No. Contract Labour Act do not Prohibits Engaging Workman in Core Activities. However if the nature of new activity differs from earlier work, then Wages, Incentives, Safety Measures, Fringe benefits shall apply accordinglywith prior notification and sufficient period
regards
Adv Manoj Liyonzon
+91 7010513085
From India, Chennai
54regards
Adv Manoj Liyonzon
+91 7010513085
From India, Chennai
The requirement is just for 6 months over a period of 12 months period. Then why don't you employ workers directly for 6 months? Pay them wages directly, contribute to their PF, ESI etc directly without involving a contractor in between. This is even possible by employing a certain number of workers on a fixed term contract and terminate them once the work is over. Since the termination of fixed term employees will take place automatically, the retrenchment clauses will not become applicable. Even otherwise, for a normal working of 6 months which should be less than 240 days the retrenchment provisions will not come into picture. I think this kind of employment would be more safe.
From India, Kannur
From India, Kannur
Ok so any manufacturing unit whose core business is the manufacturing of products, can not employ any contractual worker in the core section of manufacturing. Fine but if they get their all benefits as same as co payroll permanent worker i.e PF, ESI, Pay, Bonus, what's the issue? The more people will get a job as per state minimum wage scale. PE must monitor the payment stringently of those workers.
From India
From India
Dear Sumitra,
If you read all the posts carefully, you will realise that CLAct does not prohibit engagingg contract labour in core activities as such and when Govt wants to prohibit
in certain industry it notifies to that effect in the gazette. In the absence of such notification, one can engage CL in core activities.
Regards
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
If you read all the posts carefully, you will realise that CLAct does not prohibit engagingg contract labour in core activities as such and when Govt wants to prohibit
in certain industry it notifies to that effect in the gazette. In the absence of such notification, one can engage CL in core activities.
Regards
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
Yes, you can engage the contract labour in the core activities of your establishment also. The CLRA Act does not prescribe the notion that you can or can not engage contract labour in certain activity. It is only the Appropriate Government who can notify in what activities contract labours can not be deployed. Other than that, contract labours can be engaged in almost any activity. However, as a professional we must foresee the implications in future before engaging contract labours in certain activities such as core activity as you suggested as it may lead to problem in future regarding employment and unnecessary litigation in this regard.
From India, Calcutta
From India, Calcutta
All of you please read section 10 of the Act. I had pointed to imminent danger of prohibition order for engaging contract labour in core process. It is call of the org whether to take risk or not.
From India, Mumbai
From India, Mumbai
Dear colleague,
No doubt there is exposure. But I want to know, in how many industries Govt has prohibited engaging Contract labour in core processes ever since tha Act came into existence? Therefore, despite certain amount of risk , organisations are engaging Contract labour in core processes by complying with the regulatory provisions of the Act and carrying on with the business for many year
. It is rampant practice to engage contract labour in assembly operations in electronic/ electrical industry, garment and such others in the absence of prohibitory orders.
The Act seeks to regulate service conditions of contract labour where it is not prohibited.
Regards
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
No doubt there is exposure. But I want to know, in how many industries Govt has prohibited engaging Contract labour in core processes ever since tha Act came into existence? Therefore, despite certain amount of risk , organisations are engaging Contract labour in core processes by complying with the regulatory provisions of the Act and carrying on with the business for many year
. It is rampant practice to engage contract labour in assembly operations in electronic/ electrical industry, garment and such others in the absence of prohibitory orders.
The Act seeks to regulate service conditions of contract labour where it is not prohibited.
Regards
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
Is it obligatory that only contractors having valid labour license be engaged? One organisation engages below 10 contract labourers through a Contractor and the CLAR Act is not applicable to him.What will be the consequence of such engagement?
From India, Kolkata
From India, Kolkata
As far as possible, engage those contractors who can get valid licence. Naturally, if the contractor has less than 20 people to be deployed in your plant, there is no need for them to get licence. There is no risk involved in such engagement. The highest risk with regard to engagement of workers through contractors is the claim for regularisation and this is possible even if the contractor has licence but the contract it self is not genuine or sham.
From India, Kannur
From India, Kannur
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Contract Labour Act.zip
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