Dear Sir, Requesting all my Seniors and brothers, please help me to resolve my query:
We hired an employee on our company payroll and deployed it in a client location in other states. We don't have any branch office in that State. Please let me know, which State's statutory compliance we have to be followed. On which State's Minimum wages Salary should be paid to the employee. If we will pay the wages according to the Client's State then how to compliance for Professional Tax as Professional Tax is applicable in Client's State and we do not have any branch office in client State.
Thanking You

From India, Delhi
Dear Sahil,
While fixing Statutory minimum wages for the scheduled employments under the Minimum Wages Act,1948, the location or the place of employment is an essential factor. In all matters pertaining to employment issues, generally the place of work is the decisive factor in the determination jurisdiction. Therefore, by whom and where the employee is recruited or appointed is immaterial but only where and for whom his services are actually engaged determine his employment rights and benefits and his liability to local taxes like professional tax. Therefore, such an employee deputed to a client's site should be paid the minimum wages applicable to the client's state and the P.T should be deducted and paid over to the local authority of his place of employment.

From India, Salem
KK!HR
1534

What Umakanthan Sir stated above is the correct position of law.
From India, Mumbai
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