Hello everybody,
Some of you have mentioned that employees are entitled to 1 day of leave for every 20 days worked. My question is, which act are you referring to - the Factory Act or any specific section mentioned in the CL Act-1970? Please provide a specific legal reference.
Tapan
From India, Hyderabad
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4Some of you have mentioned that employees are entitled to 1 day of leave for every 20 days worked. My question is, which act are you referring to - the Factory Act or any specific section mentioned in the CL Act-1970? Please provide a specific legal reference.
Tapan
From India, Hyderabad
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Dear,
The Contract Labour Act clearly states that the leave benefits shall be as per the Fact Act/National & Festival Holidays Act of the state. However, if the principal employer is providing more benefits to its workmen covered under the above Act, then those rules will be applicable.
Ak Malhotra
Sr. General Manager
From India, Guwahati
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The Contract Labour Act clearly states that the leave benefits shall be as per the Fact Act/National & Festival Holidays Act of the state. However, if the principal employer is providing more benefits to its workmen covered under the above Act, then those rules will be applicable.
Ak Malhotra
Sr. General Manager
From India, Guwahati
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Dear, I fully agree with ACCHR on the issue. When you are engaging contract labour in your factories then they are entitle for PL/EL under the provisions of Factories Act 1948. regards, manoranjan
From India, Delhi
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From India, Delhi
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Dear all,
For contract laborers, leave benefits will be applicable as per the Factory Act 1948 (20 days/1 day leave). Additionally, the Bonus and Gratuity Act also applies to contract laborers.
Moreover, the Building and Other Construction Workers (BOCW) Act of 1996 is applicable in Karnataka state where ten or more building workers are engaged in any building or construction work. The licensing authority in Karnataka is the Labor Officer. Cess payment under this act is required, amounting to 1% of the total project cost, to be paid by the principal employer, contractor, or subcontractor.
Santhosh Labour Compliance ABB Ltd
From India
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For contract laborers, leave benefits will be applicable as per the Factory Act 1948 (20 days/1 day leave). Additionally, the Bonus and Gratuity Act also applies to contract laborers.
Moreover, the Building and Other Construction Workers (BOCW) Act of 1996 is applicable in Karnataka state where ten or more building workers are engaged in any building or construction work. The licensing authority in Karnataka is the Labor Officer. Cess payment under this act is required, amounting to 1% of the total project cost, to be paid by the principal employer, contractor, or subcontractor.
Santhosh Labour Compliance ABB Ltd
From India
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Dear Members,
Though this post is very old, the members are still responding. Therefore, we would also like to share our opinion on this important query. The original subject is whether leave rules are applicable under the Contract Labour Act or whether leave is permitted for contract labour under the CL Act, 1970.
In our opinion, there is no provision in this act that provides leaves to contract workers. However, where this Act is applicable and the work of contract labour and the directly employed workers of Principal Employers is the same or of similar nature, then the conditions of employment such as wages, leaves, etc., will be the same in both cases as per the terms and conditions of the license issued by the Government. After an examination of the Punjab Industrial Establishment (NFH & CS Leave) Act, 1965, this Act does not seem to apply to contractors. If the ESI Act, 1948 is applicable, then in that case, those leave provisions will be applicable to contract workers. Members are advised to review their State/Central Rules, whichever is applicable in their case, before taking any action on the matter as we are sharing our opinion based on Haryana CL Rules.
Regards,
R.N. Khola Sr. Associate
From India, Delhi
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Though this post is very old, the members are still responding. Therefore, we would also like to share our opinion on this important query. The original subject is whether leave rules are applicable under the Contract Labour Act or whether leave is permitted for contract labour under the CL Act, 1970.
In our opinion, there is no provision in this act that provides leaves to contract workers. However, where this Act is applicable and the work of contract labour and the directly employed workers of Principal Employers is the same or of similar nature, then the conditions of employment such as wages, leaves, etc., will be the same in both cases as per the terms and conditions of the license issued by the Government. After an examination of the Punjab Industrial Establishment (NFH & CS Leave) Act, 1965, this Act does not seem to apply to contractors. If the ESI Act, 1948 is applicable, then in that case, those leave provisions will be applicable to contract workers. Members are advised to review their State/Central Rules, whichever is applicable in their case, before taking any action on the matter as we are sharing our opinion based on Haryana CL Rules.
Regards,
R.N. Khola Sr. Associate
From India, Delhi
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CONTRACT LABOUR ACT
Applicability:
The Act applies to [The Principal Employer of an Establishment] and the contractors employed as more than 20 workmen are/were employed on one day during last year as contract labour.
Registration of Establishment & its fee:
The Principal Employer of an establishment to whom the Act is applicable is required to get himself registered with the Registering Officer of the area i.e. the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer by submitting an application in triplicate in Form-I along with the prescribed fee mentioned herein under.
Grant of certificate of registration:
If the application for registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration in Form II.
Amendment of certificate of registration:
If in relation to an establishment, there is any change in the particulars specified in the certificate of registration, the principal employer of the establishment shall intimate to the registering officer within thirty days from the date when such change takes place, the particulars of, and the reasons for, such change. On the receipt of the intimation the registering officer is satisfied that there has occurred a change in the particulars of the establishment, as entered in the register in Form III.
Application for a Licence:
The Principal employer shall within 15 days of the commencement or completation of each contract work under each contractor, submit a RETURN to the inspector, appointed ,intimating the actual dates for commencement or completion of such contract work, in FormVI-B.
Maintenance of records and submission of returns by Principal Employer:-
Register of contractors in respect of every establishment in Form XII and annual return in Form XXV in duplicate before 15th February.
Filing of Annual Return:
The principal employer shall send annually return in Form-XXV (in duplicate) so as to reach the Registering officer concerned not later than 15th February following the end of the year to which relates.
Display of Notices& Abstract of Act and Rules:
DIPTI SRIVASTAVA
ADVOCATE
From India, Mumbai
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Applicability:
The Act applies to [The Principal Employer of an Establishment] and the contractors employed as more than 20 workmen are/were employed on one day during last year as contract labour.
Registration of Establishment & its fee:
The Principal Employer of an establishment to whom the Act is applicable is required to get himself registered with the Registering Officer of the area i.e. the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer by submitting an application in triplicate in Form-I along with the prescribed fee mentioned herein under.
Grant of certificate of registration:
If the application for registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration in Form II.
Amendment of certificate of registration:
If in relation to an establishment, there is any change in the particulars specified in the certificate of registration, the principal employer of the establishment shall intimate to the registering officer within thirty days from the date when such change takes place, the particulars of, and the reasons for, such change. On the receipt of the intimation the registering officer is satisfied that there has occurred a change in the particulars of the establishment, as entered in the register in Form III.
Application for a Licence:
- Every application by a contractor for the grant of Licence shall be made in triplicate Form IV, to the licensing officer of the area.
- Every application for the grant of a licence shall be accompanied by a certificate by the Principal employer in Form V.
- Every Licence shall be granted in Form VI.
The Principal employer shall within 15 days of the commencement or completation of each contract work under each contractor, submit a RETURN to the inspector, appointed ,intimating the actual dates for commencement or completion of such contract work, in FormVI-B.
Maintenance of records and submission of returns by Principal Employer:-
Register of contractors in respect of every establishment in Form XII and annual return in Form XXV in duplicate before 15th February.
Filing of Annual Return:
The principal employer shall send annually return in Form-XXV (in duplicate) so as to reach the Registering officer concerned not later than 15th February following the end of the year to which relates.
Display of Notices& Abstract of Act and Rules:
- The principal employer shall display Notices showing the rates of wages, hours of work, wage period, dates of payment of wages name and addresses of the inspectors having jurisdiction, and date of payment of unpaid wages in English and in Hindi and in the local language understood by the majority of workers.
- Contractor shall display an abstract of the act and rules in English and Hindi or in the local language understood by the majority of workers.
- The employer has to ensure that the contractor is paying wages to his workmen before expiry of the 7th day of every month if the number of workers employed in the Company does not exceed a thousand, or before the expiry of the 10th day of every month if the number of workers employed in such Company are more than one thousand.
- To ensure that minimum wages are paid to contract labour.
- The Principal Employer shall pay wages in full to the contract workmen in case if the contractor fails to pay the same.
- The principal employer is statutorily responsible for payment of wages to contract labourers including arrears, in case, contractor commits default which he can recover from the contractor by deducting from any amount payable to him or as debt payable to him or as debt payable by him.
- The Act stipulates the obligation of principal employer and contractor employing contract labour to provide canteens facilities. In case of failure on the part of the contractor to provide such facilities, the Principal Employer is made liable to provide the amenities.
- The principal employer shall ensure while making payment to the contractor that the contractor has paid the employees provident fund contributions deductions both of the contractor and employees on time.
- The Act enjoins obligation on every principal employer and every contractor to maintain the registers and records.
- The principal employer shall send the return annually so that it reaches the registering officer not later than 15th February following the end of the year to which it relates.
- Muster Roll(Form-XVI)
- Register of Wages(Form-XVII)
- Register of Deductions for damage or loss (Form-XX)
- Register of Overtime(Form-XXIII)
- Register of Fines (Form-XXI)
- Register of Advances(Form-XXII)
- Wage slip(Form-XIX)
- Maintain register of employed person in Form-XII.
- Shall issue an employment card in Form –XIV.
- Shall issue a service certificate in Form-XV
DIPTI SRIVASTAVA
ADVOCATE
From India, Mumbai
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Dear all,
Our company is a telecom company. We hire employees on a contract basis for a fixed tenure, i.e., for one year. Does the leave policy apply under the Contract Labour Act as we have obtained a labor license for it? Can anybody specify whether the leave policy is applicable or not?
Regards,
Mohan Chauhan
From India, Mumbai
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Our company is a telecom company. We hire employees on a contract basis for a fixed tenure, i.e., for one year. Does the leave policy apply under the Contract Labour Act as we have obtained a labor license for it? Can anybody specify whether the leave policy is applicable or not?
Regards,
Mohan Chauhan
From India, Mumbai
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Dear Mohan Chauhan,
Leave policies are framed by us keeping in view the bare minimum statutory leaves, if any, applicable under any of the laws and not under any Act. If you are working as a contractor in the telecom company which is covered under The Factories Act, 1948, then in that case, you are also to give earned leaves to your workers/employees who may be employed for a fixed term contractual employment under the provisions of this Act. No leave provisions are there in the Contract Labour (R&A) Act, 1970.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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Leave policies are framed by us keeping in view the bare minimum statutory leaves, if any, applicable under any of the laws and not under any Act. If you are working as a contractor in the telecom company which is covered under The Factories Act, 1948, then in that case, you are also to give earned leaves to your workers/employees who may be employed for a fixed term contractual employment under the provisions of this Act. No leave provisions are there in the Contract Labour (R&A) Act, 1970.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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Dear all,
Can anybody help me in getting a clear picture of the leave policy for fixed-term employees? As my company is a telecom company where we hire candidates on a contract basis to sell our products in the market, we have taken a labor license for it.
Kindly suggest. Appreciate your view.
Regards,
Mohan
From India, Mumbai
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Can anybody help me in getting a clear picture of the leave policy for fixed-term employees? As my company is a telecom company where we hire candidates on a contract basis to sell our products in the market, we have taken a labor license for it.
Kindly suggest. Appreciate your view.
Regards,
Mohan
From India, Mumbai
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(Fact Checked)-The reply provided is accurate and provides a detailed explanation of the application of leave rules to contract workers under the Contract Labour Act, 1970. The response also correctly advises members to refer to State/Central rules for clarity. (1 Acknowledge point)