CAPSI Urges Government to Address Disparity in Payment Provisions under the Code of Wages Act  

News Punjab

Ludhiana, 23th May 2025 – The Central Association of Private Security Industry (CAPSI), representing over 10 million private security personnel and 30,000 agencies across India, has raised serious concerns regarding the disparity in wage payment provisions under the Code of Wages Act, 2019.

In a letter addressed to Sh. Tarunpreet Singh Sound, Labour Minister of Punjab, CAPSI emphasized the urgent need to introduce fair and equitable safeguards that hold both principal employers and contractors jointly liable for wage delays or shortfalls. The association strongly advocates the retention of Section 21(4) of the CLRA Act, 1970, which ensures that principal employers remain accountable for wage disbursement when contractors default.

President Harinder Singh highlighted that the current framework unjustly burdens contractors while letting principal employers escape accountability. This situation disproportionately affects small and medium service providers, pushing many towards financial distress and even closure.

CAPSI has called for the introduction of penalties on principal employers who fail to meet payment obligations within the stipulated timeframes. According to the association, this step is vital not only to protect the rights of service providers and workers but also to promote a healthier, more sustainable business environment.

The association expressed hope that the Labour Minister will take prompt and positive action to amend the provisions and safeguard the welfare of all stakeholders in the service

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