Minimum wages act

The matter requires professional consultation. Anyhow, it would be hasty decision to reduce the wages being   paid presently.

This is a policy matter and not a legal issue.

If the terms of employment states something different but the company wants to change the policy then the decision to reduce the wages of the drivers due to change in policy is not legally maintainable.

The aggrieved drivers may approach labor court for remedy because the company is contradicting or violating its  own rules and breaching the conditions of employment which can be termed as an illegal act.

Therefore you may discuss with the labor uninion about this and take considered decision in the meeting with the union leaders/members before tyring to implement any policy affecting the welfare of the employees.

Minimum Wages is a State subject which differ in each State.

Where ever the employer is located, rule of the State shall be applicable.

It is really uphill task to reduce wages.  Better drop this idea.  Courts are not likely to appreciate decision of redunction of wages already being paid (more than miimum wages in the state).

remembert : these are minimum wages and not maximum wages.

The very objective of the Minimum Wages Act is to ensure that employees are assured of the minimum wages, not that they are not wages above the threshold. 

I am afraid your Company has misconstrued the public policy.

more clearly explained by Mr Venu

Minimum wages prevelent in the area cannot be used as as too, for reducing wages.

Thank you all for your reply.

To be more precise, the summarised query is as under:

Company A is a wholly-owned subsidiary of Company B (which is a JV of PSUs). Company A, through a hired manpower agency, provides drivers only to central PSUs and ministries scattered throughout the country. The manpower agency maintains the muster rolls of the drivers which are shared with Company A for vetting and payment monthly. The queries with respect to the payment of minimum wages to the drivers are as follows:

1. Will the Minimum Wages paid to the drivers be that of central or state, considering that all PSUs & ministries to whom drivers are made available are all central government owned and are scattered in different states?
2. Company A has been paying state wages so far in line with the agreements executed with different PSUs, what should be the course of action? 

Will the Minimum Wages paid to the drivers be that of central or state, considering that all PSUs & ministries to whom drivers are made available are all central government owned and are scattered in different states?

Company A has been paying state wages so far in line with the agreements executed with different PSUs, what should be the course of action?
 

In whatever couched words you put it.  You cannot reduce the wages already paid.

Admittedly, the employer is a PSU?  As such, why you are trying to smarter than the public policy?

If it is PSU then you cannot pay jus tmiimum wages.

concept of equal pay for equal work nakes them (outsourced employees) entitled to be paid as par the govt scales adopted by the PSU.

The funny proposal can lead he management in big trouble.