Is It Fair to Reclassify Security Guards for Lower Wages? Seeking Advice on Ethical Pay Practices

Hi all, I need a suggestion from all of you regarding one matter which is as below. I am working in a mine where we have given a contract to an agency to supply security guards to different posts at the mine. As security guards fall under semi-skilled categories, we pay the agency as per the minimum wage applicable to that category in the central sphere. Now, our management wants to pay them under the watch & ward category, under which the minimum wage is less compared to the semi-skilled categories for cost-effectiveness. Is it possible to put the security guards under watch & ward and pay them accordingly?

Regards,
Mantu71

It will not be possible for me to offer a view without seeing:
(i) The Government notification on minimum wages referred to in your post.
(ii) The contract entered into between your company and the agency.
Regards,

First of all, you cannot pay a reduced salary to contract employees who are working with you. Therefore, you have to terminate the existing contract and also need to change the contract workers. For your convenience, you cannot change the contract and use the same workers for a lesser salary.

My suggestion is, for a mere Rs. 500/- per month, do not try to engage in non-compliance matters as it can cost the organization a lot. Instead, conduct a work study and if possible, reduce one or two guards so that it suits your manpower cost.

Thanks and regards,
Kameswarao