On the other hand, if the IT company is just giving you workers who do their job according to your directions using cables, connectors etc supplied by you, then you will be in the position of a Principal employer who will be responsible for ensuring payment of minimum wages and other statutory contributions. If so, certainly, the Contractor (IT Company) will not have any problem because whatever they pay will be put on your shoulder and if you want that their workers who work in your undertaking should be paid higher wages (as per Central Minimum Wages notification) they can pay so and charge it you. Similarly, if you say that the contractor should not bifurcate salary but should pay PF and ESI on the whole amount, they can follow you and charge the additional amount of PF and ESI from you. As far as the contractor who is registered under the State's Shops and Commercial Establishments Act is concerned, whatever is applicable to employees in shops and establishments is applicable to him also and there is nothing wrong in his act of paying the same salary to the workers he has engaged in a central PSU as is paid to the rest of his employees. If you are ready to pay more as service charges, he will also pay wages according to your rules.
19th September 2013 From India, Kannur