Dear Seniors,
In my Organization (Principal Employer) an IT Company (contractor / vendor) has been given basic wages to his workers less than minimum wages, since last 6 months, but now when we enforced to the company to pay arrears (difference of basic wages) to all their workers for all 6 months. On our instructions vendor has ready to pay arrears but now he has restructured the Salary Sheet and made the wages equal to current minimum wages by shifting amount from allowances to Basic wages. So we have accepted the same but now vendor also recovering all the allowances from workers' wages, which was being paid to their employees since last 6 months.
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Below is the calculation :
Basic Wages was 3167/- PM (from Apr'14 to Sep'14) but it should be 8112/-PM, therefore, diff. is Rs. 4945/- (Apr'14 to Sep'14). and HRA, Travel Allowances or Other any allowances also being paid with Basic wages.
So now vendor is ready to pay arrears to workers by 4945/- x 6 Month = 29670/- (for Apr'14 to Sep'14) and from Oct'14 he has fixed basic 8112/- (as per minimum wages) by shifting allowances in basic. now all allowance are zero (0).
But vendor also deducting the amount of total allowances from Rs. 29670/- (arrears amount) which he had given to workers in last six month i.e. apr'14 to sep'14.
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So, my query is that is vendor have rights or is it correct to shift allowances (HRA, Travel Allowances or Other any allowances) in Basic wages for the purpose of minimum wages, in place of made a separate increment in Basic Salary.
and is vendor can recover the allowances which the company has already pay to the workers in previous months.
Pl advice and give your valuable suggestion.
In my Organization (Principal Employer) an IT Company (contractor / vendor) has been given basic wages to his workers less than minimum wages, since last 6 months, but now when we enforced to the company to pay arrears (difference of basic wages) to all their workers for all 6 months. On our instructions vendor has ready to pay arrears but now he has restructured the Salary Sheet and made the wages equal to current minimum wages by shifting amount from allowances to Basic wages. So we have accepted the same but now vendor also recovering all the allowances from workers' wages, which was being paid to their employees since last 6 months.
================================================== =================================
Below is the calculation :
Basic Wages was 3167/- PM (from Apr'14 to Sep'14) but it should be 8112/-PM, therefore, diff. is Rs. 4945/- (Apr'14 to Sep'14). and HRA, Travel Allowances or Other any allowances also being paid with Basic wages.
So now vendor is ready to pay arrears to workers by 4945/- x 6 Month = 29670/- (for Apr'14 to Sep'14) and from Oct'14 he has fixed basic 8112/- (as per minimum wages) by shifting allowances in basic. now all allowance are zero (0).
But vendor also deducting the amount of total allowances from Rs. 29670/- (arrears amount) which he had given to workers in last six month i.e. apr'14 to sep'14.
================================================== ==================================
So, my query is that is vendor have rights or is it correct to shift allowances (HRA, Travel Allowances or Other any allowances) in Basic wages for the purpose of minimum wages, in place of made a separate increment in Basic Salary.
and is vendor can recover the allowances which the company has already pay to the workers in previous months.
Pl advice and give your valuable suggestion.