Section 30(2) of the Contract Labour (Regulation and Abolition) Act, 1970, allows an agreement to be made with the Principal Employer or the Contractor. In this case, the contract labor union has submitted a charter of demands to the Principal Employer seeking a wage increase, which has not yet been discussed. To maintain industrial peace, the contractor is prepared to settle with the workers, and the Principal Employer has agreed to revise the work order terms to cover the financial impact of the settlement.
My question is: Which approach is more beneficial—to formalize this agreement under Section 30(2) of the CLRA or a settlement under the provisions of the Industrial Disputes Act? What are the key differences between these options?
Regards,
From India, Delhi
10My question is: Which approach is more beneficial—to formalize this agreement under Section 30(2) of the CLRA or a settlement under the provisions of the Industrial Disputes Act? What are the key differences between these options?
Regards,
From India, Delhi
Hi
If the contract workers are part of any union and the COD was given by the said union on behalf of the CL, it is better that an agreement be entered in to between the contractor and the said union under Sec.18 (1) of the ID Act. However, the contractor will privately have a discussion with the Management about the percentage of hike. In the absence of any union, the terms of the Work Order can be revised and the contractor can inform all the CLs informally that their wages are revised.
Sec. 30 (2) of the CLRA Act says that if there is any agreement with the contractor which provides for better benefit that that is given in the Act, the said better benefit shall be given to the workers.
In any way, the Principal Employer need not enter into any agreement with the CLs or with their Union and the agreement should be between the contractor and the CL or their union. If there is no union, no need to enter into an agreement and simply revise the Work Order and communicate to all concerned through the contractor.
From India, Chennai
If the contract workers are part of any union and the COD was given by the said union on behalf of the CL, it is better that an agreement be entered in to between the contractor and the said union under Sec.18 (1) of the ID Act. However, the contractor will privately have a discussion with the Management about the percentage of hike. In the absence of any union, the terms of the Work Order can be revised and the contractor can inform all the CLs informally that their wages are revised.
Sec. 30 (2) of the CLRA Act says that if there is any agreement with the contractor which provides for better benefit that that is given in the Act, the said better benefit shall be given to the workers.
In any way, the Principal Employer need not enter into any agreement with the CLs or with their Union and the agreement should be between the contractor and the CL or their union. If there is no union, no need to enter into an agreement and simply revise the Work Order and communicate to all concerned through the contractor.
From India, Chennai
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