Hi, I am working in a Pharma Company as Manager of HR and Admin. We have a company staff of around 200 employees. Apart from that, we also employ contract labor. As the principal employer in the contract, we have obtained permission from the IF for 180 staff. If the limit is exceeded at times due to additional work, is it necessary to increase the staff limit provided by the contractor from the IF? Would there be any violation for such additional staff?
According to the Factory Act, a company should have a canteen facility if the staff strength exceeds 250. Since our company staff strength is around 200, we have not established a canteen so far. If we consider the contract labor for the staff count, then the total staff strength is more than 250. I seek your advice on the following: 1. Can we request the contractor to increase the labor strength beyond 180? 2. Are we obligated to open a canteen regardless?
Thank you.
Karun
From India, Madras
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4According to the Factory Act, a company should have a canteen facility if the staff strength exceeds 250. Since our company staff strength is around 200, we have not established a canteen so far. If we consider the contract labor for the staff count, then the total staff strength is more than 250. I seek your advice on the following: 1. Can we request the contractor to increase the labor strength beyond 180? 2. Are we obligated to open a canteen regardless?
Thank you.
Karun
From India, Madras
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Hi,
I am working in a Pharma Company as Manager of HR & Admin. We have a company staff of around 200 employees. Apart from that, we also employ contract labor. As the principal employer, we have obtained permission from the Industrial Federation (IF) for 180 staff. If there is a need to exceed this limit temporarily for additional work, is it necessary to increase the staff limit provided by the Contractor from the IF? Would there be any violation for employing additional staff in such cases?
According to the Factory Act, a company must provide a canteen facility if the staff strength exceeds 250. Currently, since our company staff strength is approximately 200, we have not set up a canteen. However, if we consider the contract labor for this calculation, the staff strength exceeds 250.
I have the following queries:
1. Can we request the contractor to increase the labor strength beyond 180?
2. Are we obligated to open a canteen regardless of the staff count?
Thank you.
Karun
From India, Madras
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I am working in a Pharma Company as Manager of HR & Admin. We have a company staff of around 200 employees. Apart from that, we also employ contract labor. As the principal employer, we have obtained permission from the Industrial Federation (IF) for 180 staff. If there is a need to exceed this limit temporarily for additional work, is it necessary to increase the staff limit provided by the Contractor from the IF? Would there be any violation for employing additional staff in such cases?
According to the Factory Act, a company must provide a canteen facility if the staff strength exceeds 250. Currently, since our company staff strength is approximately 200, we have not set up a canteen. However, if we consider the contract labor for this calculation, the staff strength exceeds 250.
I have the following queries:
1. Can we request the contractor to increase the labor strength beyond 180?
2. Are we obligated to open a canteen regardless of the staff count?
Thank you.
Karun
From India, Madras
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Dear Karun ji,
You raised two issues here. One is, I suppose, partaining to Insurance Fund under EPF&MP Act 1952 and another is pertaining to Factories Act 1948.
Your first issue is not clear to me. I just highlight the section 17(2A) of the Act pertaining to exempt any establishment from the operation of IF, for your perusal, as under:
This section permits the Central Govt., subject to specified conditios, to exempt any establishment from operation of all or any of the provisions of the scheme if employees of such establishments are, without making any ssperate contribution or payment of premium, in enjoyment of life insurance benefits which are more favorable.
Are you making compliance of your contract labours under your code and are in enjoyment of life insurance benefits? If yes, you need to apply for revision in exemption accordingly if the contract labours
Your second issue is pertaining of FA. You are advised to read the definition of "worker" as defined in section 2(l) which includes contract labour also. No staff is defined in FA. So on case total employees more than 250 including of contractor's, canteen is mandatory.
Hope you as a HR Manager not testing the knowledge of contributing members like me of this forum.
From India, Mumbai
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You raised two issues here. One is, I suppose, partaining to Insurance Fund under EPF&MP Act 1952 and another is pertaining to Factories Act 1948.
Your first issue is not clear to me. I just highlight the section 17(2A) of the Act pertaining to exempt any establishment from the operation of IF, for your perusal, as under:
This section permits the Central Govt., subject to specified conditios, to exempt any establishment from operation of all or any of the provisions of the scheme if employees of such establishments are, without making any ssperate contribution or payment of premium, in enjoyment of life insurance benefits which are more favorable.
Are you making compliance of your contract labours under your code and are in enjoyment of life insurance benefits? If yes, you need to apply for revision in exemption accordingly if the contract labours
Your second issue is pertaining of FA. You are advised to read the definition of "worker" as defined in section 2(l) which includes contract labour also. No staff is defined in FA. So on case total employees more than 250 including of contractor's, canteen is mandatory.
Hope you as a HR Manager not testing the knowledge of contributing members like me of this forum.
From India, Mumbai
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Dear Mr. Karunakaran,
Greetings of the Day.
As an HR Manager, you must be fully conversant with the statutory obligations/responsibilities as a Principal Employer (PE) in any manufacturing industry. Anyway, you have asked two queries:
1. Regarding IF? Can you explain what it means? Then your query will be addressed suitably.
2. Regarding Canteen Facility: As per the provisions of The Factories Act, 1948, Sec - 46, it is clearly mentioned that any factory wherein more than two hundred and fifty workers are ordinarily employed, a Canteen or canteen shall be provided and maintained by the occupier for the use of the workers.
Not only a canteen, but as a PE, you have to strictly adhere to other statutory provisions of the said Act.
Who are considered as Workers? It is clearly mentioned in the said Act that WORKERS means a person (employed, directly or by or through any agency (including a Contractor/Subcontractor) with or without the knowledge of the Principal Employer... (For full details, please refer to the said Act).
Thanks,
Anil Sharma
From India, Pune
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Greetings of the Day.
As an HR Manager, you must be fully conversant with the statutory obligations/responsibilities as a Principal Employer (PE) in any manufacturing industry. Anyway, you have asked two queries:
1. Regarding IF? Can you explain what it means? Then your query will be addressed suitably.
2. Regarding Canteen Facility: As per the provisions of The Factories Act, 1948, Sec - 46, it is clearly mentioned that any factory wherein more than two hundred and fifty workers are ordinarily employed, a Canteen or canteen shall be provided and maintained by the occupier for the use of the workers.
Not only a canteen, but as a PE, you have to strictly adhere to other statutory provisions of the said Act.
Who are considered as Workers? It is clearly mentioned in the said Act that WORKERS means a person (employed, directly or by or through any agency (including a Contractor/Subcontractor) with or without the knowledge of the Principal Employer... (For full details, please refer to the said Act).
Thanks,
Anil Sharma
From India, Pune
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Dear Karunakaran,
When the number of contract workmen exceeds the approval of the Inspector of Factories, strictly speaking, it is to be informed to the IF. For the calculation of the number of employees, the employees entered in Form-1 are to be taken.
ANBALAGAN
From India, Tiruchchirappalli
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When the number of contract workmen exceeds the approval of the Inspector of Factories, strictly speaking, it is to be informed to the IF. For the calculation of the number of employees, the employees entered in Form-1 are to be taken.
ANBALAGAN
From India, Tiruchchirappalli
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Dear Karunakaran,
When the number of contract workmen exceeds the approval of the Inspector of Factories, strictly speaking, it is to be informed to the IF. For the calculation of the number of employees, the employees entered in Form-1 are to be taken.
Dear Anbalagan,
I have not understood what you said. Can you elaborate with relevant provisions? If I do not understand any post after my response, I just ignore it. But in this case, I thought of questioning you.
ANBALAGAN
From India, Mumbai
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When the number of contract workmen exceeds the approval of the Inspector of Factories, strictly speaking, it is to be informed to the IF. For the calculation of the number of employees, the employees entered in Form-1 are to be taken.
Dear Anbalagan,
I have not understood what you said. Can you elaborate with relevant provisions? If I do not understand any post after my response, I just ignore it. But in this case, I thought of questioning you.
ANBALAGAN
From India, Mumbai
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Dear Mr. Karunakaran,
Firstly, I am unable to understand what you want to know. As per my understanding, you want to know two things:
1. Engagement of Contract Labour
2. Canteen Facility
The answer is as follows:
1. Engagement of Contract Labour: For employing contract labour, P.E. needs to obtain the Certificate of Registration under the Contract Labour (R&A) Act, 1970 from the Registering Officer under the act. Once PE gets the RC, he can engage contract labour through contractors who are required to obtain a license from the licensing officer, i.e., ALC, DLC, if they intend to employ 20 or more contract labourers on any given day. If you wish to engage more contractors or contract labourers, you may do so, but any changes in the particulars of contract labour should be notified to the Registering Officer, i.e., DLC, ALC, within 30 days of the change. The Factory Inspector has no involvement in this process. Please bear in mind that the number of workers (regular + non-regular) should not exceed the licensed limit. If the number exceeds this limit, you must apply for an amendment to the factory license accordingly.
2. Canteen: Regarding the canteen, Mr. Anil Sharma has already provided clear details. You are required to provide canteen facilities to the workers.
Please refer to the Contract Labour (R&A) Act, 1970, where the number specified for providing canteen facilities is 100.
Thanks and regards,
Manvendra Singh
From Germany, Frankfurt
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Firstly, I am unable to understand what you want to know. As per my understanding, you want to know two things:
1. Engagement of Contract Labour
2. Canteen Facility
The answer is as follows:
1. Engagement of Contract Labour: For employing contract labour, P.E. needs to obtain the Certificate of Registration under the Contract Labour (R&A) Act, 1970 from the Registering Officer under the act. Once PE gets the RC, he can engage contract labour through contractors who are required to obtain a license from the licensing officer, i.e., ALC, DLC, if they intend to employ 20 or more contract labourers on any given day. If you wish to engage more contractors or contract labourers, you may do so, but any changes in the particulars of contract labour should be notified to the Registering Officer, i.e., DLC, ALC, within 30 days of the change. The Factory Inspector has no involvement in this process. Please bear in mind that the number of workers (regular + non-regular) should not exceed the licensed limit. If the number exceeds this limit, you must apply for an amendment to the factory license accordingly.
2. Canteen: Regarding the canteen, Mr. Anil Sharma has already provided clear details. You are required to provide canteen facilities to the workers.
Please refer to the Contract Labour (R&A) Act, 1970, where the number specified for providing canteen facilities is 100.
Thanks and regards,
Manvendra Singh
From Germany, Frankfurt
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Dear,
For additional work by your contract staff, you have to pay overtime payment as per the Contract Labour Act for hours worked beyond 8 hours per day (if restricted to 180 staff members). You can ask your contractor to increase the number of staff by providing a work order. After that, you have to issue Form V for the Contract Labour License with the contractor.
Canteen facility is mandatory as per the Contract Labour Act, and you can reimburse the canteen expenses from the contractor.
Regards,
Avish
From India, Delhi
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For additional work by your contract staff, you have to pay overtime payment as per the Contract Labour Act for hours worked beyond 8 hours per day (if restricted to 180 staff members). You can ask your contractor to increase the number of staff by providing a work order. After that, you have to issue Form V for the Contract Labour License with the contractor.
Canteen facility is mandatory as per the Contract Labour Act, and you can reimburse the canteen expenses from the contractor.
Regards,
Avish
From India, Delhi
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Dear Avish ji, Can you give relavant provisions to each of your point above?
From India, Mumbai
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From India, Mumbai
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Q1. I am working in a Pharma Company as Manager of HR and Administration. We have a company staff of around 200 employees. In addition to our regular staff, we also have contract labor. As the principal employer, we have obtained permission from the IF for 180 staff under the contract. If the limit is exceeded at times due to additional work requirements, is it necessary to increase the staff limit provided by the contractor from the IF? If so, would there be any violation for employing additional staff in such cases?
Answer: The employee strength of your company should not exceed the approved limit of the license issued by the IF. If it does, you will need to amend your factory license before increasing the employee count.
Q2. According to the Factory Act, a company must provide a canteen facility if the staff strength exceeds 250. Currently, our company has a staff strength of around 200, and we do not have a canteen facility. When considering the contract labor as well, the staff strength exceeds 250.
Answer: Anil Sharma has clearly explained the definition of a worker. To provide canteen facilities, you should also consider contract employees. For example, if you have 180 employees as regular staff and 70 from a contractor, your factory will fall under the provision requiring a canteen.
Note: I have corrected the spelling, grammar, and paragraph formatting as per the original content provided.
From India, Bangalore
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Answer: The employee strength of your company should not exceed the approved limit of the license issued by the IF. If it does, you will need to amend your factory license before increasing the employee count.
Q2. According to the Factory Act, a company must provide a canteen facility if the staff strength exceeds 250. Currently, our company has a staff strength of around 200, and we do not have a canteen facility. When considering the contract labor as well, the staff strength exceeds 250.
Answer: Anil Sharma has clearly explained the definition of a worker. To provide canteen facilities, you should also consider contract employees. For example, if you have 180 employees as regular staff and 70 from a contractor, your factory will fall under the provision requiring a canteen.
Note: I have corrected the spelling, grammar, and paragraph formatting as per the original content provided.
From India, Bangalore
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