed to be employed - contarctor's or principal employer's. Each view seems to have it's own valid grounds.I have not come across any case law specifically covering the situation like this.The prudent view seems to be that when both state government and centarl government notify minimumwages in respect of the same employment, it is better to pay the higher of the two. This is only a view on the issue. Others may have their own views

B.Saikumar

Mumbai
From India, Mumbai
Dear Sandeep, Plz go through the attachment as per M.W Act, it will help u. In case of any doubt feel free to ask. Thanks/regards Ratikanta Rath
From India, Durgapur

Attached Files
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File Type: pdf M.W Act 1.10.12.pdf (226.1 KB, 93 views)

Dear Thanku very much Bur weather Stone crusing rate is consider for the mining workmen ? As you have the exposure in mines can you guide me on CMPF isuue. THanks & Regards,

Dear Sandeep,
R u asking about manual stone crushing or stone quarry.if Workers engaged in Stone Mines for Stone Breaking and Stone Crushing then as per schedule 2 it will be applicable and if u r organization is doing any mining activities in stone quarry then schedule 7 will be applicable.
Can u tell more about CMPF ??
Thanks/regards
Ratikanta Rath
From India, Durgapur
Dear Ratikanta,
Thnaks lots
Actualy we having coal mines in Maharashtra State,and engaged one contrcator for Overburden removal and some contratual staff for Dispatch and general clerical jobs
So i want to no want should be the minimum wages for them.
2. It is came to our knowledge that these employees will convered under Coal Mines provident Fund act . As I have idea baout the Employee's Provident Fund But nothing about Coal Mines Provident Fund. Hence your requested to send the details if you have
Thanks & Regards,

Dear Sandeep,
Since i have experience in Iron Ore mines, Manufacturing industry and Shops Establishment only and in case of EPF we are directly link to EPF so can't give more input for coal mines. But as of my knowledge if u r using manual unskilled labour then u will pay minimum wages as per the coal industry.
Secondly u r true in ur organization Coal Mines provident Fund act will be applicable, directly approach to concern enforcement officer of your circle who can guide u in much better way starting from registration to everything and share the same info with us also.
Experts who already experienced in Coal Projects kindly give u r inputs on these matters.
Thanks/regards
Ratikanta Rath
From India, Durgapur



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