Dear Seniors,

Greetings of the day! I need your help regarding contractual employment. We have a housekeeping boy on the payroll of another agency. We want to employ him on a contract basis so that we could pay him more in-hand salary. As we are an IT company under the Haryana Shop & Establishment Act, now my queries are:

1. Are contract employees entitled to PF, ESI, or other benefits?
2. What is the leave policy for unskilled contract employees?

Hoping for your prompt responses. Thanks in advance.

Regards, Arti (HR)

From India, Delhi
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Dear Arti,

You can employ this housekeeping boy on your payroll as a contractual employee. He will also be eligible for benefits such as ESI and PF if these Acts are applicable to your establishment. Additionally, he will receive all leave benefits provided to other employees under The Punjab Shops & Commercial Establishment Act, 1965, as applicable to the State of Haryana.

R.N.KHOLA (LL&IR)
Welcome Skylark Associates

From India, Delhi
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Dear Arti,

It is further to be made clear that if this housekeeping boy is taken on your team, then the question of the applicability of The Contract Labour (R&A) Act, 1970, and The Haryana Contract Labour (R&A) Rules, 1975 does not arise. Accordingly, he will not be in a position to avail any benefits under this Act.

Regards,
R N KHOLA

Welcome Skylark Associates


From India, Delhi
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Hello Sir,

I am confused. In an earlier post, you mentioned that he would be entitled to PF, ESI, and other benefits. However, in a recent post, you stated that he would not be eligible for any benefits under this act. Please clarify. If you don't have any issue, kindly provide me with your mobile number.

Thanks & Regards,
Arti Pathak
(HR Executive)

From India, Delhi
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Dear Arti,

I am clarifying that the Contract Labour (R&A) Act, 1970 will not be applicable if this housekeeping boy is directly employed by you. According to the posting guidelines on CiteHR, management does not allow us to provide email and telephone numbers. I would like to emphasize that other Acts will be applicable. If your unit is covered under the ESI and PF Act, then he will also be covered under these Acts.

R N KHOLA

From India, Delhi
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Dear Arti,

According to Section 1(4) of the Contract Labour (A&A) Act, 1970, it applies:

(a) to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour;
(b) to every contractor who employs or who employed twenty or more workmen on any day of the preceding twelve months.

Regards,
R N KHOLA


From India, Delhi
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