Minimum Wage Dilemma: How to Handle Pay for a Lone Employee in a Different State?

Good Afternoon, which state's minimum wages are applicable if there is only one employee in another state with no office in that state, and the head office is in Maharashtra?

The place of work of the employee determines the jurisdiction for all statutory claims and employment benefits, regardless of the number of employees in a specific location outside your head office.

If a single employee is required to stay and work at a location outside the state according to the terms of their employment contract, they should be paid at the minimum wage rates of that state if it is higher than the rates specified in the contract.

Statutory and Regulatory Obligations

The company is under the obligation of fulfilling all statutory and regulatory activities. It is important to know that after a certain threshold of the number of persons, the statutory obligations become mandatory. Therefore, the minimum wages applied to a single employee working in another state must be considered for the minimum wages, which are higher.

ESIC Facilities at Work Location

However, to avail facilities like ESIC at the work location, the company has to opt for taking a sub-code of that state.