We have signed a contract with a Central Govt organisation to undertake certain repair jobs. Our company and the Central Government organisations are in the same locality. On all working days we will be deputing our employees to do the job for a period of 3 months. Request clarify whether our employees to be paid with Minimum Wage of the State or of the Central Government.
From India, Mumbai

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Dear friend,
I think the Central Govt Organization would have registered itself as Principal Employer under the CLRA Act, 1970 with the Registering Authority appointed by the Central Govt.
Therefore, the contract labor should be paid their wages at the rates of minimum wages fixed by the Central Govt only.

From India, Salem
Hi sir,
Possibly, there could be confrontation as to which should be followed. There could be differences between central & state rates, if so, concerned employee tend to insist for whichever is higher rates despite the fact that the unit has a regn under one domain.

From India, Bangalore
I do agree with you Mr.Kumar but what I have indicated is the legal position only. Besides, in the particular contract, the Central Government undertaking would have approved the contract based on the Central minimum wage rates only. Yet I very faintly remember that certain Central Govt Undertaking probably BSNL(?) have standing instructions to adopt whichever higher rate in such disparity between Central and State minimum wages for the same employment.
From India, Salem
how we will determine that the private organisation will coming under state labour act or central labour act
From India, Bhubaneswar

The term Äppr0priate Government is defined in the Minimum Wages Act 1948 and it reads as follows:
Section 2 (b) “appropriate Government” means -
(i) in relation to any scheduled employment carried on by or under the authority of the Central Government or a railway administration or in relation to a mine, oil field or major port, or any corporation established by a Central Act, the Central Government; and
(ii) in relation to any other scheduled employment the State Government;
So as regards any private organisation the Central Govt. notification would apply only in cases of mine, oil field or major port . In all others it will be the State Govt. notified rates that will be applicable.

From India, Mumbai

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