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Respected sirs, this is a case of a CPSU , where Registration of Principal Employer under CLR&A Act, 1970 has been obtained From ALC (Central).

Two Types of Contracts generally been awarded 1. Service Contract (Repair and Maintenance Work) 2. Works Contract (All major Contract)

For Service contract they are paying minimum wages @ specified by CLC (Central) and for Works contract estimates are prepared through Project Scheduled Rate which is derived from minimum wages @ specified by Labour department of State Govt.

Now, there is always labour unrest for different wage rates in the same establishment.

Kindly examine in legal context.

Being a Central Govt. Sector undertaking who is the appropriate government as per Minimum Wages Act 1948 and what will be the solution as described above.

From India, Faridabad

What is the difference between Service contract and Works Contract?

When the repairs and maintenance of machines and equipments other than that covered under an Annual Maintenance Contract or AMC which is outside the purview of CLRA Act, is carried out by a section of employees deployed for the purpose, the rate of wages as applicable to that kind of work/ job will be payable.

Other than the above what is works contract? Is it that workers are deployed to perform the work/ core activities of the establishment, say, production? If so, first of all let me say that such engagement is illegal and will attract complications in future.

You can have different wage rates for different kinds of employment within the same organisation provided the skills required are also different. That cannot be questioned. The Minimum Wages Act also provides for different wages for different categories of employment under the same scheduled employment.

From India, Kannur

Dear Colleague,

The definition of Appropriate Government is a good term to be analyzed. As far as any scheduled establishment carried on by or under the authority of the Central Government, the appropriate Govt is Central only. In your case of CPSU, the Minimum Wages as stipulated by the Central Government will be appropriate for both types of contracts. More so, hope the licenses for contractors and RC to Principal Employer would have been from Central Labour Authorities only. Hence from Minimum Wages angle, Contract Labour Act angle, Industrial Dispute Act angle, it is right to follow the Central Government Fixed Minimum Wages for the respective scheduled Employment. Within that notification, you may follow different wages for different skill categories depending on the classification given in the notifications based on skill levels as stipulated in the Notifications.

For your reading:

A) The definition of Appropriate Government under the Minimum Wages Act 1948 is as under:

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, oilfield 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;

B) The definition of Appropriate Govt under the Contract Labour Act is as under:

2. Definitions.-(1) In this Act, unless the context otherwise requires,-(a) 'appropriate Government' means,-(i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government; (ii) in relation to any other establishment, the Government of the State in which that other establishment is situated.

C) The definition of Appropriate Govt under Industrial Disputes Act 1947 is as under:

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,--

(a) "appropriate Government" means-- (i) in relation to any industrial dispute concerning any industry carried on by or under the authority of the Central Government, ................ or the Oil and Natural Gas Commission established under section 3 of the Oil and Natural Gas Commission Act, 1959 (43 of 1959),...................................., the Central Government, and (ii) in relation to any other industrial dispute, the State Government;

From India, Chennai
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