Dear Colleagues, Can a contract worker under a Contractor at one site frequently be sent for work at another site of the same principal employer?
From India
From India
Dear Colleague,
If both are separate entities/ separate establishments then the answer is NO.
If both are different establishment in terms of Companies Act, Factories Act, PF, ESI and so on, definitely it is not legally correct. The license issued to the Contractor is Establishment specific with address of the establishment. The PF/ ESI may be covered with the Contractor's code if the contractor is having the code. But in case of any accidents there will be lot of complexities. As far as Contract Labour License is concerned/ Registration is concerned it is a violation and the RC and License will be terminated by authority. It is better go for separate contractor or include this contractor in the RC of that establishment also and ask him to take a separate license. This is under the present Law.
Once the proposed code on OSH&WC is implemented, then the contractor can apply One license for multiple locations but we need to wait until implementation of the code.
From India, Chennai
309If both are separate entities/ separate establishments then the answer is NO.
If both are different establishment in terms of Companies Act, Factories Act, PF, ESI and so on, definitely it is not legally correct. The license issued to the Contractor is Establishment specific with address of the establishment. The PF/ ESI may be covered with the Contractor's code if the contractor is having the code. But in case of any accidents there will be lot of complexities. As far as Contract Labour License is concerned/ Registration is concerned it is a violation and the RC and License will be terminated by authority. It is better go for separate contractor or include this contractor in the RC of that establishment also and ask him to take a separate license. This is under the present Law.
Once the proposed code on OSH&WC is implemented, then the contractor can apply One license for multiple locations but we need to wait until implementation of the code.
From India, Chennai
To my opinion there is no harm to engage the contract labour at any place so long the employee is under the same contractor's payroll. At the end of the month contractor will process his wages, PF, ESI etc. and pay to the contract labour.
There are contractors who are engaged in plumbing job, carpenter job, Job orders of big houses ( Railway jobs from big contractor) etc. where the contractors are getting orders from different organizations and the work is done through his employees in different organizations or at his premises in different days within a month. There are several PE but the contractor is common and contract workers are common. In this arrangement, it is the responsibility of the contractor to maintain proper records and take care of his employees.The contractor must have own PF, ESIC codes for compliance.
The above arrangement is reality throughout the India especially those who are engaged in specialized jobs - robotic gunning( Blast Furnaces etc.), special repair and maintenance etc.etc.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
www.usdhrs.in
From India, New Delhi
There are contractors who are engaged in plumbing job, carpenter job, Job orders of big houses ( Railway jobs from big contractor) etc. where the contractors are getting orders from different organizations and the work is done through his employees in different organizations or at his premises in different days within a month. There are several PE but the contractor is common and contract workers are common. In this arrangement, it is the responsibility of the contractor to maintain proper records and take care of his employees.The contractor must have own PF, ESIC codes for compliance.
The above arrangement is reality throughout the India especially those who are engaged in specialized jobs - robotic gunning( Blast Furnaces etc.), special repair and maintenance etc.etc.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
www.usdhrs.in
From India, New Delhi
I agree with the view of Mr.S.K.B. IF we carefully analyze the historical background leading to the passing of the CLRA,1970, we can understand that though statutory abolition of indirect labor in perennial nature of jobs is the primary objective of the Act, it is not possible to do so at a single stroke for the system of contract labor has already deep rooted ubiquitously in the industries. That's why regulatory aspect was introduced as an initial measure in the Act. Though exemptions are specified in the Act pinpointing industrial establishments basing on their seasonality of functioning and the process or works on their nature of intermittence, the term ' Core activity ' has not been defined in the Act with the exception of some State Rules like Andhra Pradesh. Even the definition of core activity in the yet to be enforced OSHWC CODE,2020 is not intended for total prohibition rather providing for parity in working conditions to contract labor on par with the regular workmen of the establishment only if simultaneously engaged on core activities due to sudden increase in work loads. That's why the Registration Certificate and the Contractor's License given under the Act are only work-specific and number-specific and not name-specific in respect of the contract labor engaged therein.
Therefore, my submission in the light of the above reasons, would be that there is no legal bar on the rotation of the contract labor by the contractor among the different contract works whether in the same PE's establishment or elsewhere.
The question of basis for calculation of wages, leave benefits and computation of terminal benefits to contract labor is different for the contractor's entity is a distinct and separate establishment for such purposes.
From India, Salem
Therefore, my submission in the light of the above reasons, would be that there is no legal bar on the rotation of the contract labor by the contractor among the different contract works whether in the same PE's establishment or elsewhere.
The question of basis for calculation of wages, leave benefits and computation of terminal benefits to contract labor is different for the contractor's entity is a distinct and separate establishment for such purposes.
From India, Salem
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