Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
We are private limited trading company registered in Delhi under Delhi Shop & Establishment Act. Can contract staff (employed through 3rd Contractor) working days (6 days a week) be more than the principal employer (5 days week).
Further is it compulsory to pay overtime to our junior staff (permanent employees) if they come on Saturday sometimes as our company works 5 days a week.
My understanding is that since their salary is more than Minimum Wages and other benefits are provided, therefore they are not entitled.
Please kindly advise us with relevant notifications.

Dear Sanjay,
The engagement of contract labor in an establishment is to carry out the incidental activities of the establishment only. If there is a necessity to carry out such works on an additional weekly holiday over and above the normal holiday/weekly closure day fixed under any establishment-specific law applicable, you can do so if it is thus provided for in the contract. At the same time, as Principal Employer, you should ensure that these contract labor get the minimum scale of weekly holiday fixed under the establishment-specific law applicable to his establishment.
Whether your company follows 5-day or 6-day ( normal minimum under any labor law)work pattern with 6.5 or 8 hours a day ( normal statutory maximum) work schedule, you have to pay over time wages for the excess hours worked beyond the fixed working hours. When your normal working hours per day are less than the statutory hours, you can't take shelter under that to deny over time wages for the work done by the employees beyond the normal hours of work as required by the employer.
I think your understanding is based on your misunderstanding of sec.14 of the Minimum Wages Act,1948 dealing with over time. This section speaks particularly about the payment of over time wages payable to those employees paid at minimum rates of wages only. What it excludes from this section is only the particular type of employees whose wage rates are higher than the minimum wages and therefore this exclusion should not be misunderstood as a blanket exclusion from payment of over time wages to such employees. Rather it implies that they should be paid over time at the rate ( whether it be higher or lower than the rate under sec.14 of the MW Act,1948 ) fixed under any other Law applicable to the establishment or as per the terms of the contract of employment in this regard.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™