Navigating Labor Laws: Are Executives Considered Workers and How Do Salary Registers Apply?

Salary vs. Wage:

How can we differentiate between salary and wage? In labor law, there is a provision that we need to maintain a salary register. Is it also for an MNC company such as a Telecom Company or only for a factory and establishment where workers work? And... Is it only for the tea-boys, drivers, or is it also for all executives who work for the company?

Executive vs. Worker:

How can you define "An Executive is not a worker"? As our labor inspector says, executives should be considered part of the worker group as they do not make any decisions and do not have recruitment power.

For your information, I am Nobiul Ahasan, working in HR at a Telecom company. Please help me. These labor inspectors are considering everything based on the laws of 1957 and 1969. I can't understand why they fail to grasp the new trends of the corporate world.

Dear,

The definition of workman is different under the Industrial Disputes Act and the Payment of Wages Act. Under the Payment of Wages Act, a workman shall be a person who is drawing up to Rs. 6,500 per month; whereas under the ID Act, salary/wages are not the criteria, but rather the supervisory nature of duties. Even if someone is a General Manager drawing Rs. 50,000 per month but not performing supervisory duties, they shall be considered a workman under the ID Act. However, under the Payment of Wages Act, only those drawing up to Rs. 6,500 are covered.

Supervisory duties do not simply entail signing appointment letters; it means having control over juniors, such as approving leave, taking disciplinary action, authorizing advances, and monitoring shifts/production.

Ak Malhotra
Senior General Manager
Dharampal Satyapal Limited