Are Contract Employees in Mumbai Banks Entitled to Minimum Wages? Let's Discuss

Hi, can someone tell me whether minimum wages are applicable to contract employees/data entry operators, etc., posted at banks in Mumbai?

Thank you.

Very strictly speaking, contract workers are to be regarded as our own employees, and as such, they are also eligible for minimum wages. The applicability of any labor law to a particular situation is judged based on the presence of an 'employer-employee' relationship. Even though the work is done by an outsourced employee, we have the right to reject incorrectly done work, implying the existence of an employee-employer relationship between us and the contract worker. Similarly, the contract worker can claim benefits such as minimum wages, ESI, EPF, etc.

Madhu.T.K

Dear Madhu,

Many thanks. Anyway, we are paying much more. In what schedules of employment will they come in Maharashtra? Will they be under 'shop and commercial establishment, not being a banking company'?

Thank you.

If there is a separate schedule for Banking Companies, list them under it. Otherwise, the firm will come under 'Shops and other Commercial Establishments'.

Regards,
Madhu.T.K

Are private banks and PSU banks under the jurisdiction of the state or central government when it comes to paying minimum wages to contract staff?

PSU/Private Banks and those under Shop & Establishments, do they need to be registered with the State Labour Commission or Central Labour Commission?

Commercial Establishments and Banks

Though banks fall under the category of "commercial establishments" as per the State's Shops and Establishments Acts, Public Sector banks do not come under the purview of the S&E Acts because they are Central Government Undertakings subject to the control of the Reserve Bank of India. However, Private Sector Banks would fall under these acts.

Payment of Salary to Contract Employees

Regarding the payment of salary to contract employees, either on a Fixed Term Contract (FTC) or through outsourcing, if such employees are engaged in the same or similar work as regular employees of the bank, they should be paid the same rates applicable to regular employees based on the doctrine of "equal pay for equal work."