Non payment of minimum wages by outsourcing agencies

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA

QUESTION NO 2327

ANSWERED ON 18.03.2015

Non payment of minimum wages by outsourcing agencies

2327 Dr. T.N. Seema

Will the Minister of LABOUR AND EMPLOYMENT be pleased to satate :-

(a)whether it is a fact that many services of Government departments/ semi- Government/Public Sector are operated and delivered through outsourcing agencies and that the employees of such agencies are not provided adequate salary as per the Minimum Wages Act, medical facilities and PPF Schemes;
(b)if so, the reaction of Government and the mechanism existing with
Government to ensure payment of minimum wages to their employees as per the Minimum Wages Act; and
(c)the action taken against those outsourcing agencies for non-payment of minimum wages to their employees as per the Minimum Wages Act during last two years and the current year?

ANSWER

MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) to (c): Yes, Sir. The workers are engaged through agencies as per provisions of General Financial Rules. Under Minimum Wages Act (MW Act), if any short payment is detected then claim is filed before the authority by the officer in addition to filing of the prosecution against the outsourcing agencies in the court of law. Authority directs to pay the difference of actual wages paid and minimum rates of wages fixed under Minimum Wages Act, along with compensation. The details of the enforcement of the Minimum Wages Act, in the Central Sphere during the last two years and the current year are at Annexure.

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Source: RajyaSabha.nic.in