Are Daily Wage Security Guards Entitled to Leave if They Work Monthly? Seeking Clarity on S&E Rules

Dear Learned People,

I am providing security services to an organization where we have deployed 20 guards. We are paying these guards leave as per the S&E. We are submitting a monthly invoice to the client against the services rendered. When the revision in the MW was notified by the government, we approached the organization for a revision in the unit rates. Now, the HR of the organization is saying that as we are treating these security guards as daily wage earners, we will not pay the leave as per S&E.

Please help us understand whether our daily wage earners are not eligible for leave under S&E if the same person is working at the site on a monthly basis.

What is the basis of the minimum wages fixed by the State Government - daily rate or monthly rate?

Dear Rajan,

The contention of the HR is completely wrong in view of the provisions of the CLRA Act, 1970, read with the provisions of the State S&E Act. The CLRA Act, 1970 does not have provisions pertaining to working conditions like working hours, weekly holidays, etc. They would be automatically covered by the relevant provisions of the establishment-specific law applicable to the PE's establishment where the contract labor is required to work. So far as the working conditions are concerned, it is immaterial whether the PE is registered or the contractor is licensed under the CLRA.

So far as any S&E is concerned, the 7th day following 6 days of work shall be a paid holiday. Even the minimum wages fixed under the MW Act, 1948 cover the weekly holiday wages. Therefore, if a person employed, whether he be a regular employee or a contract laborer, is required to work on a holiday, he should be paid wages for that day at an overtime rate, and in addition, a substituted holiday shall be allowed to such an employee. It is better to request the HR to go through the entire provisions of Rule 23 of the Minimum Wages (Central) Rules, 1950.

Certainly, the mode and the periodicity of payment of wages or switching such an employee's services among different types of the same PE's establishment cannot have any impact on the grant of a weekly holiday or weekly day of rest to an employee who has worked for 6 consecutive days in a week. Write back politely to the HR highlighting the provisions of the above Rule 23 and request his immediate compliance from now onwards.

The guards deployed by you in the establishment of the employer are eligible for leave in both cases. The HR people are incorrect in what they are saying; it is their own concept but not the rule. Daily wage earners are eligible for leave at the rate of 1 day per 20 working days.