Hi
Overview of Indian Contract Staffing (Labour) Law –Part IV
In continuation of our Fourth Part it is noticed that somehow, the deployment of Contract Labour in India has been looked upon with an eye of distrust ,suspicion and a tool for exploitation of labour . Therefore, the abolition of the Contract Labour system had been under the consideration of the Government of India prior to 1970. In the second Five Year Plan, the Planning Commission had made certain recommendations to find out the problems of Contract Labour with progressive abolition of the system and wherever the abolition was not possible improvement of the service conditions of such Contract Labour. It must be borne in mind that the concept of “Welfare State” was edifice of the economic system until 1992 when the focus shifted to slow and steady Globalization. Under the concept of a Welfare State as enunciated in the Directive Principle of State Policy in the Constitution of India, it is the duty of the State to ensure a living wage and proper working conditions for the workers with full enjoyment of leisure ,social and cultural activities .Also it became the duty of the State to take steps to promote the participation of Labour in Management of Industrial Undertakings.
To trace the history prior to the enactment of the Contract Labour (Abolition and Regulation) Act 1970 leading to its enactment the following developments are note worthy:-
The 20th session of the Indian Labour Conference (1962) recommended legislative action to abolish the Contract labour system.
The Contract Labour (Regulations) Bill, 1964, was drafted and considered by the 22nd and 23rd sessions of the Standing Labour Committee (1964and 1965).
Keeping in view the opinions expressed by the interests concerned, the bill was suitably modified and was approved by the Cabinet on 22 June 1966.
The Bill was passed by Parliament on 19 August 1970 and received the assent of the President on 5 th September 1970
The preamble of the Act states that it was passed as an Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.
From the preamble of the act, it can be gathered that the object of the act is twin-fold. One being to regulate employment of Contract Labour in certain Establishment and secondly to provide for its abolition under special circumstances. In short, the Act permitted the deployment of Contract Labour for causal, temporary, and intermittent jobs and at the same time regulate it and also empowered the Government to abolish such Contract Labour in a specified industry wherever it deems fit necessary by issue of a notification. Therefore, the act by itself is permissive, regulatory and a prohibitory all put in one piece of legislation. It is self balancing in nature and a remarkable piece of legislation which has worked well for nearly 43 years since .In our next part we will go through the salutary features of the Contract Labour (Abolition and Regulation) Act 1970.
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23Overview of Indian Contract Staffing (Labour) Law –Part IV
In continuation of our Fourth Part it is noticed that somehow, the deployment of Contract Labour in India has been looked upon with an eye of distrust ,suspicion and a tool for exploitation of labour . Therefore, the abolition of the Contract Labour system had been under the consideration of the Government of India prior to 1970. In the second Five Year Plan, the Planning Commission had made certain recommendations to find out the problems of Contract Labour with progressive abolition of the system and wherever the abolition was not possible improvement of the service conditions of such Contract Labour. It must be borne in mind that the concept of “Welfare State” was edifice of the economic system until 1992 when the focus shifted to slow and steady Globalization. Under the concept of a Welfare State as enunciated in the Directive Principle of State Policy in the Constitution of India, it is the duty of the State to ensure a living wage and proper working conditions for the workers with full enjoyment of leisure ,social and cultural activities .Also it became the duty of the State to take steps to promote the participation of Labour in Management of Industrial Undertakings.
To trace the history prior to the enactment of the Contract Labour (Abolition and Regulation) Act 1970 leading to its enactment the following developments are note worthy:-
The 20th session of the Indian Labour Conference (1962) recommended legislative action to abolish the Contract labour system.
The Contract Labour (Regulations) Bill, 1964, was drafted and considered by the 22nd and 23rd sessions of the Standing Labour Committee (1964and 1965).
Keeping in view the opinions expressed by the interests concerned, the bill was suitably modified and was approved by the Cabinet on 22 June 1966.
The Bill was passed by Parliament on 19 August 1970 and received the assent of the President on 5 th September 1970
The preamble of the Act states that it was passed as an Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.
From the preamble of the act, it can be gathered that the object of the act is twin-fold. One being to regulate employment of Contract Labour in certain Establishment and secondly to provide for its abolition under special circumstances. In short, the Act permitted the deployment of Contract Labour for causal, temporary, and intermittent jobs and at the same time regulate it and also empowered the Government to abolish such Contract Labour in a specified industry wherever it deems fit necessary by issue of a notification. Therefore, the act by itself is permissive, regulatory and a prohibitory all put in one piece of legislation. It is self balancing in nature and a remarkable piece of legislation which has worked well for nearly 43 years since .In our next part we will go through the salutary features of the Contract Labour (Abolition and Regulation) Act 1970.
https://www.citehr.com/285737-legal-...stry-pg16.html
In the previous part we had highlighted the surrounding reasons and the chronology of the events that took place leading to the passing of the Contract Labour (Abolition and Regulation) Act 1970.
Post 1968 ,the legal scenario had changed .When in 1970 the Contract Labour (Abolition & Regulation Act was passed by Parliament all Outsourcing activities can be brought within the realm of the Act .For example the definition of
(i) “workman” means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person – (A) who is employed mainly in a managerial or administrative capacity;
The definition is so wide that it will include any contract employee or Temp employed in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward.
Additionally the following explanatory definition is also included :
(b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work-of:-an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer;
This is where the catch is .In case a Temp is employed as "contract labour" in or in connection with the work-of:-an establishment and when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. Even it be termed as a Service Level Agreement where the PE will feign ignorance of the Temp the Temp will be reckoned as a Contract worker.
The other definitions are also wide:-
(c) “contractor”, in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor;
Again here too the definition is wide .Whatever name you may call the Agreement the term "Contractor "in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment.
Similarly the definition of Principal Employer is also wide and linked to the head of that office or department :-
(g) “principal employer” means – (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,
(iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the supervision and control of the establishment.
Since the PE is linked to the term “establishment” one needs to see its definition :-
(e) “establishment” means – (i) any office or department of the Government or a local authority, or
(ii) any place where any industry, trade, business, manufacture or occupation is carried on;
Strikingly the definition of "establishment " is also all inclusive and means any place where any industry, trade, business, manufacture or occupation is carried on.
In our next part we shall explain the most important provision of the Act being Section 10 which is the prohibition of Contract Labour.
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Staffing & Recruiting Industry
https://www.citehr.com/285737-legal-...-industry.html
Post 1968 ,the legal scenario had changed .When in 1970 the Contract Labour (Abolition & Regulation Act was passed by Parliament all Outsourcing activities can be brought within the realm of the Act .For example the definition of
(i) “workman” means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person – (A) who is employed mainly in a managerial or administrative capacity;
The definition is so wide that it will include any contract employee or Temp employed in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward.
Additionally the following explanatory definition is also included :
(b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work-of:-an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer;
This is where the catch is .In case a Temp is employed as "contract labour" in or in connection with the work-of:-an establishment and when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. Even it be termed as a Service Level Agreement where the PE will feign ignorance of the Temp the Temp will be reckoned as a Contract worker.
The other definitions are also wide:-
(c) “contractor”, in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor;
Again here too the definition is wide .Whatever name you may call the Agreement the term "Contractor "in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment.
Similarly the definition of Principal Employer is also wide and linked to the head of that office or department :-
(g) “principal employer” means – (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,
(iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the supervision and control of the establishment.
Since the PE is linked to the term “establishment” one needs to see its definition :-
(e) “establishment” means – (i) any office or department of the Government or a local authority, or
(ii) any place where any industry, trade, business, manufacture or occupation is carried on;
Strikingly the definition of "establishment " is also all inclusive and means any place where any industry, trade, business, manufacture or occupation is carried on.
In our next part we shall explain the most important provision of the Act being Section 10 which is the prohibition of Contract Labour.
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Staffing & Recruiting Industry
https://www.citehr.com/285737-legal-...-industry.html
Inclusion of Arbitration Clause in Flexi Staffing and Recruiting Agreements.
The Credit Control Department of Flexi Staffing & Recruiting Industry may be facing the problem of chasing unpaid Invoices .
Further the Flexi Staffing & Recruiting Industry is burdened with the problem of following up payments from Clients who do not pay or forget to pay Invoices.Of course this has become a perennial issue for the Flexi Staffing & Recruiting Industry.
An avid follower of our posts has posed the simple question.How do we get over this problem?
Well there needs to be a solution for this as the very reward for the effort which each and every Recruitment Professional puts in getting the Business of recruitment, searching a competent person , selecting the person and on-boarding for the Client on their perm rolls .For the Staffing Industry it will be the same process with the additional job of pay-rolling month after month . In the Staffing Industry it will involve funding for the Temps CTC.
Therefore settlement of invoice/s being the fruits of the labour will be taken away if these unpaid Invoices may become Bad debts .
Perhaps this problem cropping up could be on account of the absence of protective clauses in the Staffing & Recruiting Agreement. Maybe you need to have a re-look at your Standard Templates.
One of the solution for this is to include an Arbitration clause in terms of the Indian Arbitration and Conciliation Act 1996.This will help the Industry to have some hold on the Client in recovering the dues.Well this is a first step in the right direction.
By including an Arbitration Clause in every Template you are indirectly protecting the Invoice in its settlement by the process of recovery by way of legal action .
The next logical question posed by any Professional in the Flexi Staffing & Recruiting Industry is to specify its advantages.
They can be crystallized like this:
1. It a Method of Alternate Dispute Redressal without the intervention of Courts .
2. It is fast ,quick and time Bound.
3. When there is default settlement of Invoice/s the Staffing or Recruiting Industry Entity without incurring heavy costs of Court Fee in the Normal process of recovery just needs to invoke the Clause and start the process of pursuing the claim before the Arbitrator.
4. As an interim measure even pending appointment of the Arbitrator the Recruiting and Staffing Professional can seek the Arbitration Courts help by requesting the Court to issue a direction to the Non –paying Client to provide security for the unpaid Invoice/s pending the Arbitration proceedings. This will ultimately protect the recovery process of outstanding Invoices.
The Recruiting and Staffing Industry should make a beginning to include this Arbitration Clause in every Contract,Agreement,MOU or in their Offer and acceptance letters if the clause is already not there in their Template.
This is critical for Business and reduces the risk and will aid in timely collection and recovery of dues.Of course the pitfalls of Arbitration process also looms large but the advantages outnumber them.
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Staffing & Recruiting Industry
https://www.citehr.com/285737-legal-...-industry.html
The Credit Control Department of Flexi Staffing & Recruiting Industry may be facing the problem of chasing unpaid Invoices .
Further the Flexi Staffing & Recruiting Industry is burdened with the problem of following up payments from Clients who do not pay or forget to pay Invoices.Of course this has become a perennial issue for the Flexi Staffing & Recruiting Industry.
An avid follower of our posts has posed the simple question.How do we get over this problem?
Well there needs to be a solution for this as the very reward for the effort which each and every Recruitment Professional puts in getting the Business of recruitment, searching a competent person , selecting the person and on-boarding for the Client on their perm rolls .For the Staffing Industry it will be the same process with the additional job of pay-rolling month after month . In the Staffing Industry it will involve funding for the Temps CTC.
Therefore settlement of invoice/s being the fruits of the labour will be taken away if these unpaid Invoices may become Bad debts .
Perhaps this problem cropping up could be on account of the absence of protective clauses in the Staffing & Recruiting Agreement. Maybe you need to have a re-look at your Standard Templates.
One of the solution for this is to include an Arbitration clause in terms of the Indian Arbitration and Conciliation Act 1996.This will help the Industry to have some hold on the Client in recovering the dues.Well this is a first step in the right direction.
By including an Arbitration Clause in every Template you are indirectly protecting the Invoice in its settlement by the process of recovery by way of legal action .
The next logical question posed by any Professional in the Flexi Staffing & Recruiting Industry is to specify its advantages.
They can be crystallized like this:
1. It a Method of Alternate Dispute Redressal without the intervention of Courts .
2. It is fast ,quick and time Bound.
3. When there is default settlement of Invoice/s the Staffing or Recruiting Industry Entity without incurring heavy costs of Court Fee in the Normal process of recovery just needs to invoke the Clause and start the process of pursuing the claim before the Arbitrator.
4. As an interim measure even pending appointment of the Arbitrator the Recruiting and Staffing Professional can seek the Arbitration Courts help by requesting the Court to issue a direction to the Non –paying Client to provide security for the unpaid Invoice/s pending the Arbitration proceedings. This will ultimately protect the recovery process of outstanding Invoices.
The Recruiting and Staffing Industry should make a beginning to include this Arbitration Clause in every Contract,Agreement,MOU or in their Offer and acceptance letters if the clause is already not there in their Template.
This is critical for Business and reduces the risk and will aid in timely collection and recovery of dues.Of course the pitfalls of Arbitration process also looms large but the advantages outnumber them.
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Staffing & Recruiting Industry
https://www.citehr.com/285737-legal-...-industry.html
Dear Staffing Industry Friends
This is the first part of the write up on the need to record " Contract Staff Misconduct."
Being part of the Temp Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
For the Contract Staffing Company the relationship stems out of the Fixed Term Contract .
Many Staffing Professionals have initiated a debate on this issue, and we had many difficult questions from each of them.
We thought some innovation for this controversial topic is required as we find substance in many of the legitimate questions raised by the Staffing Professionals pan India .
The concept of Temporary Employment has to be understood by the Contract Staffing Professional. Being a Fixed Term Contract with a provision for Notice and Notice Pay the Staffing Professional has to understand that Misconduct or Performance related situation/s situations of the Contract Staff can be handled easily and either of the following can be done without referring to the Misconduct :-
(i) Issue a Notice of termination by simply providing the Notice Period;
(ii) Issue a Termination letter by providing Notice Pay without any hesitation.
But in all cases of misconduct or performance related situation the Clients i.e the Principal Employer will not agree either for Notice Period or Notice Pay. They will just tell : Fire this guy !
Wherever the Client is considering termination of the Contract Staff on misconduct/ performance-related issue. The issue has to be viewed from two stand points:
(i) As per the conditions of Appointment letter
(ii) From the stand point of the shops and Establishments Act.
From the stand point of the Appointment letter Termination is possible only under the relevant clause provided in the Appointment letter .Such termination is a Termination simpliciter without attributing any performance on discipline related issue on the Contract Staff and this ensures a smooth exit for the Contract Staff as touching upon the Contract Staff conduct or discipline may amount to a stigma and the Contract Staff chances of future employment is spoiled. Also the risk of litigation or retaliation will loom large in the face of the Agency.
..To be continued .
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Contract Staffing & Recruiting Industry
This is the first part of the write up on the need to record " Contract Staff Misconduct."
Being part of the Temp Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
For the Contract Staffing Company the relationship stems out of the Fixed Term Contract .
Many Staffing Professionals have initiated a debate on this issue, and we had many difficult questions from each of them.
We thought some innovation for this controversial topic is required as we find substance in many of the legitimate questions raised by the Staffing Professionals pan India .
The concept of Temporary Employment has to be understood by the Contract Staffing Professional. Being a Fixed Term Contract with a provision for Notice and Notice Pay the Staffing Professional has to understand that Misconduct or Performance related situation/s situations of the Contract Staff can be handled easily and either of the following can be done without referring to the Misconduct :-
(i) Issue a Notice of termination by simply providing the Notice Period;
(ii) Issue a Termination letter by providing Notice Pay without any hesitation.
But in all cases of misconduct or performance related situation the Clients i.e the Principal Employer will not agree either for Notice Period or Notice Pay. They will just tell : Fire this guy !
Wherever the Client is considering termination of the Contract Staff on misconduct/ performance-related issue. The issue has to be viewed from two stand points:
(i) As per the conditions of Appointment letter
(ii) From the stand point of the shops and Establishments Act.
From the stand point of the Appointment letter Termination is possible only under the relevant clause provided in the Appointment letter .Such termination is a Termination simpliciter without attributing any performance on discipline related issue on the Contract Staff and this ensures a smooth exit for the Contract Staff as touching upon the Contract Staff conduct or discipline may amount to a stigma and the Contract Staff chances of future employment is spoiled. Also the risk of litigation or retaliation will loom large in the face of the Agency.
..To be continued .
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Legal Consultant for Indian Contract Staffing & Recruiting Industry
Hi..May i know the governing laws in India for contractual employees who are working with Govt sector. As these days, govt is doing hiring on contract basis, please let me know the laws applicable in this situation in case of govt sector. These employees are of experts in different domains like finance, materials management, procurement, HR etc.
Thanks..
From India, Chandigarh
Thanks..
From India, Chandigarh
Here what you are talking about is the Fix Term Employment on contract, in such cases, CLRA is not applicable. the employment shall be govern by the terms and condition of employment agreement with the individual.
Though in terms of benefit, the employee shall be entitled for all social security benefit like ESI, PF, Gratuity etc.
But its difficult to claim permanancy in such cases, as after the expiry of contract period employment automatically comes to an end. or if there is a stipulation in appointment letter to this effect."Like on hiring permanent employee the position became redendent.
Though in terms of benefit, the employee shall be entitled for all social security benefit like ESI, PF, Gratuity etc.
But its difficult to claim permanancy in such cases, as after the expiry of contract period employment automatically comes to an end. or if there is a stipulation in appointment letter to this effect."Like on hiring permanent employee the position became redendent.
Thanks..
Which kind of possibility for ESI and PF is there if employment is under a fixed term contract like one year and after the expiry of the year, the same contract is renewed without any break like ending on 30-09-14 and getting renewed on 01-10-14 in govt sector. Please favor for this.
Regards - KK
From India, Chandigarh
Which kind of possibility for ESI and PF is there if employment is under a fixed term contract like one year and after the expiry of the year, the same contract is renewed without any break like ending on 30-09-14 and getting renewed on 01-10-14 in govt sector. Please favor for this.
Regards - KK
From India, Chandigarh
Sub:- " Contract Staff Misconduct." –Part II
Being part of the Contract Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Contract Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
This is a continuation of the write up (Part I ) on the need to record " Contract Staff Misconduct."
In our earlier part we had pointed out the situations when the Contract Staffing Industry Clients wish to terminate Contract Staff on disciplinary and performance related issue.
For the Client they will just inform the SPOC of the Contract Staffing Industry Professional that this Contract Staff needs to be fired immediately .
Now for Contract Staffing Industry Professional he or she has to see it from the Legal perspective:-
For illustrative purposes from the Shops and Establishments Act under Section 30 of the Delhi Shops and Establishments Act, there are only two types of Termination.
The first type of Termination is termination with notice of 30 days and the other one is termination for misconduct wherein an opportunity is to be given to the Temp to explain his conduct.
What do Courts say on this !
But on this, Courts of Law have interpreted that “Termination for Misconduct on Performance related issue” can be done only after conducting a Domestic Enquiry. During the period of the enquiry Contract Staffing Industry entity has to pay the Contract Staff salary, 50% to 75% salary and continue the Contract Staff employment during the period of Enquiry as a via-media. For the Contract Staffing Industry Professional all this may look complicated.
How does the Contract Staffing Industry Professional take this !
The Branches of the Contract Staffing Entities have to adhere to proper maintenance of Contract Staff files as it will serve as the basic record to compare performance and productivity of the Contract Staff well ahead and take the steps of collecting resignation letters or issuing termination letters with the correct period of notice.
Open a Tracker ?
Yes for every Contract Staff open a Tracker on his/her Conduct.
Therefore this need to document Contract Staff misconduct and their discipline in a “Tracker” is paramount. Documenting these issues should not be considered as an unpleasant experience for most of Supervisors and Managers of the Contract Staffing Industry.
Down the line and time the documentation is definitely going to help the of the Contract Staffing Industry Professional to clearly tell the Contract Staff that a typical type of performance or behavior is not acceptable and this interaction can help Contract Staff improve their performance or their conduct to avoid termination.
..To be continued ....
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
First dedicated Legal Consultant for Indian Contract Staffing & Recruiting Industry
An expert is someone who has succeeded in making decisions and judgments simpler through knowing what to pay attention to and what to ignore.
Edward de Bono
https://www.citehr.com/285737-legal-...-industry.html
Being part of the Contract Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Contract Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
This is a continuation of the write up (Part I ) on the need to record " Contract Staff Misconduct."
In our earlier part we had pointed out the situations when the Contract Staffing Industry Clients wish to terminate Contract Staff on disciplinary and performance related issue.
For the Client they will just inform the SPOC of the Contract Staffing Industry Professional that this Contract Staff needs to be fired immediately .
Now for Contract Staffing Industry Professional he or she has to see it from the Legal perspective:-
For illustrative purposes from the Shops and Establishments Act under Section 30 of the Delhi Shops and Establishments Act, there are only two types of Termination.
The first type of Termination is termination with notice of 30 days and the other one is termination for misconduct wherein an opportunity is to be given to the Temp to explain his conduct.
What do Courts say on this !
But on this, Courts of Law have interpreted that “Termination for Misconduct on Performance related issue” can be done only after conducting a Domestic Enquiry. During the period of the enquiry Contract Staffing Industry entity has to pay the Contract Staff salary, 50% to 75% salary and continue the Contract Staff employment during the period of Enquiry as a via-media. For the Contract Staffing Industry Professional all this may look complicated.
How does the Contract Staffing Industry Professional take this !
The Branches of the Contract Staffing Entities have to adhere to proper maintenance of Contract Staff files as it will serve as the basic record to compare performance and productivity of the Contract Staff well ahead and take the steps of collecting resignation letters or issuing termination letters with the correct period of notice.
Open a Tracker ?
Yes for every Contract Staff open a Tracker on his/her Conduct.
Therefore this need to document Contract Staff misconduct and their discipline in a “Tracker” is paramount. Documenting these issues should not be considered as an unpleasant experience for most of Supervisors and Managers of the Contract Staffing Industry.
Down the line and time the documentation is definitely going to help the of the Contract Staffing Industry Professional to clearly tell the Contract Staff that a typical type of performance or behavior is not acceptable and this interaction can help Contract Staff improve their performance or their conduct to avoid termination.
..To be continued ....
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
First dedicated Legal Consultant for Indian Contract Staffing & Recruiting Industry
An expert is someone who has succeeded in making decisions and judgments simpler through knowing what to pay attention to and what to ignore.
Edward de Bono
https://www.citehr.com/285737-legal-...-industry.html
Sub:- " Contract Staff Misconduct." –Part II
Being part of the Contract Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Contract Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
This is a continuation of the write up (Part I ) on the need to record " Contract Staff Misconduct."
In our earlier part we had pointed out the situations when the Contract Staffing Industry Clients wish to terminate Contract Staff on disciplinary and performance related issue.
For the Client they will just inform the SPOC of the Contract Staffing Industry Professional that this Contract Staff needs to be fired immediately .
Now for Contract Staffing Industry Professional he or she has to see it from the Legal perspective:-
For illustrative purposes from the Shops and Establishments Act under Section 30 of the Delhi Shops and Establishments Act, there are only two types of Termination.
The first type of Termination is termination with notice of 30 days and the other one is termination for misconduct wherein an opportunity is to be given to the Temp to explain his conduct.
What do Courts say on this !
But on this, Courts of Law have interpreted that “Termination for Misconduct on Performance related issue” can be done only after conducting a Domestic Enquiry. During the period of the enquiry Contract Staffing Industry entity has to pay the Contract Staff salary, 50% to 75% salary and continue the Contract Staff employment during the period of Enquiry as a via-media. For the Contract Staffing Industry Professional all this may look complicated.
How does the Contract Staffing Industry Professional take this !
The Branches of the Contract Staffing Entities have to adhere to proper maintenance of Contract Staff files as it will serve as the basic record to compare performance and productivity of the Contract Staff well ahead and take the steps of collecting resignation letters or issuing termination letters with the correct period of notice.
Open a Tracker ?
Yes for every Contract Staff open a Tracker on his/her Conduct.
Therefore this need to document Contract Staff misconduct and their discipline in a “Tracker” is paramount. Documenting these issues should not be considered as an unpleasant experience for most of Supervisors and Managers of the Contract Staffing Industry.
Down the line and time the documentation is definitely going to help the of the Contract Staffing Industry Professional to clearly tell the Contract Staff that a typical type of performance or behavior is not acceptable and this interaction can help Contract Staff improve their performance or their conduct to avoid termination.
..To be continued ....
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
Being part of the Contract Staffing Industry from December 2005 onwards and being a specialized pioneer for Legal Consultation to the Contract Staffing and Recruiting Industry players we have been noticing that many of the Contract Staffing Industry clients want to terminate Contract Staff on disciplinary and performance related issue/s.
This is a continuation of the write up (Part I ) on the need to record " Contract Staff Misconduct."
In our earlier part we had pointed out the situations when the Contract Staffing Industry Clients wish to terminate Contract Staff on disciplinary and performance related issue.
For the Client they will just inform the SPOC of the Contract Staffing Industry Professional that this Contract Staff needs to be fired immediately .
Now for Contract Staffing Industry Professional he or she has to see it from the Legal perspective:-
For illustrative purposes from the Shops and Establishments Act under Section 30 of the Delhi Shops and Establishments Act, there are only two types of Termination.
The first type of Termination is termination with notice of 30 days and the other one is termination for misconduct wherein an opportunity is to be given to the Temp to explain his conduct.
What do Courts say on this !
But on this, Courts of Law have interpreted that “Termination for Misconduct on Performance related issue” can be done only after conducting a Domestic Enquiry. During the period of the enquiry Contract Staffing Industry entity has to pay the Contract Staff salary, 50% to 75% salary and continue the Contract Staff employment during the period of Enquiry as a via-media. For the Contract Staffing Industry Professional all this may look complicated.
How does the Contract Staffing Industry Professional take this !
The Branches of the Contract Staffing Entities have to adhere to proper maintenance of Contract Staff files as it will serve as the basic record to compare performance and productivity of the Contract Staff well ahead and take the steps of collecting resignation letters or issuing termination letters with the correct period of notice.
Open a Tracker ?
Yes for every Contract Staff open a Tracker on his/her Conduct.
Therefore this need to document Contract Staff misconduct and their discipline in a “Tracker” is paramount. Documenting these issues should not be considered as an unpleasant experience for most of Supervisors and Managers of the Contract Staffing Industry.
Down the line and time the documentation is definitely going to help the of the Contract Staffing Industry Professional to clearly tell the Contract Staff that a typical type of performance or behavior is not acceptable and this interaction can help Contract Staff improve their performance or their conduct to avoid termination.
..To be continued ....
With Regards
V.Sounder Rajan
Advocate -Labour & HR & Consumer Law Consultant -Chennai
IMPORTANT EPF CIRCULAR
EMPLOYEES PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, DELHI
Ref. No. LC(637)2009/Vol.I/203- Dated: 27.05.2014
Subject: Filing of Review Petition against judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009 in the matter of Marathwada Gramin Bank Employees Union Vs. Management of Marathwada Gramin Bank – regarding.
Reference: This office letter No. LC-2(637)2009/MH/12780 dated 08.10.2013
Please refer to the above Cited letter wherein views on the issue of filing Review Petition/implementation of the order dated 09.09.2011 of the Hon’ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamchari Sangathan & Ors. Vs. Management of Marathwada Gramin Bank, were called for.
2. The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether review petition need to be filed or not has been examined at Head Office. Having analysing the pros and cons of the issue, Competent Authority felt that there is no point in going for review against the said judgement of Hon’ble Supreme Court of India.
3. All the Regional Provident Fund Commissioners-In-charge of Regional /Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, option is available for the employees to contribute beyond the statutory wage ceiling if they so desire subject to the conditions enumerated under para 26(6) of the Employees’ Provident Funds Scheme, 1952.
Yours faithfully,
(P.K.UDGATA)
Addl. Central Provident Fund Commissioner (Compliance)
Tei.: 011-26172672
By implementing this Circular now EPFO cannot force the Contractors to contribute over and above the statutory wage ceiling in respect of their Contract employees.
EMPLOYEES PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, DELHI
Ref. No. LC(637)2009/Vol.I/203- Dated: 27.05.2014
Subject: Filing of Review Petition against judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009 in the matter of Marathwada Gramin Bank Employees Union Vs. Management of Marathwada Gramin Bank – regarding.
Reference: This office letter No. LC-2(637)2009/MH/12780 dated 08.10.2013
Please refer to the above Cited letter wherein views on the issue of filing Review Petition/implementation of the order dated 09.09.2011 of the Hon’ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamchari Sangathan & Ors. Vs. Management of Marathwada Gramin Bank, were called for.
2. The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether review petition need to be filed or not has been examined at Head Office. Having analysing the pros and cons of the issue, Competent Authority felt that there is no point in going for review against the said judgement of Hon’ble Supreme Court of India.
3. All the Regional Provident Fund Commissioners-In-charge of Regional /Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, option is available for the employees to contribute beyond the statutory wage ceiling if they so desire subject to the conditions enumerated under para 26(6) of the Employees’ Provident Funds Scheme, 1952.
Yours faithfully,
(P.K.UDGATA)
Addl. Central Provident Fund Commissioner (Compliance)
Tei.: 011-26172672
By implementing this Circular now EPFO cannot force the Contractors to contribute over and above the statutory wage ceiling in respect of their Contract employees.
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