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p bordoloi (aao)     24 May 2017

Payment of wages to drivers of hired vehicle hired from contractors

We are a central government PSU and we are taking vehicle from contractors on contract basis . The rate of hire charge includes the drivers salary . Wages are being paid to the drivers by their contractor as per the minimum wages of the state Government ( ie the state in which the central psu is located) Now the drivers are claiming wages as per the minimum wages fixed by the central Government ( minimu wage revision of central Govt 2016) The wage revision of that particular state was announced in 2011 ,furher there is no revision. Now kindly forward the views regarding the following :- (1) Can the drivers be termed as " contract labour) as per the Contract labour(Regulation and Abolition)Act 1970? (2) Whether we have the responsiblity as per above Act on the issue? (3) Whether the drivers should get their wages as per the rules applicable to the central Govt PSU instead of the State Minimum wages ? Kindly note ;- The vehicles are hired from the contractors continuosly minimum for 3 years to the same contractor depending on performance . The agreement is silent regarding the modalities of fixation of wages of drivers . The wage was fixed on lumsum babsis .


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 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     24 May 2017

 Whether or not you hire delivery drivers as employees or independent contractors they need to be paid fair wages. Here is a resource that can help you figure out how much you should be paying your drivers. Hiring them as independent contractors is less expensive, which often why authorities try to cut corners and costs by calling them independent contractors, but treating them like employees. Don’t try to cut corners, do the right thing.


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