Guidance On Application Of Min Wage

In our organization, we follow the rate of minimum wages prescribed for Industries under Construction of Road & Building constructions (central rate). All the contractors who are into production and support service as per rate stated above (as per Govt. norms).

Problem arises mostly with companies working under ERP dept. and who deals with works like Data Centre support, Networking, Software Development, SAP system installation etc. Renowned companies are being engaged for such work that deploys their own manpower or third party manpower at our premises for execution of such job.

As my knowledge goes, any contractor deploys manpower in our factory; their workers/employees should be paid minimum wages as per the rates of Govt. notification (central) for Industries under Construction of Road & Building operations (which is applicable for our industry)

IT companies who are working in our organization and deployed manpower are paying salary/wages as per their own structure, some cases which is lower than what is the notified rate for our industry (which falls under Construction of Road & Building operations etc.)

As per their logic they do not fall under the schedule employments of minimum wages act and there is no specific notification on minimum wage for IT companies neither at central nor at state govt. (west Bengal) level. So they have their own salary structure and thus are not liable to pay the rate of minimum wages which our industry follows, for deploying manpower at our premises.

Guidance solicited.

Regards,

DG

If you are a scheduled employment as per Minimum Wages notification, all employees whether they are employed by you directly or engaged through a contractor should be paid wages as per rates prescribed for your industry. If employees of IT company is engaged to do any work, it should be the wages as per your industry that should be paid to them and the contractor cannot absolve from paying it on the ground that IT companies do not have separate minimum wages notification. I am not sure about West Bengal but some other states like Kerala there are separate notifications for IT companies.
If the contract is for service, like installation of SAP etc wherein you do not have any control or supervision over the individuals and the number of individuals who come for work, nothing above will apply because this is not a contract of service but is a contract for service.
Madhu.T.K

Hi Minimum wage is applicable for all Principle employer as well as contractor. It is Principle employer duty to see that contractor paid accordingly minimum wage.
Ajay Bisht
Manager HR(Hospital)
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