Dear Samvedan,
Minimum Wages do not deal with class of employment -( regular, permanent, temporary, casual, contract or badli). It states that in Industries and Locations under it's schedule, an employer cannot pay less than Minimum Wages.
I have personally worked in Factory where there was Contractor Union, the contract workers were paid as per Tripartite Agreement, which were much higher than the Minimum Wages.
If you look at it from a different angle, the Contract Workers are permanent workers of the Contractor.
Dear Kavita,
Employing contract employees (both Blue and White collar) in place of permanent labour usually in the following cases:
1. Job/ Work of Temporary Nature
2. Jobs of non core areas: Like Canteen, Sweepers, garderners, Loading, unloading
3. Jobs which require special expertise and it is not profitable investment both in terms of Financials and Manpower Development: Security, IT Support, Cash Delivery, Logistic Support, Maintenance, Transportation.
4. Jobs which require Unskilled Manpower and the scope of growth from these positions are leaset likely possible: Unskilled workers like Helpers, Office boy, Peons.
5. Manpower Restructering and Modifications: Transition Period, Closure.
Regards,
SC