Respected All,
If employer have every year Contractual labour Agreement, and RC renewal every year.
Can Contractual employee( Workmen) claim for permanency to the company even they are on contractor roll.
Can Contractual workmens establish union in organisation even they on contractual roll. . What is legal remedy.
Regards
Shivaji
From India, Pune
1If employer have every year Contractual labour Agreement, and RC renewal every year.
Can Contractual employee( Workmen) claim for permanency to the company even they are on contractor roll.
Can Contractual workmens establish union in organisation even they on contractual roll. . What is legal remedy.
Regards
Shivaji
From India, Pune
There is no specific legal remedy. Contractual employees are forming union is not new in India. Regarding Permanency of job as per CLRA - in past some jobs are abolished and in certain cases court verdict was in favor of absorption.
To my opinion the contractual employees if engaged through contractor, let the contractor tackle the situation in consultation with PE. It will be better if PE is not directly involved in negotiation.
What will be legal merit it depends on specific case to case basis.
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
To my opinion the contractual employees if engaged through contractor, let the contractor tackle the situation in consultation with PE. It will be better if PE is not directly involved in negotiation.
What will be legal merit it depends on specific case to case basis.
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
Dear Shivaji,
If any such situation is arising in your organization then try to control it with immediate effect. discuss with that employees with saam daam dand bhed and try to divide workers and their approach, because Contracts with labour Unions can result in substantially higher wages and higher benefits and Labour Unions charge dues to pay the salaries of union leaders and workers during a strike.
I would suggest you to control and manage this situation with immediate effect and if required talk to distt officers/bodies to rejection of registration.
First Identify how many workers are involved and after confirmation of involvement Conduct a Verification process for those employees verify their educational background and if verification fails you can discharge the related employee with immediate effect.
If any such situation is arising in your organization then try to control it with immediate effect. discuss with that employees with saam daam dand bhed and try to divide workers and their approach, because Contracts with labour Unions can result in substantially higher wages and higher benefits and Labour Unions charge dues to pay the salaries of union leaders and workers during a strike.
I would suggest you to control and manage this situation with immediate effect and if required talk to distt officers/bodies to rejection of registration.
First Identify how many workers are involved and after confirmation of involvement Conduct a Verification process for those employees verify their educational background and if verification fails you can discharge the related employee with immediate effect.
Dear Shivaji,
The right to form association is a fundamental right under Article 19 (1)(c) of the Constitution of India. Besides, the definition of the term "trade union " u/s 2(h) of the Trade Unions Act,1926 does not qualify workmen/employees as regular, temporary or contract. Therefore, the contract labor can form their own trade union or any other trade union in the industry can admit contract labor as their members, if so permitted in their bye laws and represent them in industrial disputes involving their conditions of service.
The system of contract labor is an indirect employment arrangement involving three parties viz., the principal employer who engages a contractor under a contract for service, the contractor who actually employs his workmen and the contract labor who is bound to the contractor under a contract of service. Thus there is no employer-employee relationship between the principal employer and the contract labor engaged in his work. Therefore, contract labor cannot validly raise any dispute against the principal employer for their permanency, if the contract between the principal employer and the contractor is a genuine one.
From India, Salem
The right to form association is a fundamental right under Article 19 (1)(c) of the Constitution of India. Besides, the definition of the term "trade union " u/s 2(h) of the Trade Unions Act,1926 does not qualify workmen/employees as regular, temporary or contract. Therefore, the contract labor can form their own trade union or any other trade union in the industry can admit contract labor as their members, if so permitted in their bye laws and represent them in industrial disputes involving their conditions of service.
The system of contract labor is an indirect employment arrangement involving three parties viz., the principal employer who engages a contractor under a contract for service, the contractor who actually employs his workmen and the contract labor who is bound to the contractor under a contract of service. Thus there is no employer-employee relationship between the principal employer and the contract labor engaged in his work. Therefore, contract labor cannot validly raise any dispute against the principal employer for their permanency, if the contract between the principal employer and the contractor is a genuine one.
From India, Salem
I am not able to understand what sort of clarity Shivaji still needs.
Workers joining together and forming trade union and get it registered under the Trade Unions Act,1926 is a legal right emanating from the fundamental right under Article 19(1)(c) of our Constitution. Contract labor are not the lesser children of law to be prevented from exercising this right just because such a union would be against the interest of the employers.
Contract labor is an indirect form of labor in which a third party viz., the contractor comes into the play between the actual beneficiary viz, the principal employer and the contract labor who are denied the legal benefits and rights of the regular employees performing the same works. If the works required to be performed are incidental or special in nature, no harm in engaging contract labor on such works through contractor for the sake of delegation of effective supervision and control over the process and easy hire and fire as long as the work continues. But the ground reality is that even core activities are contracted out by way of outsourcing through third parties. Even though the ultimate beneficiary is the principal employer under this indirect employment system, the contract labor cannot stake any claim against the principal employer for there is no direct employer-employee relationship between the two just because of the presence of a third party viz., the contractor. That's why the enactment and enforcement of the Contract Labor ( Regulation and Abolition ) Act,1970. It is better that you should go through the " Statement of Objects and Reasons " of the said Act. After the advent of the so called LPG, the system of contract labor has become ubiquitous in almost all industries resulting in a paradigm shift in the pattern of employment including the Government departments. Even the CLRAA,1970 has been in force for the last 5 decades and despite of the certain regulatory measures introduced by the Act, experience shows that it remains a simple paper tiger to the extent that one can find almost 30% to 50% of contract labor in every industry. Various High Courts and the Supreme Court of India have tightened the noose so far by their liberal interpretation of the provisions of the CLRAA,1970 in several case laws. But, no industrial dispute against the principal employer would be maintainable regarding permanency of the contract labor by the efflux of time unless it is proved that the contract is a sham one is the ratio decidendi of the judicial pronouncements. Hence the tactics of changing the contractors while keeping the same set of contract labor has been adopted by the industries for the sake of easy hire and fire as the economy becomes more and more market driven. Even trade unions are also very skeptical about espousing cause of contract labor and the contract labor are also scared of losing their existing contractual employment.
From India, Salem
Workers joining together and forming trade union and get it registered under the Trade Unions Act,1926 is a legal right emanating from the fundamental right under Article 19(1)(c) of our Constitution. Contract labor are not the lesser children of law to be prevented from exercising this right just because such a union would be against the interest of the employers.
Contract labor is an indirect form of labor in which a third party viz., the contractor comes into the play between the actual beneficiary viz, the principal employer and the contract labor who are denied the legal benefits and rights of the regular employees performing the same works. If the works required to be performed are incidental or special in nature, no harm in engaging contract labor on such works through contractor for the sake of delegation of effective supervision and control over the process and easy hire and fire as long as the work continues. But the ground reality is that even core activities are contracted out by way of outsourcing through third parties. Even though the ultimate beneficiary is the principal employer under this indirect employment system, the contract labor cannot stake any claim against the principal employer for there is no direct employer-employee relationship between the two just because of the presence of a third party viz., the contractor. That's why the enactment and enforcement of the Contract Labor ( Regulation and Abolition ) Act,1970. It is better that you should go through the " Statement of Objects and Reasons " of the said Act. After the advent of the so called LPG, the system of contract labor has become ubiquitous in almost all industries resulting in a paradigm shift in the pattern of employment including the Government departments. Even the CLRAA,1970 has been in force for the last 5 decades and despite of the certain regulatory measures introduced by the Act, experience shows that it remains a simple paper tiger to the extent that one can find almost 30% to 50% of contract labor in every industry. Various High Courts and the Supreme Court of India have tightened the noose so far by their liberal interpretation of the provisions of the CLRAA,1970 in several case laws. But, no industrial dispute against the principal employer would be maintainable regarding permanency of the contract labor by the efflux of time unless it is proved that the contract is a sham one is the ratio decidendi of the judicial pronouncements. Hence the tactics of changing the contractors while keeping the same set of contract labor has been adopted by the industries for the sake of easy hire and fire as the economy becomes more and more market driven. Even trade unions are also very skeptical about espousing cause of contract labor and the contract labor are also scared of losing their existing contractual employment.
From India, Salem
Thank you very much Sir, Now I am more cleared on the subject. once again thanks for sharing valuable knowledge. Regards Shivaji
From India, Pune
From India, Pune
Further to what Mr Umakanthan has rightly described and explained the query in detail, I would also like to refer the Section 30(2) of the Contract Labour Act 1970 which reads as under :
“Nothing contained in this Act shall be construed as precluding any such contract labour from entering into an agreement with the principal employer or the contractor, as the case may be, for granting them rights or privileges in respect of any matter which are more favourable to them than those to which they would be entitled under this Act.”
There is general practice in the industries to sign LTS through the Unions of Contract Labour by the Contractors where the Principal Employer witnesses the settlement and indirectly owns the financial liabilities generated out of these settlements. Ultimately we have to run the Industry.
Regards,
Dr Kamlesh Agrawal
From India, Delhi
“Nothing contained in this Act shall be construed as precluding any such contract labour from entering into an agreement with the principal employer or the contractor, as the case may be, for granting them rights or privileges in respect of any matter which are more favourable to them than those to which they would be entitled under this Act.”
There is general practice in the industries to sign LTS through the Unions of Contract Labour by the Contractors where the Principal Employer witnesses the settlement and indirectly owns the financial liabilities generated out of these settlements. Ultimately we have to run the Industry.
Regards,
Dr Kamlesh Agrawal
From India, Delhi
Yes. As per the Trade Unions Act, 1926 and under the definition of "Workmen", all persons employed in trade or industry can establish unions, subject to provisions of act. The Act does not make any distinction between regular workmen and Contractual workmen.
But can not claim permanency as the relation between Employer and Contractual Workmen is of temporary basis, subject to registration/Licensing as per CLRA Act. If Principal employer dont have any registration in CLRA and employing contract labor without having registration, then the every worker working for principal employer is treated as worker of principal employer.
From India, Mumbai
But can not claim permanency as the relation between Employer and Contractual Workmen is of temporary basis, subject to registration/Licensing as per CLRA Act. If Principal employer dont have any registration in CLRA and employing contract labor without having registration, then the every worker working for principal employer is treated as worker of principal employer.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
THE KERALA RECOGNITION OF TRADE UNION RULES, 2011.pdf
Trade union.ppt