Umakanthan53
Labour Law & Hr Consultant
Bcarya
Assistant Manager - Hr
+1 Other

Dear ALL,
we are telecom industry registered under Central CLRA Act, we have few contractors like security,pantry workers etc..
one of our contractors giving state minimum wages to deputed employees, here i have a doubt whether they have to follow state minimum wages or central minimum wages?
most of them recommending contractor should give central minimum wages. but contractor point of view they have PAN india services and providing services to all even the principal employer registered under STATE CLRA act.
Also contractor telling that same kind of work done for all principal employer so we cant give central minimum wages...
can you suggest me how to resolve this i need strong clarity regarding this.
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Dear CHIDHAMBARARAJ, Since, Central Govt is the Appropriate Govt for the Telecom Industry, I think the Central rates should be implemented.
sir,
but some practical problem is there from contractor side, they are registered under the S&E Act also they providing services to telecom and other industries also. all the employees comes under their payroll same salary structure. here they cant provide the different salary for the same work done by their employees right? Example people outsourced here they getting 6500 same kind of work people who deployed in industries getting 5000 its somewhat complicated!
how we can resolve this?
Dear CHIDHAMBARARAJAN,
Pl ignore the facts that the Contractor's estt is registered under the State Shops & Estt Act and it's got administrative difficulty in view of its uniform wage structure and it being a Pan-India concern.What is of paramount importance is who the Appropriate Govt is in relation to the Principal Employer.Since the PE is a telecom service provider and a Central Govt undertaking as well ( I presume), the App.Govt is the Central Govt. As such, the contractor's difficulty pales into insignificance.Moreover, it is not legally correct to refuse to implement the Central rates of wages just because they are higher.It is a special case and special cases hve to be dealt with differently I hope!
Dear Chithambararaj Ji,
In my views, the state minimum wages should be implemented in this situation, regardless of the registration matter.
All the states declare the Minimum Wages as per the CPI of their state and it become applicable all over the state.
As the deployed work leave in that local area and his expenditures are as per the CPI of that particular state!!
There may be different view on this. But, in my views all the employees should be paid as per the State Minimum Wages where they are deployed.
Since, the Amendment in definition of Wages is not carried out under Minimum Wages Act by the Central Government it is imperative that all contractors has to pay the Wages declared by the State Government under Schedule Employment.irrespective of Appropriate Government is Central Government.
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