In the case of heavy-duty drivers outsourced to a logistics company, the question arises as to whether the salaries and wages should be payable under the scope of the minimum wages applicable under the classification of the Motor Vehicles sector or if they should be paid under the Shops and Establishments Act. This consideration is important given that the logistics back office is registered under the Shops and Establishments Act.
From India, Ernakulam
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From India, Ernakulam
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Dear Ramesh Venkatraman, you may check the provisions of the various acts in your state. These are:
a) THE MOTOR TRANSPORT WORKERS ACT - 1961
b) For the "FAQ under the Motor Transport Workers Act" of the above act, you may click here.
c) Minimum Wages Notification
Check the wages in either act and pay whichever is maximum.
Thanks,
Dinesh Divekar
From India, Bangalore
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8072a) THE MOTOR TRANSPORT WORKERS ACT - 1961
b) For the "FAQ under the Motor Transport Workers Act" of the above act, you may click here.
c) Minimum Wages Notification
Check the wages in either act and pay whichever is maximum.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Ramesh,
From your narrative, it appears that you depute the services of your heavy-duty drivers to the Logistics Co. on a contract basis.
Contractual Employment Relations
If this is correct, you are the contractor of manpower supply, the Logistics Co. is the principal employer, and the drivers deputed are contract labor under the provisions of the CLRA Act, 1970. This is the nature of employment relations among all three parties emerging from the contract for service between the Logistics Co. and yours.
Applicable Labor Laws
By virtue of its business operations, the parent labor law applicable to the Logistics Co. is the Motor Transport Workers Act, 1961. Though your back office is an establishment under the Shops and Establishments Act, when these drivers are deputed to the MTW Establishment as contract labor, as long as they work there, they are MT workers only, and their service conditions would be covered by the provisions of the MTWA, 1961, and all other allied labor laws applicable to that MTW establishment, including the Minimum Wages Act, 1948.
Therefore, as long as these drivers work in the Logistics Co. as contract labor, they should be paid at the rate of minimum wages applicable to the Motor Transport workers.
From India, Salem
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From your narrative, it appears that you depute the services of your heavy-duty drivers to the Logistics Co. on a contract basis.
Contractual Employment Relations
If this is correct, you are the contractor of manpower supply, the Logistics Co. is the principal employer, and the drivers deputed are contract labor under the provisions of the CLRA Act, 1970. This is the nature of employment relations among all three parties emerging from the contract for service between the Logistics Co. and yours.
Applicable Labor Laws
By virtue of its business operations, the parent labor law applicable to the Logistics Co. is the Motor Transport Workers Act, 1961. Though your back office is an establishment under the Shops and Establishments Act, when these drivers are deputed to the MTW Establishment as contract labor, as long as they work there, they are MT workers only, and their service conditions would be covered by the provisions of the MTWA, 1961, and all other allied labor laws applicable to that MTW establishment, including the Minimum Wages Act, 1948.
Therefore, as long as these drivers work in the Logistics Co. as contract labor, they should be paid at the rate of minimum wages applicable to the Motor Transport workers.
From India, Salem
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Delhi Minimum Wages w.e.f. 01.10.2015.pdf