(1) Our establishment is a central govt PSU and located in a particular state . We are hiring vehicles form contractors on contract basis and paid on monthly basis as the terms of the Agreement .. Can we term the drivers against the vehicle as " contract labours " ?
(2) Since our establishment is in a particular state, whether we should follow the wage revision of central govt or state govt ?
kindly clarify

From India, Guwahati
Bharat Gera
Principal Hr Consultant
Srinath Sai Ram
Hr Manager
Hr Manager
+1 Other

1 As stated by you you are hiring Vehicles from Transport Contractors. you are Paying agreed Amount as per Travelled KMS The Transport Contractor becomes your Contractor, not his Employees.
2.The Drivers should be paid applicable State Minimum Wages

From India, New Delhi
Thanks Sir , but we are paying the contractors monthly on lump sum basis ( as per the agreement amount ) . The Provident Fund of the drivers are being deducted from the contractors bills @ 24.24 % and is being deposited to their respective PF ccount of EPF Trust . .
My question is since we are follwing the central PF rules for their PF , why we can not insist the contractor to pay the wages as per central Govt rules .

From India, Guwahati
(1) It is clarified that we are engaging the contractors to supply the vehicle minimum for a period of 3 years contimuously depending on their performance , after that either new tender is invited or extension is granted as per the decission of Management .
(2) Agsinst each vehicle minimum one driver is engaed by the contractor , drivers are the employees of the Contractors and the Admn control of the driver rest on the corporation .
(3) The Contract labour (Regulation and Abolition ) Act 1970 Cl 2 (b) may plase be reffered to . As per the provision " Workmen shall be deemed to be employed ..........when he is hired in or in connetion with such work by or through a contractor with or without the knowledge of the principal employer"

From India, Guwahati
1. As central government PSU you must be engaging other contractors also, what are you doing in their cases.
2. If you PSU is registered as employer under state contract labour Act and also the contractor, in that case state minimum wages will be applicable.
3. If you are paying contractor as per central MW, you must insist and the employees must get the benefit. Although you are paying om lump sum basis, you must have arrived at the figure after some calculations.

From India, Thane
Dear Member, Please Clarify your statement that PF Contribution @24.24% is being deposited to their respective PF Account lying in PF Trust. please give break up of 24.24%
Principal Employer is remitting PF Contribution to PF Office or Trust?
Contractor is remitting PF Contribution to PF Office or Trust?
Please Clarify "we are follwing the central PF rules?
you have admitted that you are paying Contractors on Lump sum basis.Please refer to the Tender/Quotation wherein the Contractor has given the breakup? Whether Contractor has included Minimum Wages of State/Central Govt

From India, New Delhi
Dear member,
Pl go through your agreement. If you are hiring vehicle for a predecided mileage on monthly or yearly basis, you are having liability as principal employer only. Regarding wages payment, if your company is having more than 50% shares held by Central Govt, than Central minimum wage otherwise state minimum wage.The contractor can change driver at his will and you have no role in it as per the contract since you are hiring only vehicle. Hope the issue is clarified.

From India, Pune
The breakup of hire charge bill is against drivers salary and the hire charge of the Vehicle . The bill is paid on monthly basis (not on KM basis)
The PF amount @24.24 is deducted from the contractors hire charge bill . Out of which 12% is from drivers salary and the rest 12.24 % from the contrcators account .
The PF amount is deducted from monthly bill and deposited by us in our PF Trust Account .
Our organisation is Central PSU (Govt of India) . As per agrrement drivers salary is to be paid by the owner of the vehicle . As per the agrrement owner of the vehicle should comply all the statutory obligination as per the central govt/State Gov rules .

From India, Guwahati
hi Dear Members kindly give your suggestion/views on the issue
From India, Guwahati

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