Private security company breaks minimum wage law

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Security guards – skilled workers

According to the 2015 report by the Federation of Indian Chambers of Commerce and Industry (FICCI) -Grant Thornton, the security services sector is emerging as a job-generating machine, employing seven million people and growing at a rate of 20%. Its value has increased from Rs 40,000 crore in 2014 to Rs 80,000 crore in 2020. It has been estimated that the Indian private security industry will generate around 5 million additional jobs by 2020, but the COVID pandemic 19 caused a big setback to this industry. The governance mechanism for private security guards (PSG) is provided for in the Private Security Agencies Act (Regulation) of 2005, commonly referred to as PSARA. The law allows each state and UT to formulate different rules for the implementation of the PSARA. Some states have formulated their own set of rules, including Delhi Private Security Agency Rules (Regulation), Haryana Private Security Agency Rules 2007 (Regulation), Private Security Agency Rules 2007 of Uttar Pradesh (regulation), 2007. J&K has not yet formulated the rules after this law was extended to J&K after the repeal of section 370. The Department of Labor and Employment of the Indian government has published its notice in the Gazette of January 19, 2017 reclassifying security sector workers under the Minimum Wages Act 1948 (MV Act) and amended the applicable minimum daily wage rate as follows:

Unarmed security guards were categorized as “skilled workers” compared to semi-skilled workers according to the 2008 notification

Armed security guards and security supervisors have been classified as “highly skilled workers”

This notification was indeed a milestone and a great opportunity for the private security industry in India as higher payouts would allow the industry to attract better quality and better talent. Instead of viewing these security guards as skilled or highly skilled workers and paying them accordingly, Datar’s security services ironically decided to reduce wages from Rs 7,000 to Rs 5,500 per month, which is a violation of the Minimum Wages Act (MV Act 1948). . A few years ago, the Indian government revised the minimum wage payable to employees working in the Watch & Ward sector to Rs. 637 per day. This means that a security guard should be paid Rs 19,110 per month, but these hard workers were only paid Rs 7,000 which was never even noticed until they arrived on the premises. roads against the new company which decided to further reduce their wages. It is simply a criminal act that the government must take into account.


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