Madhya Pradesh Court Orders Minimum Pay for Contract and Outsourced Employees

In Madhya Pradesh, a major relief has been provided to millions of contract and outsourced employees regarding their pay and allowances. The MP High Court rejected the state government's appeal challenging the regularization and pay benefits decision.

The court refused to stay the decision given by the single bench in favor of contract employees, stating that this is an issue affecting a large class of workers, and hence cannot be postponed.

As a result, the order for providing minimum pay to contract and outsourced employees will remain effective. The court has instructed the government to follow the single bench's directive.

The single bench, led by Justice Vishal Dhagat, had stated on 9 April that contract employees who have completed 10 years of service will be entitled to the benefits of the policy issued by the General Administration Department on 7 October 2016.

The same benefits, including pay scale, allowances, and annual increments provided to daily wage workers upon regularization, will now also be extended to contract employees.