If Labour Officer (Inspector) conducts inspection of your work site he is issuing Inspection Report cum shown cause notice to the employer / contractor or Principal Employer under applicable labour laws in which he is clearly mentioning the breach of Section/ Rules under each enactment and also the statement of difference of wages if you have paid wages at a rate less than the minimum wages or OT wages under Minimum Wages Act. If you are not complying with the observations mentioned in the inspection, he may file prosecution before the Judicial Magistrate for the offences with regard to non maintanance of register, non display o f notices or non issue of wages slips. He may file claim case before the Authority appointed by the Appropriate government to decided the claim amount. Both the Judicial Magistrate and Authority under Minimum Wages Act will give you opportunity to submit your explanation and decide the matter on merit. When Judicial Magistrate decide the case either on your pleading guilty you have no option but to pay fine. If convicted, you may either pay fine or appeal to the appellate court. In claim case also if you are satisfied with the order of the Authority under Minimum wages Act, you have to pay the difference of wages with compensation imposed by the Authority either to the workers and produce the proof to him or to deposit the allowed amount in the account number as mentioned in the order of the Authority. Now in your case, if the Inspector has only issued inspection report, you have to submit reply to the authority mentioned in the inspection report cum show cause and copy of the reply to be sent to the inspector by enclosing the relevant documents to prove you have paid minimum wages to the concerned employees. If you have paid less wages to any employee than the rates fixed by the appropriate government then you have to pay the difference of wages and submit the proof alongwith your reply. By your submission, your case is related to the conditions of licence, as per Contract Labour (Regulation and Abolition) Central Rules, Rule 25(2) (v) (a) & (b) where the contract labours and labours employed directly by the Principal Employer are performing same and similar work, you need to pay the same wages to the contract labours as paid to the regular employees employed by the principal Employer. In this case if you wish to prove that the nature of work performed by the contract labours and principal employer is different and therefore the contract labours are not entitled to same wages as drawn by the principal employer, then, the Inspector will file case against the Principal employer and contractor under the relevant rule and the Authority appointed to hear such cases , may be Dy Chief Labour Commissioner in Central Govt and Dy Labour Commissioner in State Govt. In such a case the Inspector has to file many documents and to produce evidence/ witness to establish his case and contractor and Principal Employer have to prove that the work performed by the contract labours and workers employed directly by the principal employer is different. The Authority will issue orders based on the evidence produced before him. Aggrieved party can approach to the High court. Now you examine your case is at what stage and take appropriate action.