Calculation of releiver charges in watch & ward contract
S R Lakshminarasimhan
(Querist) 06 January 2013
This query is : Resolved
I request the experts to kindly clarify the following relating to the contract for hiring security personnel for watch & ward contract:
1. The minimum wages circulars of labour commissioner central indicate that the minimum wages are calculated considering the wages payable for holidays too. If so while calculating daily/hourly wages should we consider the total wages for 30 days or 26 days.
2. What is the reliever charge? The minimum wages act does not stipulate this as a charge. Is it a statutory levy ( if not can we disallow the revision of relieving charges made by the manpower agency every time the statutory revision of minimum wages take place)However, manpower agencies do take varying percentages (16 to 26 or at 1/4 to 1/6 of minimum wages for 31 days by adding on the EPF, ESI to it. Is it correct. How the reliever charges are to be calculated.
I will be obliged for an early response please.
Regards
sargur
Raj Kumar Makkad
(Expert) 06 January 2013
1. 30 days.
2. You should also follow the procedure being adopted by similar agencies.
S R Lakshminarasimhan
(Querist) 06 January 2013
Thanks for the reply sir
1 Since different agencies are claiming
reliever charges at different rates and
the minimum wages act does not mention of
this, the query was raised to get
enlightened on industry norms.
2 If its only a procedure, as an employer
can I negotiate on reliever charges too
as we do with the service charges claimed
by the agency during negotiation?
Thanks & Regards
Sargur
Raj Kumar Makkad
(Expert) 06 January 2013
This whole matter depends upon negotiations and mutual undertaking otherwise law do no specifically prescribed any set formula.
S R Lakshminarasimhan
(Querist) 06 January 2013
Thank you very much sir for the clarification.
Your clarification supports my view that the rates except for the minimum wages are always negotiable.
Thanks again.
sargur
