Please need urgent advice:
We are appointing operators through Man Power Agency and we will advice man power agency to depute their employees at designated sits.
We are paying operators a minimum wages as per Karnataka Shops & establishment Act of Rs.3516/-. Now one of our Client who is in business if engineering works, telling that they are the Principal employer of operators and operators/employees deputed by our Man Power will come under the preview of ‘Factories Act’ and not as per Shops & Establishment Act and our Client telling that we have to pay operators minimum wages as per Factories Act @ Rs.4000/-.
But question is that our Man Power Agency employees who works ultimately on behalf of us. Hence we will the Principal Employer for this also we had executed an Agreement with our client.
Since operators does not involve in an engineering works, just they are maintaining coffee and tea vending machines installed by us at our Client premises.
I request learned Members to advice on below doubts:
1. Whether we have to pay minimum wages as per Factories Act?
2. Agreement b/w us and our Client clearly says that ‘does not create any employee & employer relationship”.
3. Since we are the Principal Employer also We have indemnify our Client on this issues by executing ‘Indemnity Bond’
Kindly Let me know that we are liable to pay minimum wages as per Factories Act or Is it okay that we are paying as per Shops & Establishment Act?
