Focus on Govt legislation in Contract Staffing Industry[CSI]
Contract Staffing can be divided broadly into "Blue Collared " and 'white collared".
The Focus of Government on Labour Law Legislation rests with main Sector i.e Industry (Manufacturing).
In relation to Contract Staffing Legislation by Govt the impetus will be on Blue Collar .
So much cannot be expected catering to the needs of the Contract Staffing Industry on White Collar front.
CSI has to be satisfied and operate within the Existing laws
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
23Contract Staffing can be divided broadly into "Blue Collared " and 'white collared".
The Focus of Government on Labour Law Legislation rests with main Sector i.e Industry (Manufacturing).
In relation to Contract Staffing Legislation by Govt the impetus will be on Blue Collar .
So much cannot be expected catering to the needs of the Contract Staffing Industry on White Collar front.
CSI has to be satisfied and operate within the Existing laws
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
The Employees’ Provident Fund Organisation (EPFO) issued a circular on 18 October 2018 [attached] instructing regional provident offices to not coerce employers by way of prosecution in the light of the Supreme Court order on Aadhaar.
The circular is important because EPFO was asking employers to seed the Universal Account Number (UAN) of the employees with Aadhaar. UAN was launched in 2014 with the idea that every employee under the EPF will have only one account number which will be portable from one employer to another and the employee could ultimately de-link herself from the employee.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
The circular is important because EPFO was asking employers to seed the Universal Account Number (UAN) of the employees with Aadhaar. UAN was launched in 2014 with the idea that every employee under the EPF will have only one account number which will be portable from one employer to another and the employee could ultimately de-link herself from the employee.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Dear All ++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
From India, New Delhi
From India, New Delhi
Dear All ++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
From India, New Delhi
From India, New Delhi
Common question posed : Is the Indian legal system a complex web of too many labour laws-
One needs to understand India is a Union of States.
Labour is in the concurrent list meaning both Central Govt and State Govt can legislate.
Contract Staffing Entities are free to operate in both Central & State sphere irrespective of the No of laws.
The laws are for Industry and to benefit the Workers. So change in laws to suit the CSI i.e. Employers cannot be expected.
Only aggregation can be done which the present Govt is doing i.e. old wine in a new bottle.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
It is not at all possible to repeal any law .
One needs to understand India is a Union of States.
Labour is in the concurrent list meaning both Central Govt and State Govt can legislate.
Contract Staffing Entities are free to operate in both Central & State sphere irrespective of the No of laws.
The laws are for Industry and to benefit the Workers. So change in laws to suit the CSI i.e. Employers cannot be expected.
Only aggregation can be done which the present Govt is doing i.e. old wine in a new bottle.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
It is not at all possible to repeal any law .
Have Labour laws have lost touch with current business reality ?
Reality - Indian Labour Laws are changing with the times.
The AP ,Rajasthan & Maharashtra amendment on CLRA are remarkable piece of legislation.
Labour laws have to balance all stake holders-Management, Trade Unions(Contract Workers) and Government.
India is the best place for Contract Staffing.
If evolving laws come it will only benefit Labour and may backfire on the Industry. Cosmetic changes alone are possible.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Reality - Indian Labour Laws are changing with the times.
The AP ,Rajasthan & Maharashtra amendment on CLRA are remarkable piece of legislation.
Labour laws have to balance all stake holders-Management, Trade Unions(Contract Workers) and Government.
India is the best place for Contract Staffing.
If evolving laws come it will only benefit Labour and may backfire on the Industry. Cosmetic changes alone are possible.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Distribution of the Legislative power on Labour between the Central Government and State Government
Union List-(Central Government)
Entry No. 55
Regulation of labour and safety in mines and oil fields
Entry No. 61
Industrial disputes concerning Union employees
Entry No. 65
Union agencies and institutions for “… vocational … training …”
Concurrent List-(Central as well as State Government)
Entry No. 22
Trade unions, industrial and labour disputes
Entry No. 23
Social security and insurance, employment and unemployment
Entry No. 24
Welfare of labour including conditions of work, provident funds, employers’ invalidity, and old-age pension and maternity benefits
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Union List-(Central Government)
Entry No. 55
Regulation of labour and safety in mines and oil fields
Entry No. 61
Industrial disputes concerning Union employees
Entry No. 65
Union agencies and institutions for “… vocational … training …”
Concurrent List-(Central as well as State Government)
Entry No. 22
Trade unions, industrial and labour disputes
Entry No. 23
Social security and insurance, employment and unemployment
Entry No. 24
Welfare of labour including conditions of work, provident funds, employers’ invalidity, and old-age pension and maternity benefits
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Functions of the Labour Department of Central and States
To implement Central and State labour laws and employment laws for ensuring basic statutory working conditions and labour standards.
To protect the interests of workers, both in organized and unorganized sectors and to maintain industrial peace and harmony.
To Ensure wages, safety, welfare, working hours, weekly & other holidays, leave etc. for workers.
To eliminate employment of all forms of child labour and rehabilitation of those released from work
To promote the welfare and social security of workers by the implementation of schemes.
To provide social security to the injured workmen and maternity benefit to the women workers.
To provide for registration and Licensing of Establishments and collection of labour welfare fund.
To provide for registration of trade union and unorganized sector.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
To implement Central and State labour laws and employment laws for ensuring basic statutory working conditions and labour standards.
To protect the interests of workers, both in organized and unorganized sectors and to maintain industrial peace and harmony.
To Ensure wages, safety, welfare, working hours, weekly & other holidays, leave etc. for workers.
To eliminate employment of all forms of child labour and rehabilitation of those released from work
To promote the welfare and social security of workers by the implementation of schemes.
To provide social security to the injured workmen and maternity benefit to the women workers.
To provide for registration and Licensing of Establishments and collection of labour welfare fund.
To provide for registration of trade union and unorganized sector.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Have Labour laws have failed to adjust to recent labour market developments
Some of the important changes that have taken place in the Indian labour market as a result of the changes in the economic and business scenario are: need to quickly adjust workforce to transient, seasonal or structural demand volatility, both in terms of numbers and composition.
Mechanism to address such transitory needs as in the case of temporary unavailability of internal staff without any loss in productivity, need to focus on core activities and need for skilled labour.
However, identification of skilled manpower, ensuring a match with company needs and retention of staff is never an easy job, and this is further compounded by the short supply of such skilled labour and high attrition rates experienced recently.
These features of the emerging business scenario have played a pivotal role in the development of a new segment in the labour market – the flexi staffing industry.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
Some of the important changes that have taken place in the Indian labour market as a result of the changes in the economic and business scenario are: need to quickly adjust workforce to transient, seasonal or structural demand volatility, both in terms of numbers and composition.
Mechanism to address such transitory needs as in the case of temporary unavailability of internal staff without any loss in productivity, need to focus on core activities and need for skilled labour.
However, identification of skilled manpower, ensuring a match with company needs and retention of staff is never an easy job, and this is further compounded by the short supply of such skilled labour and high attrition rates experienced recently.
These features of the emerging business scenario have played a pivotal role in the development of a new segment in the labour market – the flexi staffing industry.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
National Company Law Tribunal- Mumbai Bench (NCLT ) by in a land mark Judgment dated September 12, 2018 in the matter of Precision Fasteners Ltd has held that provident fund dues to Company’s workmen are excluded from the liquidation assets enabling the workmen/ employees to realize their savings as well as the employer’s contributions as a part of their fundamental right to life while the right of the creditors is merely a property right. Therefore, the dues in respect of provident/ pension/ gratuity shall not be considered as liquidation asset to be made the provisions of the Insolvency and Bankruptcy Code, 2016.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164
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LEGAL COMPLIANCES.doc
Legal COMPLIANCEs and DUE dates.xls