Dear All, Can we hire labor through a contractor for the regular work which is mentioned in L.O.A? If not then what is the procedure or solution of it. I request all the experts to kindly help.
From India, Delhi
From India, Delhi
363
I also would like to join the discussion with our learned friend Mr.Khola because of the practical importance underlying the query. With reference to nature and duration of performance, generally,the overall activities of any business/industrial organization can be broadly classified into two viz., core/regular or incidental activities. Again this classification would certainly escape precision as it is always possible a core activity of a particular organization can be an incidental one of another and vice versa because of the complexity of the activities involved in any modern industry be it manufacturing or service. To describe this phenomenon in other words, every activity, irrespective of its nature, undertaken by any establishment to achieve the object for which the establishment is set up is the activity of the establishment. That's why the terms "core/main/primary/regular activity" and "incidental/ancillary activity" do not find place in the definition clauses of the CLRA Act,1970 [but for the amendment u/s 2(dd) by the AndraPradesh State]. Therefore, the legal position, as rightly observed by Mr.Khola, is that contract labor can be engaged by the principal employer in any activity which has not been prohibited u/s 10 of the Act by the appropriate Government.
However, in view of the bond created by the permanency of tenure between the employer and employees and the similarity of conditions of employment between regular employees and contract labor imposed by the restrictive provisions of the CLRA Act,1970 and case laws, the only advantage of contract labor remains is that of the ease of hire and fire under market-driven economic activities. Hence keeping the workmen as contract labor over a period of years together under "sham" or "umbrella contracts" by changing the contractors would not only be an unfair labor practice but also a valid reason for the demand of their absorption by means of industrial adjudication in the long run.
When any employer is unable to assess the requirement of regular labor exactly, the better alternative, in my opinion, is to engage some section of employees on Fixed Term Contract Employment basis in tune with the recently amended provisions of the Industrial Employment ( Standing Orders ) Rules.
From India, Salem
However, in view of the bond created by the permanency of tenure between the employer and employees and the similarity of conditions of employment between regular employees and contract labor imposed by the restrictive provisions of the CLRA Act,1970 and case laws, the only advantage of contract labor remains is that of the ease of hire and fire under market-driven economic activities. Hence keeping the workmen as contract labor over a period of years together under "sham" or "umbrella contracts" by changing the contractors would not only be an unfair labor practice but also a valid reason for the demand of their absorption by means of industrial adjudication in the long run.
When any employer is unable to assess the requirement of regular labor exactly, the better alternative, in my opinion, is to engage some section of employees on Fixed Term Contract Employment basis in tune with the recently amended provisions of the Industrial Employment ( Standing Orders ) Rules.
From India, Salem
The test is very simple.If a Form V is issued by the PE and the Contractor is able to get a CLRA license then the job can be easily outsourced. Form V is not issued for 'core' jobs so no CLRA License will be issued.So the thumb rule propounded by Mr RN Khola and seconded by Mr Umakannthan that as long as the activity is not prohibited Contract labour can be engaged will hold the field.
V.Sounder Rajan
Advocate -Chennai
V.Sounder Rajan
Advocate -Chennai
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Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc