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MADHUSUDAN SARKAR (MANAGING PARTNER)     19 February 2011

MINIMUM WAGES

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 4 Replies

MADHUSUDAN SARKAR (MANAGING PARTNER)     19 February 2011

Labour supply tender accepted by A&N Command(PRINCIPAL EMPLOYER) and OUR Firm(CONTRACTOR), accordingly Rates fix up. In the tenure of execution of the contract, the GOVERNMENT changes Labour rate by Circular.  Nothing mentioned in tender to get this hike rate. Now to assure Minimum wages of labour can we claim the difference from A&N Command which arises from Government circular?

ABC COMPANY, PORT BLAIR>03192-226362.

 

 

V. VASUDEVAN (LEGAL COUNSEL)     20 February 2011

If the tender/contract is based on cost plus model i.e. the principal employer has contracted to pay the fixed wages + a percentage service charges, the principal employer has to consider the rise in minimum wages. If the contract is lumpsum, then the contractor need to re-neogiate the contract. ALthough the principal employer is liable to ensure that the minimum wages are paid to the contract employees, who pays the minimum wages is an issue to be decided  as a part of the contract.vasudevan

1 Like

sambasivakamasani (Sr Pur and Stores Officer (Rtd) ISRO)     02 November 2011

In the first instance, the agreement might have drafted to take care of living allowances that are hiked by the govt. six monthly once.  Even otherwise also, as statutory requirement, the contractor should get the hike from the government, lest, the contractor certainly ignore this while paying wage to the worker.  Then again the burden falls on the principal employer to ensure payment of minimum wage consists of basic and da or ada or living allowance. Pl. comment.

jaykumtekar (Legal Advisor)     02 November 2011

When there is a contract for paying minimum wages any increase in the Special allowance will lead to increase in the minimum wages and hence it is incumbent upon you are a direct employer to pay the minimum wages.

However, it depends upon the type of the agreement you have entered into to claim reimbursement for the differential amount paid by you.


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