Dear Prachi,

Please call a second manpower contractor and ask him for some replacements on an urgent basis. Additionally, arrange a meeting with your boss for the new requirements. Let the second contractor handle all the issues independently. Once you provide me with the location, I will be able to offer better assistance to you.

After some time, the problems will automatically be resolved at your factory.

Thanks,
Ashok

From India, New Delhi
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Dear Prachi,

First, organize a meeting with the owner of the contract and their immediate contact person who handles the site. Run a PowerPoint presentation on ESIC, PF, Contract Labour Act, and provisions of the Minimum Wages Act. Additionally, ask the authority in the unit who approves the contract bills to collaborate with you in ensuring that the contractor has complied with all the provisions. This process should be ongoing.

Thank you.

From India, Mumbai
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This is a very big problem nowadays the industry is facing. We must accept the facts and mistakes as well. There is an HR role in the above problem. The problem facing contract labor is in well-organized private industries having all certificates, i.e., best employer, best HR, OHSAS, ISO-19000, ISO-14000, etc. Due to pomp and show business, some of the top management people have taken benefits by improving their KR through cost-cutting. Market correction came in the year 2007, and they have taken maximum benefits in the name of qualification and declared themselves as professionals. In the bottom line, no benefits are given. HR teams in most industries are supported because HR heads have taken the same benefits. Now, loyal, experienced bottom line employees are not loyal, and in most industries, they exacerbate the above problem. If you give contract workers minimum wage, they will put forth new demands repeatedly. Think about NREGA workers who work for a maximum of 3-4 hours and receive the same amount at their homes. How can contract workers be satisfied with 8 hours of hard work where they face accommodation, education, and lots of other problems? Initially, industries should restructure their experienced employees' salaries and delve into the industry's history.

Regards,

Devendra

From India, Varanasi
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Dear Ms. Prachi,

According to the Factory Act, the Occupier (i.e., MD of the company) is responsible for all the litigation that may arise. Therefore, I kindly request you to convey your findings to your immediate boss (if possible, to the MD/plant head).

I suggest that you only observe, study the situation, and then react. Consider this from another perspective: if the production line of your company stops due to your actions, you may be held liable. As you are new to the company, they may ask you to leave.

If you are serious about your career and life (as you are trying to handle the situation with the "Gundaj"), be cautious. Avoid being emotional and think pragmatically.

I am confident this will be a valuable learning experience for you.

For any further assistance, please contact personnel at emdet dot com or call 09850401160.

Thank you.

From India, Pune
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I agree with Mr. Kameswarao's solution to the problem of the contractor. Otherwise, I have seen in my 25 years of service that personnel managers have to check the contractor for all statutory compliance. In every organization, neither the Account department nor your GM/VP support you to solve the contractor's problems because everybody, including the owner of the company, is interested in the business of the company and they are least bothered about all these statutory compliances under various Labour Laws.

Regards, NKJ

From India, Karwar
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Dear Prachi, Last but not least deduct the EPF and ESIC amount directly from the contractors bill and deposit on their behalf to the concerned authority. Surendra Verma GM- Hr. & Admn SPPL
From India, Delhi
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Dear Prachi Prasad,

Please remember that you may fall into the trap of some influential figures within your company. It may not be easy to take action against these contractors when you are dealing with junior staff. The best ways to handle this situation are:

1) Keep warning these contractors about their responsibilities regarding ESI/EPF and minimum wages.
2) Ensure all correspondence is marked to your seniors, management, or Accounts Head.
3) Make sure to assert your points strongly and send a notice stating that ESI contributions on the wage bill will be recovered from their contract bill if they fail to provide the ESI registration certificate and deposit proof.
4) Give them sufficient time to comply.
5) Engage all your seniors and the accounts head in this matter.
6) It is advisable to hold a meeting with all your contractors and document the discussions.

Your case may not be easy to discuss openly and find solutions.

Thank you.

From India, Madras
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Dear Prasad,

1) You should ensure the payment of wages as per the Minimum Wages Act.
2) You need to find a suitable person from your organization and conduct a meeting with the contractor.
3) You should explain the advantages and disadvantages of statutory compliance to your contractor.
4) You can advise the contractor to submit their bill with a copy of their wage record.
5) You can withhold the PF and ESI contributions of both employees and employers.
6) You should advise your contractor to submit the individual (only for your company) PF and ESI challan to you.
7) Prepare the cheque and remit the contributions to their PF and ESI codes.

Thank you.

From India, Madras
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