In a recent development, the Ministry of Labor and Employment has introduced six statutory obligations on the Government e-Marketing (GeM) portal. The move aims to safeguard the interests of contract workers involved in manpower hiring through outsourcing agencies in Government of India offices.
Expressing concerns about underpayment and unauthorized deductions affecting contractual employees, Union Labor Secretary Ms. Aarti Ahuja addressed a letter to State and Union Territory Secretaries and Administrators. The letter highlights issues such as delayed salary payments and insufficient contributions to EPF and ESIC by contract agencies.
To counter these challenges and ensure the protection of employee rights, the Union Labor Secretary has advised State and Union Territory authorities to include the following obligations in their contracts:
1. Mandatory Timely Payment: Agencies must ensure timely payment of EPF and ESIC contributions.
2. Minimum Wage Compliance: Service providers/contractors are responsible for ensuring payments not below the government-fixed minimum wages.
3. No Unauthorized Deductions: Prohibition on any unauthorized deductions from employee salaries.
4. Timely Payment under Labor Regulations: Adherence to the Contract Labor Regulation and Abolition Act 1970, with the principal employer/procurement contractor ensuring timely payment of contract workers. In case of non-compliance by the service provider/contractor, the principal employer/purchaser becomes liable for direct salary payments to employees.
5. Bonus Payments: Service providers/contractors are obligated to pay bonuses to employees in accordance with the Payment of Bonus Act 1965, with reimbursement from the buyer.
This initiative aims to curb exploitation and ensure fair treatment of employees engaged in external contracts within State/Union Territory Government offices.