Dear Nayak, I believe that the complimentary comment on your post indicates the impropriety of deducting wages for the weekly holiday of outsourced employees. In the case of outsourced employees, if the deduction is based on the wrong premise of the presumption of "No work - No wages," it necessitates a detailed discussion. "Wage," being the pecuniary or other form of consideration for the labor performed, the frequency of its payment is referred to as the "wage period," which can be daily, weekly, bi-monthly, or at most monthly depending on the duration and nature of the work carried out. Thus, it simply becomes a payment method.
Typically, when labor is employed for occasional or casual work whose output can be immediately quantified, the arrangement takes on the characteristics of a "contract for service," and payment is made upon completion of the work or on a daily basis as agreed. Conversely, if the work, whether core or incidental, demonstrates regularity and close supervision by the employer who assigns it to another agency or contractor for execution by their staff, then such labor is considered outsourced or indirect labor, bound by a "contract of service" with their immediate employer.
A "contract of service," establishing a substantial employer-employee relationship, holds broader implications than a "contract for service," which is purely temporary and ad-hoc. The establishment of an employer-employee relationship ensures that the employee is always available to the employer, guaranteeing payment for periods of no work, such as off-days and holidays. When labor is outsourced, the entire labor cost is encompassed in the contractor's fees. This is why governments advise employers to multiply the daily minimum wage rate by 30 and divide the monthly rate by 26 to determine the precise minimum monthly or daily wage amounts. In essence, minimum wages already cover holiday wages. Therefore, deducting wages for the weekly holiday for outsourced employees is undoubtedly illegal.
Regards