Dear Radhey Shyam
I had a re-look at this issue. It is a vexatious question. If you peruse Minimum Wages Act, Sec.3 of the Act is the relevant provision governing the issue. Sec.3 says that the apropriate government can fix minimum wages in respect of employments specified in the Schedule to the Act. It spells out two key factors to determine the issue as to payment of minimum wages namely 1) the appropariate government and 2) employment in which the contract labour are employed. Now the issue gains complexity when a contractor is registered under the State's Shops and Establishments Act and supplies contract labour to a central undertaking because the appropraite governments for the contarctor and for the principal employer are different.Thus two views are heard on this issue. One view maintains that since the contractor is registered under Shops and Establishments Act and the contract labour are the employees of the contarctor, the minimum wages notified by the State Government shall be paid. Another view is that even though the contract labour are the employees of the contractor, since the contractor has got labour license for employment in the central undertaking and the contarct labour are working in the employment of the principal employer(centarl undertaking), the minimum wages shall be paid as per the Central Goverment notification. Another twist to the issue may crop up whne the contractor undertakes the job of the principal employer at his (contarctor's) premises. Then in whose employment, the contract labour are deemed to be employed - contarctor's or principal employer's. Each view seems to have it's own valid grounds.I have not come across any case law specifically covering the situation like this.The prudent view seems to be that when both state government and centarl government notify minimumwages in respect of the same employment, it is better to pay the higher of the two. This is only a view on the issue. Others may have their own views
B.Saikumar
Mumbai