IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
In continuation of our earlier post on the subject:
Clients want the Staffing or Temping Company to terminate the Employee for dishonesty, theft, misconduct, etc. Is it correct?
There is nothing like summary termination in Indian Law except if it is for proven misconduct.
It has to be proven beyond doubt in an Enquiry done for the purpose. In Staffing & Temping Business, such an Enquiry cannot be practically done as the incident would have occurred in the Client's place. Definitely, the risk is there in such termination action without conducting an enquiry. There is an element of practical and high risk in such terminations. All such terminations can bounce back with possible Labour Claims.
A definitive process with expert Legal support has to be chalked out with the concurrence of the Client at the time of signing the Contract with the Client itself.
With Regards
Advocates & Notaries - Legal Consultants - HR
E-mail: rajanassociates@eth.net
Mobile: 9025792684-9025792634
From India, Bangalore
Acknowledge(0)
Amend(0)
204In continuation of our earlier post on the subject:
Clients want the Staffing or Temping Company to terminate the Employee for dishonesty, theft, misconduct, etc. Is it correct?
There is nothing like summary termination in Indian Law except if it is for proven misconduct.
It has to be proven beyond doubt in an Enquiry done for the purpose. In Staffing & Temping Business, such an Enquiry cannot be practically done as the incident would have occurred in the Client's place. Definitely, the risk is there in such termination action without conducting an enquiry. There is an element of practical and high risk in such terminations. All such terminations can bounce back with possible Labour Claims.
A definitive process with expert Legal support has to be chalked out with the concurrence of the Client at the time of signing the Contract with the Client itself.
With Regards
Advocates & Notaries - Legal Consultants - HR
E-mail: rajanassociates@eth.net
Mobile: 9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
Dear All,
We have found an interesting post on "What you need to know before buying background checks online" at What you need to know before buying background checks online which may be relevant in this post when hiring agencies for conducting background checks while recruiting personnel for the Staffing Business.
In the Indian context, the availability of online checks is still to start. NASSCOM has made a beginning for the Software Industry by opening a "National Skills Registry." Please see http://nationalskillsregistry.com <link updated to site home>.
With Regards,
Advocates & Notaries & Legal Consultants for Recruiting & Staffing Industry
E-mail: rajanassociates@eth.net
-9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
We have found an interesting post on "What you need to know before buying background checks online" at What you need to know before buying background checks online which may be relevant in this post when hiring agencies for conducting background checks while recruiting personnel for the Staffing Business.
In the Indian context, the availability of online checks is still to start. NASSCOM has made a beginning for the Software Industry by opening a "National Skills Registry." Please see http://nationalskillsregistry.com <link updated to site home>.
With Regards,
Advocates & Notaries & Legal Consultants for Recruiting & Staffing Industry
E-mail: rajanassociates@eth.net
-9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
Dear All,
In continuation of our earlier post on the subject:
Questions are raised on the rotation of employees of contractors working with Principal Employers.
The Contractor's employees are working in XYZ Co. [Client], and the employees are on the Contractor's payroll. The Contractor provides them PF, ESIC, Gratuity, bonus, leave salary, etc. But the Principal Employer wants rotation of the Contractor Employees who have completed 180 days and wants the appointment of new employees in the place of the left employees.
Can the request be acceded because all the employees are on the permanent rolls of the Contractor and not on a contract basis?
The request of the Client can be accepted and is meant to provide a break of service from continuous employment. Otherwise, the Staffing Company or Contractor will lose business. The concept of continuous employment is found in Sec 25 B of the Industrial Disputes Act.
25-B. Definition of continuous service: -- For the purpose of this Chapter,
(1) a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorized leave or an accident or a strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on the part of the workman;
(2) Where a workman is not in continuous service within the meaning of clause (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer—
(a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—
(i) one hundred and ninety days in the case of a workman employed below ground in a mine; and (ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—
(i) ninety-five days, in the case of a workman employed below ground in a mine; and (ii) one hundred and twenty days, in any other case;
Explanation: -- For the purpose of clause (2), the number of days on which a workman has actually worked under an employer shall include the days on which—
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment [Standing Orders] Act, 1946 (20 of 1946), or under this Act or under any other law applicable to the Industrial establishment;
(ii) he has been on leave with full wages, earned in the previous years; (iii) he has been absent due to temporary disablement caused by an accident arising out of and in the course of his employment; and (iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
The Client from their end wants to overcome the "continuous employment of the Contractor's employee with them" for various reasons like avoiding a claim for permanency from the Contractor's employees, and this cannot be faulted. In case the employees are permanent on the Contractor's rolls, which means you need to swap your employees between different Clients. From the "dedicated" mode of deputation, a need may arise to switch to "multiple" modes. This is where the Indian Temp Staff Industry must aim to go. The Appointment Letter and Agreement with the Contractors' Staff have to be tuned to take care of all this with expert legal help.
There are many inter-related issues to this, which we will address in our further posts.
With Regards,
V. Sounder Rajan
Advocates & Notaries - Legal Consultants-HR
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
Dear All,
In continuation of our earlier post on the subject:
Questions are raised on the rotation of employees of contractors working with Principal Employers.
The Contractor's employees are working in XYZ Co. [Client], and the employees are on the Contractor's payroll. The Contractor provides them PF, ESIC, Gratuity, bonus, leave salary, etc. But the Principal Employer wants rotation of the Contractor Employees who have completed 180 days and wants the appointment of new employees in the place of the left employees.
Can the request be acceded because all the employees are on the permanent rolls of the Contractor and not on a contract basis?
The request of the Client can be accepted and is meant to provide a break of service from continuous employment. Otherwise, the Staffing Company or Contractor will lose business. The concept of continuous employment is found in Sec 25 B of the Industrial Disputes Act.
25-B. Definition of continuous service: -- For the purpose of this Chapter,
(1) a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorized leave or an accident or a strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on the part of the workman;
(2) Where a workman is not in continuous service within the meaning of clause (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer—
(a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—
(i) one hundred and ninety days in the case of a workman employed below ground in a mine; and (ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—
(i) ninety-five days, in the case of a workman employed below ground in a mine; and (ii) one hundred and twenty days, in any other case;
Explanation: -- For the purpose of clause (2), the number of days on which a workman has actually worked under an employer shall include the days on which—
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment [Standing Orders] Act, 1946 (20 of 1946), or under this Act or under any other law applicable to the Industrial establishment;
(ii) he has been on leave with full wages, earned in the previous years; (iii) he has been absent due to temporary disablement caused by an accident arising out of and in the course of his employment; and (iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
The Client from their end wants to overcome the "continuous employment of the Contractor's employee with them" for various reasons like avoiding a claim for permanency from the Contractor's employees, and this cannot be faulted. In case the employees are permanent on the Contractor's rolls, which means you need to swap your employees between different Clients. From the "dedicated" mode of deputation, a need may arise to switch to "multiple" modes. This is where the Indian Temp Staff Industry must aim to go. The Appointment Letter and Agreement with the Contractors' Staff have to be tuned to take care of all this with expert legal help.
There are many inter-related issues to this, which we will address in our further posts.
With Regards,
V. Sounder Rajan
Advocates & Notaries - Legal Consultants-HR
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply is factually correct regarding the rotation of employees working with Principal Employers and the concept of continuous employment under Sec 25B of the Industrial Disputes Act. (1 Acknowledge point)
0
0
Dear All,
By way of refurbishing HR knowledge for the staffing industry, we have attached the historic ESI Circular, which, in effect, recognized outsourcing as a legal practice in India. In our earlier post on the same subject, we did not highlight the gist, which we are doing in this post.
As per the ESI Circular, the following types of outsourcing contracts are recognized. It categorizes the outsourcing process and calls outsourcing in simple terms of "Job work":
(a) The job work done inside the factory/establishment premises through contractors/immediate employers having independent ESIC Code Nos.
(b) Job work done inside the factory premises through contractors/immediate employers not having independent ESIC Code Nos.
(c) Job work done outside the factory/establishment premises through factories/establishments which are having independent Code Nos.
(d) Job work done outside the factory/establishment premises through factories/establishments which are not having independent Code Nos, but the supervision is being exercised by the principal employer.
(e) Job work done outside the factory premises through units engaging less than 10/20 employees but working exclusively for the principal employer.
(f) Job work done outside the factory/establishment premises through factories/establishments engaging less than 10/20 employees which are not independently coverable, and where no supervision is exercised, and who are undertaking the work for more than one employer.
(g) Job work done outside the factory premises through contractors/immediate employers who perform the work through home workers or work in non-implemented areas.
With regards,
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
9025792684 - 9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
By way of refurbishing HR knowledge for the staffing industry, we have attached the historic ESI Circular, which, in effect, recognized outsourcing as a legal practice in India. In our earlier post on the same subject, we did not highlight the gist, which we are doing in this post.
As per the ESI Circular, the following types of outsourcing contracts are recognized. It categorizes the outsourcing process and calls outsourcing in simple terms of "Job work":
(a) The job work done inside the factory/establishment premises through contractors/immediate employers having independent ESIC Code Nos.
(b) Job work done inside the factory premises through contractors/immediate employers not having independent ESIC Code Nos.
(c) Job work done outside the factory/establishment premises through factories/establishments which are having independent Code Nos.
(d) Job work done outside the factory/establishment premises through factories/establishments which are not having independent Code Nos, but the supervision is being exercised by the principal employer.
(e) Job work done outside the factory premises through units engaging less than 10/20 employees but working exclusively for the principal employer.
(f) Job work done outside the factory/establishment premises through factories/establishments engaging less than 10/20 employees which are not independently coverable, and where no supervision is exercised, and who are undertaking the work for more than one employer.
(g) Job work done outside the factory premises through contractors/immediate employers who perform the work through home workers or work in non-implemented areas.
With regards,
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
9025792684 - 9025792634
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply contains accurate information regarding the types of outsourcing contracts recognized by the ESI Circular. No amendments are needed. (1 Acknowledge point)
0
0
Sub: Union Government Open to Changes in Contract Labour Law [CLRA]
Dear All,
As per the report from the premier press organization in India, Press Trust of India [PTI], in its report dated 22-10-2010 published in the Business Standard of 23rd October 2010, Honorable Minister of State for Labour and Employment, Mr. Harish Rawat, addressing a seminar on 'Management of Contract Labour in PSEs' [Public Sector Enterprises] organized by Standing Conference of Public Enterprise, expressed concerns over the denial of statutory benefits to contract labour and said the government would proceed with amendments to the law for such workers with an open mind.
"As far as amendments to the Contract Labour (Regulation & Abolition) Act, 1970 are concerned, we will proceed with an open mind," Mr. Rawat said. Industry has been demanding for long that Section 10 of the Contract Labour (Regulation & Abolition) Act 1970 should be dispensed with, but indicated that on the contrary, the Unionists think the other way round. He indicated that under Section 10, the Government can identify any process, operation, or other work in an establishment where it can prohibit any employment of contract labour and pointed out that the act is aimed to abolish and regulate contract labour.
When asked whether any amendment bill for making changes in the Act is expected to be tabled in the forthcoming winter session, Mr. Rawat said, "We are preparing the draft bill, which is unlikely to be tabled in the next Parliament session."
The Minister urged the public sector to be a role model employer and to show a pathway to the private sector in implementing government regulations on labour.
Echoing similar views, Labour Secretary P.C. Chaturvedi said, "The law (for contract labour) has lost its spirit. There was an intention to reduce labour law over a period of time, but it happened the other way round." "Everybody is employing contract labour to reduce cost. But cutting cost does not mean exploitation of labour. It should be done by increasing productivity by modernization, best practices, and using the best technology," he said.
Mr. Chaturvedi said, "Now the public sector is using contract labour to cut cost, and such workers are treated as second-grade citizens."
"It is the PSUs, which should show the way to the private sector. If the contract workers are treated with a human face, the demand for regularization (of employment) would mellow down," he added.
On this occasion, Director-General SCOPE U D Choubey said, "There are a plethora of social security laws in India, and SCOPE endorses the views of the government that the welfare of the workers is a real concern as a large number of people in the country are living below the poverty line."
We support the views of the Minister and Labour Secretary P.C. Chaturvedi that there should be a balanced approach.
We eagerly await the draft legislation on behalf of the Industry.
With Regards,
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth,net, -9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
0
0
Dear All,
As per the report from the premier press organization in India, Press Trust of India [PTI], in its report dated 22-10-2010 published in the Business Standard of 23rd October 2010, Honorable Minister of State for Labour and Employment, Mr. Harish Rawat, addressing a seminar on 'Management of Contract Labour in PSEs' [Public Sector Enterprises] organized by Standing Conference of Public Enterprise, expressed concerns over the denial of statutory benefits to contract labour and said the government would proceed with amendments to the law for such workers with an open mind.
"As far as amendments to the Contract Labour (Regulation & Abolition) Act, 1970 are concerned, we will proceed with an open mind," Mr. Rawat said. Industry has been demanding for long that Section 10 of the Contract Labour (Regulation & Abolition) Act 1970 should be dispensed with, but indicated that on the contrary, the Unionists think the other way round. He indicated that under Section 10, the Government can identify any process, operation, or other work in an establishment where it can prohibit any employment of contract labour and pointed out that the act is aimed to abolish and regulate contract labour.
When asked whether any amendment bill for making changes in the Act is expected to be tabled in the forthcoming winter session, Mr. Rawat said, "We are preparing the draft bill, which is unlikely to be tabled in the next Parliament session."
The Minister urged the public sector to be a role model employer and to show a pathway to the private sector in implementing government regulations on labour.
Echoing similar views, Labour Secretary P.C. Chaturvedi said, "The law (for contract labour) has lost its spirit. There was an intention to reduce labour law over a period of time, but it happened the other way round." "Everybody is employing contract labour to reduce cost. But cutting cost does not mean exploitation of labour. It should be done by increasing productivity by modernization, best practices, and using the best technology," he said.
Mr. Chaturvedi said, "Now the public sector is using contract labour to cut cost, and such workers are treated as second-grade citizens."
"It is the PSUs, which should show the way to the private sector. If the contract workers are treated with a human face, the demand for regularization (of employment) would mellow down," he added.
On this occasion, Director-General SCOPE U D Choubey said, "There are a plethora of social security laws in India, and SCOPE endorses the views of the government that the welfare of the workers is a real concern as a large number of people in the country are living below the poverty line."
We support the views of the Minister and Labour Secretary P.C. Chaturvedi that there should be a balanced approach.
We eagerly await the draft legislation on behalf of the Industry.
With Regards,
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth,net, -9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply accurately reflects the statements made by the Hon'ble Minister of State for Labour and Employment regarding potential amendments to the Contract Labour (Regulation & Abolition) Act, 1970. The information provided aligns with the original post on legal compliance and the potential changes in labor laws. (1 Acknowledge point)
0
0
CiteHR.AI
(Fact Checked)-The user's reply correctly summarizes the concerns raised by the Hon'ble Minister of State for Labour and Employment regarding the Contract Labour (Regulation & Abolition) Act, 1970 and the potential amendments. The information provided aligns with the latest developments in labor laws. (1 Acknowledge point)
0
0
Though the Act in its title proclaims "Abolition" of contract labor, in effect, it only 'regulates' the employment of contract labor.
The reality is that today contract labor has become an essential source of employment in any industry/office, be it private or government. It is noted that even in some judicial forums, contract labor exists. So, it is an accepted mode of employment.
Efforts should, therefore, be made to ensure that such a mode of employment does not lead to the exploitation of labor. At the same time, the concerns of employers to have a disciplined and flexible workforce for effective and profitable working should also be addressed.
From India, Madras
Acknowledge(0)Amend(0)
0
0
The reality is that today contract labor has become an essential source of employment in any industry/office, be it private or government. It is noted that even in some judicial forums, contract labor exists. So, it is an accepted mode of employment.
Efforts should, therefore, be made to ensure that such a mode of employment does not lead to the exploitation of labor. At the same time, the concerns of employers to have a disciplined and flexible workforce for effective and profitable working should also be addressed.
From India, Madras
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user reply correctly emphasizes the importance of regulating contract labor to prevent exploitation while meeting the needs of employers. The mention of contract labor's acceptance and the need for balance is insightful and aligns with HR best practices. (1 Acknowledge point)
0
0
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment: Whether on termination of the Contract Employee, the Employer is bound to issue the Experience certificate?
In Contract Labour Law [CLRA], the Relieving Letter is called the Service Certificate and is governed by Rule 77 of the CLRA Rules. This can also be called the Experience Certificate.
Service certificate.- On termination of employment for any reason whatsoever, the contractor shall issue to the workman whose services have been terminated a Service Certificate in Form XV.
The salient details are:
- Name and address of contractor
- Name and address of establishment in/ under which the contract is carried on ...
- Nature and location of work
- Name and address of the workman
- Age or Date of Birth
- Identification Marks
- Father's / Husband's name
- Total period Employed
- Starting Date
- Ending Date
- Nature of the Work
- Details of Salary/Wages
Consequently, the issue of the Service Certificate as per Form XV is mandatory. It has to be automatically issued without a request from the Contract Employee for the following cases:
1. Termination
2. Resignation
3. Absconding or voluntary cessation of work.
The issue of the Service Certificate is also protective as the Last working Day with the Contractor and the Principal Employer is established. Therefore, from the Employer's side, there should be no hesitation in issuing this certificate as a part of the F & F. Impression to the contrary may lead to Labour claims for back wages and re-instatement claims.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
-9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment: Whether on termination of the Contract Employee, the Employer is bound to issue the Experience certificate?
In Contract Labour Law [CLRA], the Relieving Letter is called the Service Certificate and is governed by Rule 77 of the CLRA Rules. This can also be called the Experience Certificate.
Service certificate.- On termination of employment for any reason whatsoever, the contractor shall issue to the workman whose services have been terminated a Service Certificate in Form XV.
The salient details are:
- Name and address of contractor
- Name and address of establishment in/ under which the contract is carried on ...
- Nature and location of work
- Name and address of the workman
- Age or Date of Birth
- Identification Marks
- Father's / Husband's name
- Total period Employed
- Starting Date
- Ending Date
- Nature of the Work
- Details of Salary/Wages
Consequently, the issue of the Service Certificate as per Form XV is mandatory. It has to be automatically issued without a request from the Contract Employee for the following cases:
1. Termination
2. Resignation
3. Absconding or voluntary cessation of work.
The issue of the Service Certificate is also protective as the Last working Day with the Contractor and the Principal Employer is established. Therefore, from the Employer's side, there should be no hesitation in issuing this certificate as a part of the F & F. Impression to the contrary may lead to Labour claims for back wages and re-instatement claims.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
-9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The information provided in the user reply regarding the issuance of Service Certificate in Form XV under the Contract Labour Law (CLRA) Rule 77 is accurate and in line with legal requirements. (1 Acknowledge point)
0
0
Dear All
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment "Whether on termination of the Contract Employee the Employer is bound to settle the dues to the Employee at his own sweet will and pleasure or there is any rule to settle it within a time?
In the Contract Labour Law [CLRA] Rule 66 provides for the answer. It reads like this:
“Where the employment of any worker is terminated by or contractor the wages earned by him shall be paid before the expiry of the second working day from the day on which ‘he employment is terminated. “
Therefore there is a duty to settle the dues of employee before the expiry of the second working day from the day on which the employment is terminated.
Employers therefore cannot legally delay the Full & Final Settlement of Temporary or Contract Employees beyond the Statutory period .
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
IMMEDIATE LEGAL QUESTIONS HAUNTING INDIAN STAFFING COMPANIES
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment "Whether on termination of the Contract Employee the Employer is bound to settle the dues to the Employee at his own sweet will and pleasure or there is any rule to settle it within a time?
In the Contract Labour Law [CLRA] Rule 66 provides for the answer. It reads like this:
“Where the employment of any worker is terminated by or contractor the wages earned by him shall be paid before the expiry of the second working day from the day on which ‘he employment is terminated. “
Therefore there is a duty to settle the dues of employee before the expiry of the second working day from the day on which the employment is terminated.
Employers therefore cannot legally delay the Full & Final Settlement of Temporary or Contract Employees beyond the Statutory period .
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The information provided in the user reply regarding the Contract Labour Law Rule 66 is [B]accurate[/B] based on the latest laws and regulations. (1 Acknowledge point)
0
0
Best wishes to our followers for a prosperous 2011.
Immediate Legal Questions for Indian Staffing Companies
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment regarding the duty of the Principal Employer in ensuring timely payment of salaries to the contract workmen.
Rule 72 of the CLRA Rules states as follows:
"The principal employer shall ensure the presence of his authorized representative at the place and time of disbursement of wages by the contractor to the workmen, and it shall be the duty of the contractor to ensure the disbursement of wages in the presence of such authorized representative."
Consequently, when the rule clearly stipulates a duty on the part of the Principal Employer to be present at the place and time of disbursement of wages by the contractor to the workmen and also the duty of the contractor to ensure the disbursement of wages in the presence of the Principal Employer, it is a matter of joint responsibility.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
Email: rajanassociates@eth.net
9025792684
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
Immediate Legal Questions for Indian Staffing Companies
In continuation of our earlier post on the subject:
A common question arises in Contractual Employment regarding the duty of the Principal Employer in ensuring timely payment of salaries to the contract workmen.
Rule 72 of the CLRA Rules states as follows:
"The principal employer shall ensure the presence of his authorized representative at the place and time of disbursement of wages by the contractor to the workmen, and it shall be the duty of the contractor to ensure the disbursement of wages in the presence of such authorized representative."
Consequently, when the rule clearly stipulates a duty on the part of the Principal Employer to be present at the place and time of disbursement of wages by the contractor to the workmen and also the duty of the contractor to ensure the disbursement of wages in the presence of the Principal Employer, it is a matter of joint responsibility.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
Email: rajanassociates@eth.net
9025792684
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply correctly highlights the duty of the Principal Employer regarding the timely payment of salaries to contract workmen as per Rule 72 of the CLRA Rules. The joint responsibility is accurately explained. (1 Acknowledge point)
0
0
Dear All,
In continuation of our earlier post on the timely payment of wages to the Contractor's employees under Rule 72 of CLRA Rules, under the next Rule 73, it is expressly provided that the authorized representative of the principal employer shall record, under his signature, a certificate at the end of the entries in the register of wages or the Register of Wages-cum-Muster Roll, as the case may be, in the following form:
"Certified that the amount shown in column No---------- has been paid to the workmen concerned in my presence on -------- at ---------"
Actually, the Rules provide for supervision and certification by the Principal Employer at the time of every payment to the Contractor's employees by the Contractor.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
-9025792684.
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
In continuation of our earlier post on the timely payment of wages to the Contractor's employees under Rule 72 of CLRA Rules, under the next Rule 73, it is expressly provided that the authorized representative of the principal employer shall record, under his signature, a certificate at the end of the entries in the register of wages or the Register of Wages-cum-Muster Roll, as the case may be, in the following form:
"Certified that the amount shown in column No---------- has been paid to the workmen concerned in my presence on -------- at ---------"
Actually, the Rules provide for supervision and certification by the Principal Employer at the time of every payment to the Contractor's employees by the Contractor.
With Regards,
V. Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail: rajanassociates@eth.net
-9025792684.
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply is correct regarding the certification requirement by the Principal Employer under Rule 73 of the CLRA Rules. (1 Acknowledge point)
0
0
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
CiteHR.AI
(Fact Checked)-The information provided in the user reply is correct regarding the termination process for staffing and temping companies in India. No amendments needed. (1 Acknowledge point)