Lokayukta issues directions to ensure minimum wages to outsourced employees

Lokayukta P. Vishwanatha Shetty issued directions to the Labour Department to ensure all outsourced employees working for the State government and in various institutions of the State are paid minimum wages.

“Details of agencies that have supplied labour to government agencies need to be recorded, and any default on their part on payment of ESI, PF and other benefits should lead to their disqualification and take steps not to renew their licence for future years,” he said in his order.

Mr. Shetty recommended that a system be put in place where governments departments report on the agencies they have roped in and the number of employees engaged through outsourcing every year. A software portal can be developed to make this a permanent feature he said.

He further noted that given that labour contracts are also governed by the lowest bidder rule, many agencies were recording their service charge/commission as low as ₹1 or ₹2, sometimes even as nil. “It is desirable to fix the minimum marginal amount as commission/service charges, above which the tender could be submitted for avoiding improper practice by outsourcing agencies,” he said.

He suggested that the Labour Commissioner form a committee of experts to finalise guidelines for outsourcing of employees, including those suggested by him, in the next eight weeks.