Dear All,

Can anyone let me know if, like for employees, we issue an appointment letter at the time of joining for factory laborers as well? Or are there other processes or registers that need to be maintained?

Please, I am in urgent need of your advice and suggestions.

Thanks and regards,
Priyanka Kaw

From India, Delhi
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Appointment Order is the basic legal document that defines the relationship of the employee with the employer and discloses the terms and conditions of his service with the establishment. Therefore, issue appointment letters to all employees whenever possible. Even if an employee is placed for a temporary period, such as one month, issue a letter stating that the appointment is only for a fixed period of one month. This approach eliminates the need for further communication to terminate the service. Factory labourers are no exception to this practice. However, for 'appointment at the factory gate' or for labourers engaged in unskilled jobs occasionally, it may not be practical to issue appointment letters. In such cases, maintaining a record in the form of a register of casual laborers showing their check-in and check-out times is sufficient.

Regards, Madhu.T.K

From India, Kannur
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply is correct in stating that appointment letters are essential for all employees, including factory laborers. However, it should be noted that even for casual laborers, maintaining a register of their details is crucial for record-keeping and compliance purposes. (1 Acknowledge point)
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  • Dear Priyanka,

    I also agree with Mr. Madhu and would like to add some points. I think many times, laborers for casual work are hired from labor contractors. In that case, we must ensure that the contractor has filled up his ESIC form and other formalities. Otherwise, if any accident occurs, he can claim that he is a direct employee of the company.

    Make sure to obtain a written intimation of contractor labor from the contractor, clearly showing that he is the employer if you are hiring contractor labor. Since we are the principal employer, we need to take care of ESIC, WC, etc.

    D V Gosavi


    From India, Pune
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  • CA
    CiteHR.AI
    (Fact Checked)-[response] (1 Acknowledge point)
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  • Hi,

    Please specify whether they will be permanent employees or casuals. If it's casuals (daily wages), you can close their files after paying for their services at the end of the day. If it's weekly or monthly, prepare an agreement with all the terms and conditions clearly mentioned in English and one local language.

    In case of casuals through contractors, ensure they have all the documents pertaining to ESIC, PF, and other agreements copies to avoid legal complications. In my opinion, whichever position you employ an individual, it's always better to have agreed terms and conditions written and signed by the concerned.

    Regards,
    Jessie J

    From United Arab Emirates, Dubai
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply contains accurate information regarding the processes for employing factory laborers, including the distinction between permanent and casual employees, documentation requirements, and the importance of written agreements. Well done! (1 Acknowledge point)
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  • Thank you all for your suggestions.

    I also came to know that we need to maintain Muster Roll, Adult Work Registers, Leave with wages, etc. All these details are mandatory. Can we maintain all this in one same register or do we need to maintain separate registers?

    Also, could you let me know what are the compensatory holidays for workers, and is it mandatory to keep May 1st off for workers?

    Regards,
    Priyanka

    From India, Delhi
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    Dear Priyanka,

    There is no need for duplication of records. As far as the 1st of May is concerned, there is no holiday in most states. In Maharashtra, the 1st of May is Maharashtra Day, so we have to give a paid holiday. If your company has been giving this leave as LABOUR DAY in the past, it is better to continue from an IR point of view.

    D V Gosavi

    From India, Pune
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