Difference in wages of regular and contract workers

GOVERNMENT OF INDIA

MINISTRY OF  LABOUR AND EMPLOYMENT

RAJYA SABHA

ANSWERED ON-18.12.2013

(a)whether there is a huge difference in the wages of a regular and a contract worker doing the same or similar work in industries and establishments both in public sector/Government departments and private sector;

(b)if so, the steps taken by Government to remove such difference in wages of labourers doing the same work;

(c)whether Government is considering to bring in necessary changes in the Contract Labour (Regulation & Abolition) Act, 1970 to end such situation; and

(d)if so, the details thereof?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI KODIKUNNIL SURESH)

(a): No such information is available with this Ministry. However, under the provisions of the Minimum Wages Act,1948, no separate wage is fixed for contract workers by the appropriate Government under their jurisdiction. The minimum rates of wages fixed for a regular worker in an employment are also applicable for workers on contract basis for similar work.

(b): A provision already exists under rule 25(2)(V)(a) of the Contract Labour (Regulation & Abolition) Rules, 1971 that in cases where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the Principal Employer of the establishment, the wage rates, holidays, hours of work and other conditions of service of the workman of the contractor, shall be the same as applicable to the workmen directly employed by the Principal Employer of the establishment on the same for similar kind of work. Provided that in case of any disagreement with regard to the type of work the same shall be decided by the Deputy Chief Labour Commissioner (Central). The Act also makes it mandatory for the contractors/employers to pay minimum wages fixed by the Government. If the contractor fails to pay the minimum wages to the contract labour, the Act makes its obligatory for the Principal Employers to pay the same.

(c) & (d): A proposal to amend the Contract Labour (Regulation & Abolition) Act is under the consideration of the Government.

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