Our factory comes under the purview of the schedule of Employment to Minimum Wage Act. However, we do have workmen outsourced from Licensed Contractor who provides manpower service to different organizations- one of which is ours. The contractor runs an exclusive office for this purpose.
My queries here are:
1. whether the Contractor who runs an exclusive firm for manpower service to different organizations comes under Shops and Establishment Act.
2. Whether the contractor is to pay wages to his workforce under the schedule employment category of Shops and Commercial Establishment or the contractor to pay his workmen according to wages applicable to respective schedule of employment to M.W.Act?
3. Whether an apprentice would be covered under Standing Orders of principal employer firm is to be paid stipend or wages as required of the Minimum Wages Act?
Request expert views with suitable court decisions / citations.
2nd February 2019 From India, Mumbai
The contractor should pay minimum wages applicable to the establishment where his employees are deployed. However, if the contractor is covered by another scheduled employment for which separate minimum wages has been notified, then he is bound to pay that minimum wages which is more favourable to the employees.
The trainees other than apprentices engaged following Apprentice Act are to be paid salary as per Minimum Wages Act with all PF, ESI benefits
2nd February 2019 From India, Kannur
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