Labour Law & Hr Consultant
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Can somebody let me know if factory workers can be taken on daily wages?
3rd April 2018 From India, Mumbai
Dear Parinaaz,
To me your question seems to lack in clarity as you've omitted the context. In the first place "daily wage" refers to the method of computation of wages/monetary consideration payable to a workman for the work done by him by the person who engages his services. When the Payer becomes an establishment like a factory marked by repeated significant activities in an organized fashion, the engagement of labor, irrespective of the method of computation and the periodicity of payment of wages due to them, becomes that of employment. The concept of employment comprises of three main ingredients viz, the employer, the employee and the contract of employment thus creating a substantial relationship between them. Therefore, the engagement of all/ substantial number of workers on daily wages in a factory on perennial nature of activities would normally be construed as a preemptive attempt or unfair labor practice on the part of the employer to snap the employer-employee relationship only for obvious reasons. However, certain exceptions are there with reference to the nature and duration of activities, the periodicity of engagement of workers on them and the like. If the activity is only incidental as well as intermittent or purely adhoc/casual, then workers can be engaged on daily wages.
3rd April 2018 From India, Salem
Dear colleague,
I beg to differ with Mr Umakanthan sir.
There is no bar to engage factory workers on daily-rated basis. It is quite fair as well as prevalent practice.Some of the scheduled employments under M. W.Act have daily- rate. In fact many daily rated workers are taken on company's payroll and are also employed in core processes.There are wage settlements signed for them whereever they are unionized.
The daily-rated rated workers are paid wages based on no. of days worked and are not paid for weekly off days.
Just as there are piece rated workers so there are daily rated workers which is a mode of payment. To regard it as a practice employed to deprive such workers of any benefits enjoyed by the other permanent workers and to look down upon it as unfair labour practice would not be , in my view, proper.
Vinayak Nagarkar.
4th April 2018 From India, Mumbai
Yes, they can be paid as per minimum wages per skill. Why do you ask for workers rather make for one and all those are engaged in your factory, even managers.
If does so the cost of production will drastically fall and the product would be much cheaper in comparision to other competitors.
The idea to " bell the cat" was not wrong. Similiarly if this can be done would be a revoltunary step.
4th April 2018 From India, Mumbai
No stand-off between our views, Mr.Nagarkar, as our vantage points of answer to the same query are totally different, I think. Paid employment came to be recognized as an essential and inevitable aspect of communal living because of the naturally inequitable distribution of the factors of production viz., land,labor and capital. When the fourth factor viz., " management " slowly gained dominance in the wake of industrial revolution and globalisation, the adhoc relationship of master and servant metamorphosed into that of a fiduciary relationship of employer and employee. However, the nature of certain incidental activities in any organized establishment like a factory or elsewhere in the society still permits the system of daily-wage engagement. Ironically, this kind of multitudinal labor is less organized and very much susceptible to exploitations of every kind. That's why the State has to embark on restrictive legislations like the Minimum Wages Act,1948. Of course, we have to admit the fact that more the number of employments brought into the schedule of the Minimum Wages Act,1948, the less the existing labor become organized. The question raised in the thread is indicative of the above sordid fact and hence my above answer.
4th April 2018 From India, Salem
With all the humility at my command and due respect to Mr Umakanthan,
I wonder if for a simple query like can a worker be engaged on daily wage basis in a factory , such an erudite and pedantic elaboration is called for although it is studied reply and useful in some other context.
But despite my above view I respect the freedom of the persons in deciding how to reply.
I honestly hold the view that one should confine to the essence of the query in replying to it but at the same time I do not insist on it.
Vinayak Nagarkar
4th April 2018 From India, Mumbai
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