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VENDOR COMPLIANCE | |||
| 31 | There is an ESIC inspection coming up. The vendor has produced copies of the challans of contributions. Is this enough?
No, the Inspector will not accept this alone as there is no proof that ESIC has actually been deposited on behalf of the employee at the site. The vendor needs to produce a full contribution history for each employee at the site along with the challans. Also the vendor needs to tally the invoices raised on labour charges vs. actual wages disbursed and ESI challan paid for that particular client |
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| 32 | There is an ESIC inspection coming up. The vendor has produced copies of the challans of contributions. Is this enough?
No, the Inspector will not accept this alone as there is no proof that ESIC has actually been deposited on behalf of the employee at the site. The vendor needs to produce a full contribution history for each employee at the site along with the challans. Also the vendor needs to tally the invoices raised on labour charges vs. actual wages disbursed and ESI challan paid for that particular client |
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WAGES | |||
| 33 | The vendor is based in Noida (Uttar Pradesh) but our site is based in Gurgaon (Haryana). The vendor rotates his staff across different sites and pays his staff as per the minimum wages of UP and is claiming to be compliant. Is this acceptable ?
Minimum Wages have to be paid as per the rate of the State in which the site is situated. Thus, for the period that the employees are based out of Haryana, those minimum wages will have to be paid. |
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| 34 | The vendor is based in Noida (Uttar Pradesh) but our site is based in Gurgaon (Haryana). The vendor rotates his staff across different sites and pays his staff as per the minimum wages of UP and is claiming to be compliant. Is this acceptable ?
Minimum Wages have to be paid as per the rate of the State in which the site is situated. Thus, for the period that the employees are based out of Haryana, those minimum wages will have to be paid. |
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| 35 | The client is an Insurance company. The vendor is paying the minimum wages as per the state rules. Is this acceptable ?
Certain types of companies like Airlines, Banks, Insurance Companies and other companies owned by the Government are governed under Central Labour Authorities and not the state labour authorities. Thus the Central Minimum Wages will apply and not the State Wages. Sometimes the State Minimum Wages are higher and the State Inspectors demand that the higher wages be implemented so it is safest to take the higher of the two amounts. |
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| 36 | The client is an Insurance company. The vendor is paying the minimum wages as per the state rules. Is this acceptable ?
Certain types of companies like Airlines, Banks, Insurance Companies and other companies owned by the Government are governed under Central Labour Authorities and not the state labour authorities. Thus the Central Minimum Wages will apply and not the State Wages. Sometimes the State Minimum Wages are higher and the State Inspectors demand that the higher wages be implemented so it is safest to take the higher of the two amounts. |
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| 37 | The vendor does not seem to pay Overtime even though his employees are working beyond normal hours. They also keep the same staff working for 7 days. Will the inspector find out?
Inspectors can demand to see in and out records and are also free to talk to any employee. It is not safe to continue this practice. The vendor must pay Overtime at double the rate of GROSS WAGES and provide a weekly off to all employees. |
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| 38 | The vendor does not seem to pay Overtime even though his employees are working beyond normal hours. They also keep the same staff working for 7 days. Will the inspector find out?
Inspectors can demand to see in and out records and are also free to talk to any employee. It is not safe to continue this practice. The vendor must pay Overtime at double the rate of GROSS WAGES and provide a weekly off to all employees. |
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| 39 | The vendor’ employees have worked on a National Holiday (26th Jan) for 16 hours. How to calculate overtime considering his average daily wage rate @Rs.200 for 8 hours.
First of all the vendor’s employees should be restricted from working continuously for 16 hours. In case of exigency , he is made to work, he needs to be paid double the rate of wages for hours he has worked additional than normal 8 hours working.For. E.g. for 16 hours working, the rate for first 8 hours = RS.200; the rate for next 8 hours would be Rs.400 (double the rate of wages), thus totaling to Rs.600 for working 16 hours on that particular day. If he has worked on a National Holiday, he should get double the wage Rate i.e. Rs.1200 (Rs.600 x 2) |
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| 40 | The vendor’ employees have worked on a National Holiday (26th Jan) for 16 hours. How to calculate overtime considering his average daily wage rate @Rs.200 for 8 hours.
First of all the vendor’s employees should be restricted from working continuously for 16 hours. In case of exigency , he is made to work, he needs to be paid double the rate of wages for hours he has worked additional than normal 8 hours working.For. E.g. for 16 hours working, the rate for first 8 hours = RS.200; the rate for next 8 hours would be Rs.400 (double the rate of wages), thus totaling to Rs.600 for working 16 hours on that particular day. If he has worked on a National Holiday, he should get double the wage Rate i.e. Rs.1200 (Rs.600 x 2) |
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