If we hire say guards for our company from any guard providing company and sign a contract on X rate. Would we be liable for the payment to guards by their parent company as per min wages act?
From India, Pune
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From India, Pune
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Understanding Your Role as a Principal Employer
When you hire manpower from an outside agency, your position will be that of the Principal Employer. As such, you have to ensure that contract labor engaged by the contractor at your site are paid minimum wages. If minimum wages are not paid by the contractor, being the Principal Employer, you will have to pay the difference and make it equal to the minimum wages. Certainly, you can collect the amount paid by you from the contractor.
Regards,
Madhu.T.K
From India, Kannur
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4529When you hire manpower from an outside agency, your position will be that of the Principal Employer. As such, you have to ensure that contract labor engaged by the contractor at your site are paid minimum wages. If minimum wages are not paid by the contractor, being the Principal Employer, you will have to pay the difference and make it equal to the minimum wages. Certainly, you can collect the amount paid by you from the contractor.
Regards,
Madhu.T.K
From India, Kannur
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Thanks a lot Madhu, Your feedback is really helpful. But I need to show this information to our management. Can I find this information in any Govt policy, say min wages policy or so?
From India, Pune
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From India, Pune
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Please refer to the Minimum Wages Act, wherein an employer is defined as a person who employs workers either directly or through another person, which includes contract labor. Additionally, please refer to the Contract Labour (Regulation and Abolition) Act, in which the principal employer's liability is clearly stated [section 21(4)].
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Clarification on Employer Responsibility Under the Minimum Wages Act
As clarified by Mr. Madhu T K, the employer/principal employer is bound to pay minimum rates of wages as notified by the appropriate government as per Section 12 of the Minimum Wages Act, 1948. The employer is defined in Section 2(e) of this Act, which shows that the principal employer is also the employer for contract workmen and thus responsible for ensuring the payment of minimum rates of wages to the contract employees.
Please also review your applicable minimum rates of wages as per the appropriate government notification, as this may also contain specific instructions for employers to ensure minimum rates of wages for contract workmen. In our case, in the state of Haryana, the minimum wages notification clearly states that where any categories of workmen are engaged or employed through a contractor, the occupier/employer will be personally responsible for ensuring the payment of minimum rates of wages by the contractor.
Regards,
R.N. KHOLA
From India, Delhi
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As clarified by Mr. Madhu T K, the employer/principal employer is bound to pay minimum rates of wages as notified by the appropriate government as per Section 12 of the Minimum Wages Act, 1948. The employer is defined in Section 2(e) of this Act, which shows that the principal employer is also the employer for contract workmen and thus responsible for ensuring the payment of minimum rates of wages to the contract employees.
Please also review your applicable minimum rates of wages as per the appropriate government notification, as this may also contain specific instructions for employers to ensure minimum rates of wages for contract workmen. In our case, in the state of Haryana, the minimum wages notification clearly states that where any categories of workmen are engaged or employed through a contractor, the occupier/employer will be personally responsible for ensuring the payment of minimum rates of wages by the contractor.
Regards,
R.N. KHOLA
From India, Delhi
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Delhi Minimum Wages w.e.f. 01.10.2015.pdf