Sourabh94
Can the principal employer change the salary (increase or decrease) for the Outsourced employee? What can be the implications on this if principle employers do the same?
From India, Bengaluru
nanu1953
334

It is better that the PE should not have direct control on outsourced employee. It will be better if the PE discussed with outsourced agent and implement it through them. This will maintain proper employer employee relationship.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in

From India, New Delhi
saswatabanerjee
2391

Sourabh,
can you clarify on the above matter?
What exactly has the PE done (or plans to do)?

Generally contractors will pay the salary agreed with the PE, So if PE wants higher pay to be given, he will increase the amount he pays to the contractor. Or do you mean PE is directly telling contract workers that the salary is to be increase?

As for decreasing salary that is rarely done and difficult. Besides, the employees will mostly leave or raise Industrial Dispute, both of which are a problem

From India, Mumbai
PRABHAT RANJAN MOHANTY
586

The principal employer can not change the salary i.e, increase or decrease for the employees outsourced through others.
At the same time,the principal employer can do the salary i.e, increase for outsourced directly, and can decrease the salary, where the employees not meeting the requisite skills or expertise for which one has been hired.
There are cases, where outsourced employees are being paid less than the amount being paid to the contractor by the principal employer.

From India, Mumbai
loginmiraclelogistics
1067

The PE has the right to insist for ensuring minimum wages are paid as scheduled (or as per contract terms whichever higher) from time to time. Though practically they may not interfere beyond this, there are instances I noted where limited no.of contract employees are involved some times they might insist for enhancement in salary to some contract employees directly working under them. On the other hand where huge no.are involved it is not practical to single out a few CE.
From India, Bangalore
kamlesh111
10

The Principal Employer can re-negotiate the contract terms with the service-providing agency, ensuring there is no statutory violation by the service-providing agency in terms of wage payment and other associated obligations.

Regards,

From India, Delhi
loginmiraclelogistics
1067

I may add, while there is no possibility of PE's insistence for decreasing the existing emoluments even in case of average performers, there is no reason why they should ask you to give effect to an increase unless the present wage is lower than the Minimum wages applicable ? I don't think the PE ask you enmassed increase in wages but there is possibility, for hand picked outstanding performers they suggest you to consider increases. This again may not be at corporate levels but at floor managers levels only.
From India, Bangalore
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