Navigating Minimum Wage Rules: Should Contractors Follow Factory or Shops Act Rates?

Hello Everyone,

Greetings!

If a company is registered under the Factory Act of 1948 and wants to engage a housekeeping contractor registered under the Shops & Establishments Act, should the contractor follow the factory's minimum wages as per the principle employer rates or adhere to the rates specified under the Shops & Establishments Act?

Please share your comments on this!

Regards,
Hemant Jog
Unit HR Head - Plant 4 - Navi Mumbai

Every employee or contract employee working in a factory has to follow the principle of employee minimum wages. If the state and federal minimum wage is higher than the factory minimum wage, then the employee should be provided with the higher amount.

Dear Sir,

If the Housekeeping firm is registered under the Shop & Establishment Act and has taken a contract in a factory, the Minimum Wage (MW) of the factory will prevail if the janitors are regularly employed there. If the employees are on rotation or may be changed, the MW of the Shop & Establishment will prevail.

In conclusion, the Minimum Wage of the Factory should prevail. This is my opinion. We should consider this from the perspective of HR as well as from the viewpoint of the factory manager.

Regards

Hi all,

Payment of minimum wages depends on the nature of the industry in which contract labor is engaged, even if the contractor could have registered under the S & Estt Act. Normally, the office of the contractor will be registered under the S & Estt Act, not the place where he may engage his labor.

Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com