Minimum wages act
Azim A. Charania
(Querist) 23 March 2017
This query is : Resolved
Respected Forum Members
With due respect to you and to your Chair, Need your valuable Views on the above captioned subject matter on my queries listed after brief history of our Factory / Establishment.
We are Private Limited Company having Registered Office at Mumbai Maharashtra, having Pan presence Plant ( Factory) & Office dealing in the business of Oil Blending and refiling of Lubricant Oil and Gas ( LPG ).
In term of Section 2 A of the Industrial Disputes Act , 1947. from our perspective Appropriate Government in our case is Central Government. As we dealing in business which is related to Oil Industries
We have entered in to the Service Agreement with Private Security Agencies for providing security services for our Pan Presence of Factory and Offices which is coming to end by 31st March 2017.
Due to increased in Special Allowance / VDA Notified by State Government / Central Government every Six Month, Private Security Agencies are raising bill demanding difference in DA / Special Allowance.
As per Central Government Notification 2233 Dated 18th September 2008, as per Explanation for the purpose of Notification at Serial number 2 & 4 which read as follow
(2) Where the Existing rates of Wages of any employee based on contract or agreement or otherwise are higher than the rates notified herein, the higher rates shall be protected and treated as minimum wages, applicable for the purpose of this notification to such employee.
(4) The Minimum rates of Wages are applicable to employees employed by Contractors also.
Now the September 2008 Central Notification is superseded by Central Government Notification Dated 19 Jan 2017. number SO 191 E.
As per Explanation for the purpose of Central Notification dated 19 Jan 2017 at (c) & (f) are same as of Serial number 2 & 4 of Central Notification 18th Sep 2008
Further Explanation (j) Central Notification dated 19.01.2017 which read as follow.
Wherein in any area the minimum rates of wages fixed by this notification are lower than the minimum rates of wages fixed by State Government for employees of the aforesaid employment in relation to which the State Government is the Appropriate Government, the rates of wages fixed by the State Government shall in respect of these areas, be deemed to be the minimum wages payable under this notification.
Q Who will be Appropriate Government State Government OR Central Government in our case?
Q Does above Two Notifications are applicable to us as we are Principal Employer & Not the Contractor ?
Q Which Notification we have to follow State Government Notification OR Central Government Notification with regard to Explanation (2) of 2008 notification &(j) of Notification 19.01.2017 attached as above of Central Notification for paying Minimum rates of Wages?
A line in reply is appreciated for such act of kindness I remain indebted to you.
Thanks and regards,
krishna mohan
(Expert) 26 March 2017
Minimum wages to be adopted will be either fixed by State Govt. or Central Govt. If your contract is based on Central Labour Commissioner fixed minimum wages then you need to comply with. It is a welfare legislation to assure minimum wages to workmen and hence you may adopt either consistently and not both. If you are employing on behalf of your principal employer being Govt. of India owned institutions, you need to adopt to CLC.
Azim A. Charania
(Querist) 30 May 2017
Need help with regards to new section Section 271DA Income Tax Act – Penalty for failure to comply with section 269ST inserted in Finance Act from 01.04.2017.Kindly revert
