Ours is an Engineering Industry situated in Maharashtra state and covered under the Factories Act. We have engaged security guards on an annual contract basis, i.e., for a fixed period. These guards are not engaged through a contractor within the framework of the Contract Labour (R & A) Act.

Recently, the Government Labour Officer visited the factory and noted that we should pay the security guards the minimum wages of scheduled employment for Factories under the Factories Act (Residuary). However, our industry falls under the scheduled employment category for the Engineering Industry. Therefore, I believe we should pay the security guards the minimum wages applicable to the Engineering Industry and not those under the Factories Act (Residuary).

Advice, please.

From India, Mysore
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Since security is employed directly by you on contract and not through a contractor, you are liable to provide all benefits as provided to other employees, such as bonus, PF, ESI, and salary at the minimum wage applicable in your state.

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