Minimum Wages Act Compliance: Is It the Principal Employer or Contractor's Duty?

P R Narayanan

Hi,

Whose responsibility is it to comply with the minimum wages act if a company (Principal employer) engages another company as a contractor - the principal employer or the contractor?

Pradeep.kumar

It is the responsibility of the contractor to comply with the Minimum Wages Act.

KK!HR

Dear Shri Narayanan,

The primary responsibility is of the contractor who has deployed the contract labor, but if he fails to pay, the onus shifts to the Principal Employer, provided the contract labor is working in your establishment.

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