Minimum Wage vs. Long-Term Contracts: Are Lower Wages in Agreements Legal?

If a state has declared a minimum wage that is higher, and any company contractors are entering into LTS agreements with lower wages than the minimum wage for five years, the question arises: Is any agreement (LTS) with wages lower than the prescribed minimum wage considered valid?

Understanding Section 25 of the Minimum Wages Act, 1948

Please refer to Section 25 of the Minimum Wages Act, 1948:

"25. Contracting out. - Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void in so far as it purports to reduce the minimum rate of wages fixed under this Act."

I do hope it is self-explanatory.

Regards