Minimum Wages Policy


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Minimum Wages Policy

  1. 1. A. Preamble: This document lays down broad guidelines so that the Institute's legal obligations as the principal employer under the Minimum Wages Act, 1948 and other related acts, are properly discharged. The Institute constituted a Minimum Wage Monitoring Committee (MWMC henceforth) in Nov. 2000 and the guidelines are based on the experience of the committee over the past 5 years. B. Work quantum calculation: 1. The labour component of a contract in terms of skill level and person-days shall be done based on objective criteria. Where required, such data will be explicitly recorded for future reference. 2. The labour component of any contract shall be separately and explicitly listed in terms of skill/ wage levels and man-days when estimates are prepared. C. Tender notices: 1. All tender notices must be displayed reasonably (at least 7 days) in advance on a public tender notice board meant for the purpose. 2. All notices should also be displayed on the Institute's website. D. Award of Tender: 1. The award of any tender with an explicit labour component to a bidder should be done by a committee that has representation from a) the end user group where the user group is clearly identifiable (e.g. Hostel) b) minimum wage monitoring committee. 2. Apart from technical conditions specific to a tender only bidders with the following documents shall be considered for award of a tender: (a) A certificate from the previous /current employers testifying that to the best of their knowledge contract labour and minimum wage laws have not been violated by the bidder. (b) For bidders who have worked on a previous contract with IIT Kanpur, a mandatory performance certificate from the MWMC. 3. The award letter shall include the conditions for contractors for contract labour as given in sections E, and shall state that acceptance of the contract implies the contractor shall abide by the conditions. E. Conditions for Contractors for Contract Labour: The contractor shall be responsible for fulfilling the requirements of all the statutory provisions of relevant enactments governing contract labour, viz. Minimum Wages Act 1948, Payment of Wages Act, 1936, The Workman’s Compensation Act, 1923, Industrial Disputes Act, 1947, Gratuity Act, Contract Labour (Regulations and Abolitions), 1970, Child Labour (Prohibition and Regulation) Act, 1986, etc. 1. Workforce: The following regulations have to be adhered to in the composition of the contractor’s workforce: (a) No worker below the age of eighteen (18) years shall be employed at work according to Child
  2. 2. Labour (Prohibition and Regulation) Act, 1986,. (b) The total number of workers from each category of skill / wage shall correspond to the specified requirement as stated by the Institute. (c) No disciplinary action against a worker may be taken by the contractor without due process as defined in Section E.6 of this document. (d) No worker may be removed, replaced or substituted by the contractor without following due process as defined in Section E.6 of this document. (e) Each worker employed by the contractor shall have a photo ID card issued by the Institute. Two passport size photographs of each worker along with a fee of Rs. 25 per head shall be furnished by the contractor for this purpose. All employees of the contractor shall carry the photo ID card with them at all times. 2. Working Conditions: The following regulations have to be adhered to in the designation and execution of work by employees of the contractor during the entire period of the contract: (a) Working Hours: The standard work day for individual workers shall be eight (8) hours long. In situations where the work involved requires broken duty hours, the total period at work cannot exceed 12 (twelve) hours, and there shall be four (4) hours of break-time during this 12 hour period. Any work performed beyond these specified hours shall be paid at the legally sanctioned rate for overtime work. (b) Attendance: (i) For each contract the contractor shall maintain a list of all workers employed on the contract along with their skill levels. Where relevant a shift-wise duty roster (on a weekly, fortnightly or monthly basis, as appropriate) for all workers will be maintained. A copy of the list as well as the roster shall be provided by the contractor to the Institute and the MWMC. (ii) The contractor shall maintain a daily attendance record of all workers in standard format on Institute-issued registers. (iii) The attendance registers maintained by the contractor shall always remain open for inspection by Institute authorized personnel, MWMC representatives, and all users. (iv) The Institute authorities may maintain parallel attendance records and / or perform surprise checks of workers to ensure the accuracy of the contractor's attendance records. (c) Safety Regulations: (i) The contractor shall follow all norms for workers’ safety as prescribed by the Contract Labour Act 1970, the Factories Act 1948, the ESI, and any other labour act governing safety issues at work. (ii) All equipment required for the hygiene and safety of workers should be cited in the bid document and are a required part of any valid bid. (iii) The contractor shall institute additional safety measures as and when needed during the execution of the specified work. The Institute shall reimburse the contractor for any expenses incurred in relation to the implementation of such safety measures upon production of proper bills by the contractor. (iv) The Institute, as principal employer of the workers and hence responsible for their safety, shall perform surprise checks to ensure compliance with all safety regulations at the workplace. (v) The contractor shall, at his own expense, take workman’s compensation insurance. He shall produce proof of such insurance within a reasonable time from the date of issue of the Letter of Acceptance of the Bid.
  3. 3. 3. Wage Payment: (a) All monetary transactions between the contractor and the workers shall take place only in the MWMC office in the presence of an MWMC representative. This includes, but is not limited to, the payment of any advances against wages due. (b) The contractor shall pay equal wages for men and women in accordance with the applicable labour laws. (c) The contractor shall not for any reason deduct any amount from the earned wage of a worker except for advances paid in the presence of an MWMC volunteer and present in the records of the MWMC. (d) The contractor shall ensure payment of workers’ wages on time according to Payment of Wages Act. (e) The contractor shall make overtime payments as per rules at the same time as the payment of regular wages to workers. (f) Wage payment will be considered to be completed successfully by the contractor only when the required MWMC payment slip is issued to the contractor by an MWMC representative. The Institute will not honour any claim by the contractor in the absence of the MWMC payment slip. 4. Sub-Contracting: (a) Any and all sub-contracting by the bidding contractor or by a sub-contractor shall only be done with the explicit written permission of the concerned Institute authorities. (b) All clauses listed in section E with regard to workforce, working hours, attendance, safety regulations, wage payments etc. shall be applicable to the sub-contractor. The bidding contractor, as the principal contractor, shall be fully responsible for enforcement of all clauses and be liable for any violations of any of the clauses by a sub-contractor at any level. 5. Contractor's Liabilities: (a) The contract shall be liable for termination after due process for any reported / observed / witnessed (by workers, Institute personnel, MWMC representatives, or users) instances of taking back wages from workers, threatening workers, physical abuse of workers, and / or forcing workers to provide services beyond those specified in the contract. (b) The contract shall be liable for termination after due process for any violation of any of the clauses stated above in Sections E1 to E4. 6. Due Process for termination of employment/ punishment of a worker: The purpose of due process is to uphold the principle of natural justice in case of contract workers in the Institute by ensuring that a worker is not punished without being heard and when punished, the punishment is in proportion to the offence committed. (a) For any minor act of misconduct like being late in reporting for work or being absent from work without informing, the punishment has to be proportional to the offence. Any such punishment has to be brought to the notice of the Institute in writing. A fine of up to a day’s wage in a month can be levied under the contingency of the following acts of misconduct: (i) Willful insubordination or disobedience to a reasonable order of the superior (ii) Theft, fraud or dishonesty with the employer’s property (iii) Willful damage or loss of employer’s goods
  4. 4. (iv) Any illegal gratification (v) Habitual absence without leave (vi) Habitual breach of any law applicable to the establishment (vii) Habitual late attendance (viii) Disorderly behaviour at work (ix) Habitual negligence of work (x) Striking work or inciting others to strike work (xi) Sexual harassment (b) If the worker still persists with such behaviour, a written warning shall be issued. Any such warning should be brought to the notice of the Institute and MWMC. (c) If such behaviour continues in spite of the warning, or in extreme circumstances, if a contractor is convinced that the duties of a worker have to be suspended such suspension has to be communicated to a worker in writing with reasons for the termination of duty. (d) Any such action of the contractor has to be immediately brought to the notice of the Institute The action will, in the normal course, be investigated by the grievance committee detailed in (g) below. The Institute may, if necessary, constitute a separate enquiry committee. Such a committee shall contain one representative each of the contractor and worker(s) respectively. The investigating committee can call upon any evidence and interrogate the two parties. During the period when the matter is under investigation the worker will be treated as on duty and be paid the due wage. (e) The proceedings of any such enquiry will be recorded and will be finished within two weeks in normal circumstances. The recommendations of the committee will be binding on both the parties. In awarding the punishment the concerned authority shall take into account the gravity of the misconduct, the previous record, and any other extenuating or aggravating circumstances. (f) In case of termination of employment all the dues of the worker shall be cleared before such termination. (g) All complaints by workers or contractors shall be duly investigated by a standing grievance committee headed by an MWMC representative (as Chairperson), user/institute representative, contractor's representative, worker's representative and optionally at most two members whom the Chairperson may co-opt to help the grievance committee. The contractor's representative and worker's representative will depend on the complaint being investigated and cannot include any person who is directly or indirectly associated with the complaint.