Minimum wages

--Kerala: The IT sector has been classified under eight categories with the monthly basic wages starting from Rs.4,480 to Rs.9,785 for different posts. In addition to the basic rate of wages, the employees are eligible for Dearness Allowance.Similar notification has also been issued for workers employed in the operation of Software systems, Electronics industry and Export Processing Zones.

Gazaette Notification is enclosed.

--You may approach the O/o Labor Commissioner and obtain rules pretaining to your state.

Kindly look into the attachments.

It is felt that earned wages can not be reduced and answer to Q.2&3 is Yes. You may approach the O/o Labor Commissioner and obtain rules pertaining to your state, and you shall get the precise answer to Q1.

Q.4  It is heartening to note that you have raised this query. The approach to Q4 can be adapted as per the situation, and situational management may just be right approach.

--The promoters are not interested/least interested/do not pay attention/have a notion that state laws-rules and not severe/are defunct, and we shall cross the bridge when it comes.

--The process is made responsibility of the HR and HR is not able to produce sufficient notes to the promoters and convince them that is a liability which company has to fulfill.

--Employees do not raise their voice. Company does not have any IC/Union and employees are not member of any trade union.

--Promoters/HR recruit the mix fresher’s/experienced candidates who have liabilities and succumb to tactics and pressures f the company and company has a high attrition rate.

--O/o Labor Commissioner has not taken suo moto notice for the industry/company.

--Promoters are busy making money/running the company/generating orders and are ill informed/inadequately informed and depend upon HR personnel to come to them and inform and/or convince them.

--HR team consists of one or a few number of personnel and HR personnel are not highly/properly informed.

--Promoters have not engaged legal/HR consultant or are not willing to spend on such engagements and thus whatsoever is the HR team, the team has to liaison and gather proper inputs/info and act on it.

The HR team may compile proper info/laws/acts, prepare a presentation and explain the pros and cons to the promoters. HR personnel while drafting salary structure should fragment it properly into basic, DA, VDA etc and point out to the promoters that the min. wages, applicable are and seek approval. HR must not flout the law of the land and should become firm, and may advice to seek opinion from legal advisor/labor law consultant and ask the legal advisor to wet the decision of promoters.

HR must perform good Hr practices. HR must not become party and flout norms.

Valuable advice of learned experts/members is sought.

Dear Sir,

Thanks for your kind input.

In my company the situation is

*Employees don't raise their voice.

*As an HR, I had discussion with the promotor of the company. He has declined to follow the rules and told me, don't teach me, do whatever is told to you.

*I'm helpless, I don't know what to do.

Help me to handle this situation.

You may visit the O/o Labor Commissioner and obtain copy of rules (soft copy/hard copy) and attach these with your draft for approval.

From your posts it is felt that you have been with this company for quite some time.

May be it is time to move over and cross the floor. Look for good company with good HR practices. 

Dear Doab Sir,

Thanks alot for your help. I'll definately follow your instructions. thanks

Dear Sachin,

The threads in LCI Forum are interactive and to share the opinion. Kindly do not consider the heartfelt opinion as instruction or authoritative. As you are most close to the promoter you are the best judge of the situation.

If you look into the attachments in this thread you shall note that Kerala was the first state to introduce the expressive rules for your sector. Whereas software hub like Banglore/Karnataka are found as not expressive ones. States may have their own expressive ones. Hence for finding the specific expressive rules one need to interact with the o/o concerned authority. The domain your job demands close follow up of rules, latest introductions, and hence interaction with Labor consultants and O/o Labor Commissioner. Today if you are not located in Kerala, tomorrow may be or in some other state. You need to find ways and means to update yourself. One has to learn to handle the boss. Dealing with employer has become a game of chess and it is better to learn the game and become master of the game and enjoy tranquility and peace of mind. Employers do not marry the employee and employee should also not treat employment as marriage. Employee should endeavor to do his best and strive to excel.

A stressed employee becomes sitting duck and is often made a scapegoat.

While one is young/ has relatively exposure to nuances of the trade/ company does not have full legal-HR-Labor faculty, the promoter (s) is (are) rigid/autocratic/not inclined to adhere to rules/ does not provide access to journals-law books/does not bother about legal implications/or believes in passing on the buck-blame to HR executives/manager, employee has no other alternative but to look out and generate information to do his/her job properly and update the knowledge. This may be a blessing in disguise.

If you gather some useful information applicable to your state post it in the forum. It shall help many who visit the forum.

I fully endorse the views of Doab.

I am not aware about any minimum wages being fixed for IT companies.The reason probably is that minimum wages are survival wages and are based on minimum requirement for survival.The same are fixed by relevant state Govt. taking in to consideration the local  living Index.In any case The IT companies would be amenable to minimum wages of shops and establishments Act in that state.It is the right of the workmen to receive minimum wages. Not paying minimum wages is criminal offence warranting fine by way of punishment.There are Inspectors appointed under the Act to ensure compliace with the Act.The workmen do not receive minimum wages at the mercy of the Employer but it is their statutory right.In case the minimum wages are not paid, the remedy is available under the Act itself.

Dear Sachin,

Kindly go thru the SE Act of your state and liason with O/o Labor Commissioner and you may have the just soloution. Draft a proposal ( enclose the copies of Acts) for the employer based on acts and facts and request to approve. Thus you shall do your job of making proper recommendations.

Thanks alot to all of you. I'll see, if I can share some useful information on such threads. Thanks again, it's really helpful. I'll definately find out a way to slove all these problem.

Heartfelt thanks to learned Mr. Makkar, Mr. Paranjape for their valuable contribution and advice.