Want to know about contractual labour in manufacturing company what are the thing to be done by HR I want to know in detail about contractual labor
From India, undefined
From India, undefined
First select good contractors who have PF, ESIC Code. Check the compliance status of the contractor. Check the different registers, records are required to maintain as per different acts - CLRA, Factory, PF, ESIC, PTAX, GST, Bonus, Gratuity, Minimum wages etc.
When the contract labor will be engaged at your premises ask the contractor to organize pre joining medical test and the contract labors must have ESIC coverage. Make an agreement mentioning actual cost to be paid to contract labor - Monthly gross, Employer's portion of PF & ESIC + Contractor's service charge % wise or fix amount per employee per month + GST. After deducting TDS payment to be made to contractor.
IN case of Bonus, Leave encashment , Gratuity or any other payment if determined by PE as and when occur , raised another invoice with agreed service charge.
The above arrangement will be helpful to maintain transparency.
Do not forget to register the name of contractors in your registration certificate and ask the contractor to obtain labor license.
Rest apply common sense to resolve issues as and when occur.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
336When the contract labor will be engaged at your premises ask the contractor to organize pre joining medical test and the contract labors must have ESIC coverage. Make an agreement mentioning actual cost to be paid to contract labor - Monthly gross, Employer's portion of PF & ESIC + Contractor's service charge % wise or fix amount per employee per month + GST. After deducting TDS payment to be made to contractor.
IN case of Bonus, Leave encashment , Gratuity or any other payment if determined by PE as and when occur , raised another invoice with agreed service charge.
The above arrangement will be helpful to maintain transparency.
Do not forget to register the name of contractors in your registration certificate and ask the contractor to obtain labor license.
Rest apply common sense to resolve issues as and when occur.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
due to industrial issue please keep in mind that contractor labour should be treat separate, all the forms regarding their leave, OT , gate pass etc. should by not entertain by company employees and with company logo. for this you have to appoint a contractor supervisor who should be responsible for their respective employees. I mean to say there is no any documents which can prove the relation between the company and employee.
From India, Rudarpur
From India, Rudarpur
HI Saritha Kamble,
Mr,S K Bandyopadhyay ( WB, Howrah),CEO-USD HR Solutions has given a vivid reply to your query.
I would like to supplement that the wordings and content of the agreement are of paramonut importance in engaging the contrctor to supply and manage the contrct workforce. All neccesary safeguards as regards statutory compliances , terminations clauses for neglignece and deficient services and poor attendance by contract workmen,are well laid down in the agreement.
Please ensre that the contract wokrmen are not required to work on core and perennial jobs as a prudence to avoid IR issues to be fomented by Unions if any, operating in the plant
P.Senthilkumar
IR Consultnat , Chennai
9884009193
From India, Chennai
Mr,S K Bandyopadhyay ( WB, Howrah),CEO-USD HR Solutions has given a vivid reply to your query.
I would like to supplement that the wordings and content of the agreement are of paramonut importance in engaging the contrctor to supply and manage the contrct workforce. All neccesary safeguards as regards statutory compliances , terminations clauses for neglignece and deficient services and poor attendance by contract workmen,are well laid down in the agreement.
Please ensre that the contract wokrmen are not required to work on core and perennial jobs as a prudence to avoid IR issues to be fomented by Unions if any, operating in the plant
P.Senthilkumar
IR Consultnat , Chennai
9884009193
From India, Chennai
Hi,
Please note that the Act was passed to prevent the exploitation of contract labour and also to introduce better conditions of work. The Act provides for regulation and abolition of contract labour. The underlying policy of the Act is to abolish contract labour, wherever possible and practicable, and where it cannot be abolished altogether, the policy of the Act is that the working conditions of the contract labour should be so regulated as to ensure payment of wages and provision of essential amenities. That is why the Act provides for regulated conditions of work and contemplates progressive abolition to the extent contemplated by Section 10 of the Act. Section 10 of the Act deals with abolition while the rest of the Act deals mainly with regulation. The dominant idea of Section 10 of the Act is to find out whether contract labour is necessary for the industry, trade, business, manufacture or occupation which is carried on in the establishment.
P.Senthilkumar
IR Consultant, Chennai
9884009193
From India, Chennai
Please note that the Act was passed to prevent the exploitation of contract labour and also to introduce better conditions of work. The Act provides for regulation and abolition of contract labour. The underlying policy of the Act is to abolish contract labour, wherever possible and practicable, and where it cannot be abolished altogether, the policy of the Act is that the working conditions of the contract labour should be so regulated as to ensure payment of wages and provision of essential amenities. That is why the Act provides for regulated conditions of work and contemplates progressive abolition to the extent contemplated by Section 10 of the Act. Section 10 of the Act deals with abolition while the rest of the Act deals mainly with regulation. The dominant idea of Section 10 of the Act is to find out whether contract labour is necessary for the industry, trade, business, manufacture or occupation which is carried on in the establishment.
P.Senthilkumar
IR Consultant, Chennai
9884009193
From India, Chennai
I completely agree with Mr. P. Senthilkumar. The reality is absolutely different. Even Central Government, State Governments, Banks etc. along with many big private organizations including MNCs are engaging contractual labor in core as well as non core activities. There are organizations who even can not think to pay more than minimum wages of the State/Central (as applicable) years after years. If contractual labors raise their voice for increment, it is considered as misconduct.
There are employers who are trying to find loop holes in law to avoid gratuity
payment etc.
More over there are contractors who are also exploiting contract labors. Many PEs are not paying contractors on time and so on.
The net result of all above are the suffering of contract labors. Until mentality of PEs change and good quality contractors are engaged / proper training to existing contractors, there will not be change of existing situation by making only enactment of different laws.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
There are employers who are trying to find loop holes in law to avoid gratuity
payment etc.
More over there are contractors who are also exploiting contract labors. Many PEs are not paying contractors on time and so on.
The net result of all above are the suffering of contract labors. Until mentality of PEs change and good quality contractors are engaged / proper training to existing contractors, there will not be change of existing situation by making only enactment of different laws.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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