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Rana U R
1

Dear all,
we are contruction company and have taken labour lincese under CLA-1970 and we are main contractor but our principal employer (registered under companies act 1956 and factrories act 1948 ) said that as our construction job has been completed and we have to follow factory act-1948 and we have to pay rate as per state govt so my question is
01.we have taken labour lincese under CLA1970 and we are paying rate as per central goverment but now we will have to pay rates as per instruction of mu principal employer, as per state govt, either it is legally correct or not ?
02. as we are contruction company which will be appropriate govt rate i.e. central govt or state govt for minimum wage to workmen ?

From India, Mumbai
korgaonkar k a
2556

Dear Rana U R,
I will give answer to your question No. 2 first.
You said, you are a construction company. This means you are a construction contracting company and you undertake construction projects.
In this case, when you undertake construction projects of PSU etc. you fall under central jurisdiction and you need to follow Minimum Wage Rates of Central or State if it is higher than Central.
If you undertake projects of private sector, to you respective State Laws are applicable and you need to follow respective State MW rates as applicable to construction industry.
Answer to your question No. 1 you must have got it from above.
Now your contact work of construction is under the factory as defined under FA 1948. In this case you have to follow the MW rates as applicable to that factory depending upon in which schedule industry it falls.
Those are the basics of HR compliance and it seems you need to hire the services of professional like me on retainership.

From India, Mumbai
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