Mr. Brajeshwar Sharma Sr. Advisor, IR & HR Indian Banks’ Associaiton Mumbai
Dear Sir,
Wages payable to temporary employees
You will be aware that in many branches of various Banks, since permanent substaff are not being recruited to fill up the vacancies, Banks are engaging employees on temporary and casual basis. They are being paid either the statutory minimum wages as per the Minimum Wages Act or some adhoc lumpsum amount.
As per various judicial decisions as well as by the Government guidelines ( No. 49014/1/2017-Estt. dated 4-9-2019 of the Ministry of Personnel, Govt. of India), when a person is employed on a temporary basis in the place of permanent employee/vacancy, and where the work of the permanent employees and that of the temporary/casual employee are the same, he/she should be paid per day wages equal to 1/30th of the minimum of the Pay of that cadre along with DA thereon, that is, pro-rata of 1 day’s Pay + DA of the 1st stage of the substaff cadre.
Where the work of the permanent employee and the temporary/casual employee is not the same, then the wages payable under the minimum wages Act is to be paid.
But we regret that most of the Banks are not adhering to this basis and some paltry adhoc amount is being paid by the Banks to the temporary and casual employees even though they are extracted the same full day work of the susbtaff. We request you to issue a uniform advisory to all the Bank in this regard.
Thanking you,
Copy to:
Secretary, DFS, Ministry of Finance, GoI, Delhi Secretary, Ministry of Labour, GoI, Delhi