Dear Folks
Have few queries about contract labour. Would like to have answers for those. Your quick response will be highly appreciated.
1. What are the differences between contract labour and outsourcing? Which is better option and why?
2. Is Contract labour Act applicable when jobs and services are outsourced?
3. What are the non-perennial and non-permanent jobs which can be assigned to contract labour?
4. Can we have permanent employees and contract labour working side by side on the same job?
5. What is the best ratio between permanent and contact labour? Can we engage 100% contract labour?
6. Can we have different wages and other terms for permanent employees and contract labour doing the same or similar job?
7. Can we transfer casuals/temporaries on the rolls of contractor?
8. Application and implication of P.F., ESI, Bonus, Gratuity and other statutory benefits to contract labour, casuals etc. and how to ensure compliance?
9. How to ensure submission of PF and ESI returns by the contractor?
10. How to get a new PF code number from PF authorities?
11. Security, Housekeeping, Drivers, Canteen, Horticulture etc. on contract/voucher payment. Sustainability? Is there any Case laws?
12. Liability of principal employer for injury, illness, disability, death etc.
13. Can and should the employer have a say in the number and selection of contract labour?
14. Who is to take disciplinary action against contract labour? Under what rules? Are standing orders applicable to contract labour?
15. Is it necessary and desirable to issue employment card/gate pass/identity card to contract labour? If so under whose authority/signature? Safeguards?
16. Each contractor engaging less than 20 but together they engage more than 20. Will the provisions of registration, licensing and other statutory provisions apply?
17. Statutory requirements and precautions in awarding contract for safeguarding managements interests.
18. If License not renewed but contractor continues to work – legal implications including permanency?
19. Contractor changing but contract labour not changing – implications, precautions required?
20. Contract terminated due to unsatisfactory performance of the contractor, contractor leaves – can contract labour claim permanency? What should employer do?
21. Contract labour terminated through a settlement. Should principal employer be a party?
22. When contractor runs away leaving his workforce and supervisor, how to manage work and labour and who is to handle pending conciliation reference?
23. What to do if the contractor refuses to pay the labour?
24. What are the action required to be taken by the management after abolition of contract labour?
25. Can management challenge the decision of appropriate Govt. regarding abolition of jobs?
26. Should contractor and contract labour be rotated? Why? How often?
27. How to reduce number of contract labour?
28. Contract labour demanding permanency – How to handle?
29. Contract labour demanding similar benefits as permanent employees. Is the claim legally valid?
30. Is Pension Scheme also applicable to contract labour?
31. Is Minimum Wages Act applicable to contract labour?
32. What is the liability of Principal Employer in the case of sub-contracting?
33. What are the implications of Supreme Court Judgment in the SAIL case reversing earlier Air India Judgment?
34. Implications and liabilities of temporary/casual/probationer employees/trainees? Is there any maximum duration?
35. What is the relevance of 180/240 days & what are the Implication of breaks?
Regards
Anthony
From India, Madras
Have few queries about contract labour. Would like to have answers for those. Your quick response will be highly appreciated.
1. What are the differences between contract labour and outsourcing? Which is better option and why?
2. Is Contract labour Act applicable when jobs and services are outsourced?
3. What are the non-perennial and non-permanent jobs which can be assigned to contract labour?
4. Can we have permanent employees and contract labour working side by side on the same job?
5. What is the best ratio between permanent and contact labour? Can we engage 100% contract labour?
6. Can we have different wages and other terms for permanent employees and contract labour doing the same or similar job?
7. Can we transfer casuals/temporaries on the rolls of contractor?
8. Application and implication of P.F., ESI, Bonus, Gratuity and other statutory benefits to contract labour, casuals etc. and how to ensure compliance?
9. How to ensure submission of PF and ESI returns by the contractor?
10. How to get a new PF code number from PF authorities?
11. Security, Housekeeping, Drivers, Canteen, Horticulture etc. on contract/voucher payment. Sustainability? Is there any Case laws?
12. Liability of principal employer for injury, illness, disability, death etc.
13. Can and should the employer have a say in the number and selection of contract labour?
14. Who is to take disciplinary action against contract labour? Under what rules? Are standing orders applicable to contract labour?
15. Is it necessary and desirable to issue employment card/gate pass/identity card to contract labour? If so under whose authority/signature? Safeguards?
16. Each contractor engaging less than 20 but together they engage more than 20. Will the provisions of registration, licensing and other statutory provisions apply?
17. Statutory requirements and precautions in awarding contract for safeguarding managements interests.
18. If License not renewed but contractor continues to work – legal implications including permanency?
19. Contractor changing but contract labour not changing – implications, precautions required?
20. Contract terminated due to unsatisfactory performance of the contractor, contractor leaves – can contract labour claim permanency? What should employer do?
21. Contract labour terminated through a settlement. Should principal employer be a party?
22. When contractor runs away leaving his workforce and supervisor, how to manage work and labour and who is to handle pending conciliation reference?
23. What to do if the contractor refuses to pay the labour?
24. What are the action required to be taken by the management after abolition of contract labour?
25. Can management challenge the decision of appropriate Govt. regarding abolition of jobs?
26. Should contractor and contract labour be rotated? Why? How often?
27. How to reduce number of contract labour?
28. Contract labour demanding permanency – How to handle?
29. Contract labour demanding similar benefits as permanent employees. Is the claim legally valid?
30. Is Pension Scheme also applicable to contract labour?
31. Is Minimum Wages Act applicable to contract labour?
32. What is the liability of Principal Employer in the case of sub-contracting?
33. What are the implications of Supreme Court Judgment in the SAIL case reversing earlier Air India Judgment?
34. Implications and liabilities of temporary/casual/probationer employees/trainees? Is there any maximum duration?
35. What is the relevance of 180/240 days & what are the Implication of breaks?
Regards
Anthony
From India, Madras
Oooppssssssssss! For a moment I felt like I’m about to write my Labour Law paper. :) :) :) Well, would surely get back to you with answers to some of the questions. Swapnil
From India, Pune
22From India, Pune
Dear Mr. Swapnil
Please help me in below matter on contract Labour..
We are the Housekeeping Service Provider for one of Leading MNC in Bangalore, Pune, Hyderabad & Chennai, can you help me that we have take Shops act Licence or Contract Labor Licences,
or we have to wait tell the principle Employer gives us Form 5,
and as Service provider what all the Register we have to maintain from our end.
Waiting for your response
Thanks
jaheer
From India, Bangalore
Please help me in below matter on contract Labour..
We are the Housekeeping Service Provider for one of Leading MNC in Bangalore, Pune, Hyderabad & Chennai, can you help me that we have take Shops act Licence or Contract Labor Licences,
or we have to wait tell the principle Employer gives us Form 5,
and as Service provider what all the Register we have to maintain from our end.
Waiting for your response
Thanks
jaheer
From India, Bangalore
Dear Jaheer,
Since you are providing services to an MNC in multiple locations it is advised you should obtain Shop act license. Then you can get form 5 from PE to obtain Contract Labour License. It will not only be helpful for statutory commpliance but also for other transactions and growth of your business.
Registers to be maintained:
Maintenance of registers and records for establishment governed by Payment of Wages Act, Minimum Wages Act
1. muster Roll,
2. register of Wages,
3. register of Deduction,
4. register of overtime,
5. register of fines,
6. register of advances etc
Maintenance of registers and records for establishment which are not governed by Payment of Wages Act, Minimum Wages Act
1. muster-roll-cum-wage register
2. attendance card cum wage slip
Feel free to contact me if you require any assistance.
Regards,
Swapnil
From India, Pune
Since you are providing services to an MNC in multiple locations it is advised you should obtain Shop act license. Then you can get form 5 from PE to obtain Contract Labour License. It will not only be helpful for statutory commpliance but also for other transactions and growth of your business.
Registers to be maintained:
Maintenance of registers and records for establishment governed by Payment of Wages Act, Minimum Wages Act
1. muster Roll,
2. register of Wages,
3. register of Deduction,
4. register of overtime,
5. register of fines,
6. register of advances etc
Maintenance of registers and records for establishment which are not governed by Payment of Wages Act, Minimum Wages Act
1. muster-roll-cum-wage register
2. attendance card cum wage slip
Feel free to contact me if you require any assistance.
Regards,
Swapnil
From India, Pune
Dear Mr. Swapnil,
Thanks a lot for your reply, i have one more query.
as we have more than 20 Staff working in Each unit (5 Different Unit for Same MNC) & whether we have to wait till principle Employer give us FROM 5, or its our responsible to ask from him.
and for each different unit is it necessary to take different Form 5 or only one will work
Thanks
Jaheer
From India, Bangalore
Thanks a lot for your reply, i have one more query.
as we have more than 20 Staff working in Each unit (5 Different Unit for Same MNC) & whether we have to wait till principle Employer give us FROM 5, or its our responsible to ask from him.
and for each different unit is it necessary to take different Form 5 or only one will work
Thanks
Jaheer
From India, Bangalore
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Contract Labour-queries. doc
Queries on contract labour.pdf