Equal pay for daily wagers contract labourers and regular employees

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA
STARRED QUESTION NO-346

ANSWERED ON-28.03.2018

Equal pay for daily wagers contract labourers and regular employees

346 . Dr. Satyanarayan Jatiya

(a)the policy of “equal pay for equal work” and the effective measures taken for the implementation of the same; and
(b)in reference to (a) above the measures taken to ensure equal payment to daily wagers and contract labourers employed in institutes, establishments and companies of Government and private sector as is being given to regular employees employed there?

ANSWER
MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): A Statement is laid on the Table of the House.
* ******

STATEMENT REFERRED TO IN REPLY TO PART (a) & (b) OF THE RAJYA SABHA STARRED QUESTION NO. *346 FOR 28.03.2018 BY DR. SATYANARAYAN JATIYA REGARDING EQUAL PAY FOR DAILY WAGERS/CONTRACT LABOURERS AND REGULAR EMPLOYEES.
******
(a) & (b): The principal of “equal pay for equal work” was examined and laid down by the Hon’ble Supreme Court in the civil appeal number 213 of 2013. The issue before the Hon’ble Supreme Court was as under:
“whether temporarily engaged employees (daily-wage employees, ad- appointees, employees appointed on casual basis, contractual employees and the like), are entitled to minimum of the regular pay-scale, alongwith dearness allowance (as revised from time to time) on account of their performing the same duties, which are discharged by those engaged on regular basis, against sanctioned posts”

The Hon’ble Supreme Court held that:

“There can be no doubt, that the principle of ‘equal pay for equal work’ would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post”
The above judgement of the Hon’ble Supreme Court dated 26th October, 2016 covers various sets of temporarily engaged employees, viz. daily-wage employees, ad- appointees, employees appointed on casual basis, contractual employees etc. It is mandatory for the employer/principal employer to comply with the provisions of labour laws and apply the ratio laid down by the Hon’ble Supreme Court regarding “equal pay for equal work” while paying wages to its workers/labourers.
In so far as the contract labour is concerned, the Contract Labour (Regulation & Abolition) Central Rules, 1971 provides for wage parity as stipulated in rule 25(2)(v)(a) which is reproduced below:

“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 workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work”