Labor Inspector Notice at Bank ATM: Are We Really Responsible for Compliance?

Notice from Labor Inspector: Compliance Concerns

Currently, I am working in a Cash Management service company as AM_HR. Our company is involved in managing ATMs (cash loading in Bank ATMs). Recently, a central labor inspector visited an SBI ATM and served us a notice regarding the display of the abstract of minimum wages and the maintenance of various registers. The question that arises now is that we are under a service agreement with the Bank and do not provide any labor or manpower services to them. Our manpower is on our company payroll, and the premises do not belong to us.

• Can the labor officer serve us a notice under the Minimum Wages Act or for maintaining registers at the ATM?
• They have not served a notice to SBI as the ATM belongs to SBI.
• Can the labor officer escalate the matter to court despite our response that the premises do not belong to us, and we are not obligated to display anything?

What should be our next course of action? Please suggest.

Clarification on Labor Officer's Notice

The Labour Officer can direct you to follow the Acts in your office premises only. The department cannot direct you to display notices in the ATMs which are owned by somebody else. Therefore, you may reply saying that all registers required under the Minimum Wages Act are available in your office, and the abstract of the Act is also displayed there. You are not expected to display it in the ATMs that are not owned and controlled by you.

Additionally, you should ensure that your type of operation has been included in the schedule of employment under the Minimum Wages Act. Although the Act is a central Act, it will be the state government that notifies which operations (industries) fall under it.

Regards,
Madhu.T.K

Dear Madhu,

Thank you very much for your reply. We have also received a notice from the labor department to appear in court regarding this matter. However, as it does not concern our premises, we are unsure of our stance in court. One of our advocates has advised pleading guilty and paying the penalty, or seeking bail for our director and then contesting the case.

Please advise further on the best course of action.

Kind regards

I cannot understand how the labor department will issue a notice to you directing you to appear before a court! If the matter is before the court, then the court will summon you to appear or submit your reply. In this case, no personal hearing has taken place; only the labor inspector has issued a notice to which you might have replied, and no further proceedings have taken place.

Please ensure the genuineness of the notice and proceed.

Regards,
Madhu.T.K