Meaning of ‘Contracting out’ under the Minimum Wages Act, 1948

Contracting out under Section 25 of the Minimum Wages Act, 1948 refers to a situation in which an employer hires a worker through a contractor rather than directly employing the worker. The Act requires that all workers, including those hired through a contractor, be paid the minimum wage as determined by the Government.

The employer is responsible for ensuring that the minimum wage is paid even if the worker is hired through a contractor. This provision is intended to prevent employers from avoiding their obligation to pay the minimum wage by hiring workers through a contractor.

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