Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Under what circumstances exemption can be given to an establishment from the operation of EPF Scheme :
Section 17 provides for it :
17. Power of exempt
(1) The appropriate government may by notification in the Official Gazette and subject to such conditions as may be specified in the notification exempt whether prospectively or retrospectively from the operation of all or any of the provisions of any Scheme :
(a) any establishment to which this Act applies if in the opinion of the appropriate government the rules of its provident fund with respect to the rates of contribution are not less favourable than those specified in section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of similar character or
(b) any establishment are in enjoyment of benefits in the nature of provident fund pension or gratuity and the appropriate government is of opinion that such benefits separately or jointly are on the whole not less favourable to such employees that the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of a similar character :
Provided that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its views on exemption to the appropriate government within such time limit as may be specified in the Scheme.
Sec 17 1 (a ) is with reference to exemption from PF Contribution and Sec 17 1 (b) is with reference to Pension and Gratuity.
The condition for exemption is that the Establishment claiming exemption is providing benefits to its employees the benefit provident fund ,pension or gratuity and the appropriate government is of opinion that such benefits are on the whole not less favourable to such employees that the benefits provided under the EPF Act or any Scheme in relation to the employees in any other establishment of a similar character .
Supposing a Scheme for PF ,Pension or Gratuity is framed by an Entity to be more beneficial than those provided in the EPF Act then the organization can file an Exemption Application with the Appropriate Govt and the Exemption can be granted after consultation with the Central Board .
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
50NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Under what circumstances exemption can be given to an establishment from the operation of EPF Scheme :
Section 17 provides for it :
17. Power of exempt
(1) The appropriate government may by notification in the Official Gazette and subject to such conditions as may be specified in the notification exempt whether prospectively or retrospectively from the operation of all or any of the provisions of any Scheme :
(a) any establishment to which this Act applies if in the opinion of the appropriate government the rules of its provident fund with respect to the rates of contribution are not less favourable than those specified in section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of similar character or
(b) any establishment are in enjoyment of benefits in the nature of provident fund pension or gratuity and the appropriate government is of opinion that such benefits separately or jointly are on the whole not less favourable to such employees that the benefits provided under this Act or any Scheme in relation to the employees in any other establishment of a similar character :
Provided that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its views on exemption to the appropriate government within such time limit as may be specified in the Scheme.
Sec 17 1 (a ) is with reference to exemption from PF Contribution and Sec 17 1 (b) is with reference to Pension and Gratuity.
The condition for exemption is that the Establishment claiming exemption is providing benefits to its employees the benefit provident fund ,pension or gratuity and the appropriate government is of opinion that such benefits are on the whole not less favourable to such employees that the benefits provided under the EPF Act or any Scheme in relation to the employees in any other establishment of a similar character .
Supposing a Scheme for PF ,Pension or Gratuity is framed by an Entity to be more beneficial than those provided in the EPF Act then the organization can file an Exemption Application with the Appropriate Govt and the Exemption can be granted after consultation with the Central Board .
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any recent development in Law giving a recognition to the Contract Staffing or Temp Staffing Industry?
Recently the Government of India introduced THE PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE BILL, 2010.
In the Bill the following definitions are noteworthy:
2 (f) “employee" means a person employed at a workplace for any work on regular, temporary, adhoc or daily wage basis, either directly or by or through an agent, including a contractor, with or without the knowledge of the principal employer, whether for remuneration or not, or working on a voluntary basis or otherwise, whether the terms of employment are express or implied and includes a domestic worker, a co-worker, a contract worker, probationer, trainee, apprentice or by any other name called;
Contract Staff deputation is taken care by including a person employed at a workplace for any work on regular, temporary, adhoc or daily wage basis, either directly or by or through an agent, including a contractor, with or without the knowledge of the principal employer.
g) “employer” means:- (i) in relation to any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit of the appropriate Government or a local authority, the head of that department, organisation,undertaking, establishment, enterprise,institution, office, branch or unit or such other officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf; (ii) in any workplace not covered under clause (i), any person responsible for the management, supervision and control of the of the workplace;
l) “Workplace” includes:- (i) any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly by the appropriate Government or the local authority or a Government company or a corporation or a cooperative society(ii) any private sector organisation or a private venture, undertaking, enterprise, institution, establishment, society, trust, nongovernmental organisation, unit or service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial or financial activities including production, supply, sale, distribution or service; (iii) a house or dwelling place; (iv) any place, vehicle either by air, land, rail or sea visited by the employee arising out of, or during and in the course of, employment;
Similarly in the Workplace definition the concept of service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial or financial activities including production, supply, sale, distribution or service has been included.
Viewers may also note that THE PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE BILL, 2010 is in the Bill stage and it has to be passed by both houses of Parliament ,then assent given by the President and then Notified in the Gazette to make it effective.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any recent development in Law giving a recognition to the Contract Staffing or Temp Staffing Industry?
Recently the Government of India introduced THE PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE BILL, 2010.
In the Bill the following definitions are noteworthy:
2 (f) “employee" means a person employed at a workplace for any work on regular, temporary, adhoc or daily wage basis, either directly or by or through an agent, including a contractor, with or without the knowledge of the principal employer, whether for remuneration or not, or working on a voluntary basis or otherwise, whether the terms of employment are express or implied and includes a domestic worker, a co-worker, a contract worker, probationer, trainee, apprentice or by any other name called;
Contract Staff deputation is taken care by including a person employed at a workplace for any work on regular, temporary, adhoc or daily wage basis, either directly or by or through an agent, including a contractor, with or without the knowledge of the principal employer.
g) “employer” means:- (i) in relation to any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit of the appropriate Government or a local authority, the head of that department, organisation,undertaking, establishment, enterprise,institution, office, branch or unit or such other officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf; (ii) in any workplace not covered under clause (i), any person responsible for the management, supervision and control of the of the workplace;
l) “Workplace” includes:- (i) any department, organisation, undertaking, establishment, enterprise, institution, office, branch or unit which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly by the appropriate Government or the local authority or a Government company or a corporation or a cooperative society(ii) any private sector organisation or a private venture, undertaking, enterprise, institution, establishment, society, trust, nongovernmental organisation, unit or service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial or financial activities including production, supply, sale, distribution or service; (iii) a house or dwelling place; (iv) any place, vehicle either by air, land, rail or sea visited by the employee arising out of, or during and in the course of, employment;
Similarly in the Workplace definition the concept of service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial or financial activities including production, supply, sale, distribution or service has been included.
Viewers may also note that THE PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE BILL, 2010 is in the Bill stage and it has to be passed by both houses of Parliament ,then assent given by the President and then Notified in the Gazette to make it effective.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
What are the penal provisions in the EPF Act for non compliance of the provisions of Contribution both Employer and Employee by Staffing and Recruiting Companies?
The rate of penal damages for belated payment of EPF dues is as follows:
If the period of default less than 2 months -5 %
If the period of default is 2 months above but less than 4 months – 10 %
If the period of default is 4 months above but less than 6 months – 15 %
If the period of default is 6 months above–25 %
The above is in addition to 12 % simple interest .
Apart from the above the further consequences for default are:
Attachment of Bank Accounts
Realization of dues from Debtors[ Garnishee Order]
Attachment of moveable and immovable properties.
Arrest and detention in Prison..
Action under section 406/409 of the Indian Penal Code[ Criminal Law] and Section 110 of Cr .P.C
Prosecution.Prosecution for Non payment of contributions normally end in favour of the Department.Mandatory punishment of detention in Prison is provided .
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
What are the penal provisions in the EPF Act for non compliance of the provisions of Contribution both Employer and Employee by Staffing and Recruiting Companies?
The rate of penal damages for belated payment of EPF dues is as follows:
If the period of default less than 2 months -5 %
If the period of default is 2 months above but less than 4 months – 10 %
If the period of default is 4 months above but less than 6 months – 15 %
If the period of default is 6 months above–25 %
The above is in addition to 12 % simple interest .
Apart from the above the further consequences for default are:
Attachment of Bank Accounts
Realization of dues from Debtors[ Garnishee Order]
Attachment of moveable and immovable properties.
Arrest and detention in Prison..
Action under section 406/409 of the Indian Penal Code[ Criminal Law] and Section 110 of Cr .P.C
Prosecution.Prosecution for Non payment of contributions normally end in favour of the Department.Mandatory punishment of detention in Prison is provided .
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Are there any statutory provision to be followed by the Staffing or Temping Agency in respect of the Salary Payments of Contract employees sent by the Staffing or Temping Agency for work to the Client as per the CLRA Rules?
In the CLRA Rules reference can be found from Rule 63 to 73 of Chapter VI .The same is extracted below.
63. The contractor shall fix wage periods in respect of which wages shall be payable.
64. No wage period shall exceed one month.
65 The wages of every person employed as contract labour is an or- by a contractor where less than one thousand such persons are paid before the expiry of the seventh day; in other case before the expiry of the tenth after the last day of the wage period in respect of which the wages are payable.
66. 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.
67 All payments of wages shall be made on a working day at the work premises and during the working time and on a date notified in advance and in case the work is completed before the expiry of the wage period, final payment shall be made within forty eight hours of the last working days.
68.Wages due to every Worker shall be paid to him direct or to other person authorized by him in this behalf.
69.All wages shall be paid in current coin or currency or in both.
70. Wages shall be paid without any deductions of any kind except those specified by the Central Government by general or special order in this behalf or permissible under the Payment of Wages Act, 1936 (IV of 1936).
71. A notice showing the wage period and the place and time of disbursement of wage shall be displayed, at the place of work and copy sent by contractor to the principal employer under acknowledgment.
72. The principal employer shall ensure the presence of his authorized representative at the place and time of disbursement of wages by the contractor to workman and it shall be the duty of the contractor to ensure the disbursement wages in the presence of such authorized representative.
73. 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 following form:
“Certified that the amount shown in column No---------- has been paid to the workmen concerned in my presence on -------- at ---------“
In our earlier posts reference to Rule 66,72and 73 has been done.The remaining Rules are referred to in this Post.
Please note that the whole idea of Contract Labour Regulation on this aspect is to ensure timely payment of Salaries and the Law has provided for such stringent provisions as there will be a tendency to avoid/delay the Salaries by Contractors to the Contract Employees.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Are there any statutory provision to be followed by the Staffing or Temping Agency in respect of the Salary Payments of Contract employees sent by the Staffing or Temping Agency for work to the Client as per the CLRA Rules?
In the CLRA Rules reference can be found from Rule 63 to 73 of Chapter VI .The same is extracted below.
63. The contractor shall fix wage periods in respect of which wages shall be payable.
64. No wage period shall exceed one month.
65 The wages of every person employed as contract labour is an or- by a contractor where less than one thousand such persons are paid before the expiry of the seventh day; in other case before the expiry of the tenth after the last day of the wage period in respect of which the wages are payable.
66. 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.
67 All payments of wages shall be made on a working day at the work premises and during the working time and on a date notified in advance and in case the work is completed before the expiry of the wage period, final payment shall be made within forty eight hours of the last working days.
68.Wages due to every Worker shall be paid to him direct or to other person authorized by him in this behalf.
69.All wages shall be paid in current coin or currency or in both.
70. Wages shall be paid without any deductions of any kind except those specified by the Central Government by general or special order in this behalf or permissible under the Payment of Wages Act, 1936 (IV of 1936).
71. A notice showing the wage period and the place and time of disbursement of wage shall be displayed, at the place of work and copy sent by contractor to the principal employer under acknowledgment.
72. The principal employer shall ensure the presence of his authorized representative at the place and time of disbursement of wages by the contractor to workman and it shall be the duty of the contractor to ensure the disbursement wages in the presence of such authorized representative.
73. 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 following form:
“Certified that the amount shown in column No---------- has been paid to the workmen concerned in my presence on -------- at ---------“
In our earlier posts reference to Rule 66,72and 73 has been done.The remaining Rules are referred to in this Post.
Please note that the whole idea of Contract Labour Regulation on this aspect is to ensure timely payment of Salaries and the Law has provided for such stringent provisions as there will be a tendency to avoid/delay the Salaries by Contractors to the Contract Employees.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
In case the Staffing or Temping Company engages women Employees and they are sent for work at the Clients place what are the special provision in the CLRA Rules on welfare measures for them?
Rule25. Of the CLRA Rules provides that Every licence granted under sub-section (1) of Sec. 12 shall be in Form VI.and (2) Every licence granted under sub-rule (11) or renewed under 29 shall be subject to the following conditions, namely:
(a) In every establishment where twenty or more women are ordinarily employed as contract labour, there shall be provided two rooms of reasonable dimensions for the use of their children under the age of six year
(b) one of such rooms shall be used as a play-room for the children and the other as bed-room for the children;
(c) the contractor shall supply adequate number of toys and games in the play¬room and sufficient number of -cots and bedding in the sleeping room;
(d) the standard of construction and maintenance of the creches shall be such as may be specified in this behalf by the Chief Labour Commissioner-(Central);
By the above provision in case the Staffing Agency employs 20 or more women the necessity of compliance of the above provision may be necessitated.
It is understood that implementation of the above provision is presently limited to Factories and the time when it is extended to all Establishments is not far off.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
In case the Staffing or Temping Company engages women Employees and they are sent for work at the Clients place what are the special provision in the CLRA Rules on welfare measures for them?
Rule25. Of the CLRA Rules provides that Every licence granted under sub-section (1) of Sec. 12 shall be in Form VI.and (2) Every licence granted under sub-rule (11) or renewed under 29 shall be subject to the following conditions, namely:
(a) In every establishment where twenty or more women are ordinarily employed as contract labour, there shall be provided two rooms of reasonable dimensions for the use of their children under the age of six year
(b) one of such rooms shall be used as a play-room for the children and the other as bed-room for the children;
(c) the contractor shall supply adequate number of toys and games in the play¬room and sufficient number of -cots and bedding in the sleeping room;
(d) the standard of construction and maintenance of the creches shall be such as may be specified in this behalf by the Chief Labour Commissioner-(Central);
By the above provision in case the Staffing Agency employs 20 or more women the necessity of compliance of the above provision may be necessitated.
It is understood that implementation of the above provision is presently limited to Factories and the time when it is extended to all Establishments is not far off.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any provision for issue of Temporary Certificate of Registration in the CLRA?
Yes where conditions arise in an establishment requiring the employment of contract labour immediately and such employment is estimated to last for not more than fifteen days, the principal employer of the establishment or the contractor, as the case may be, may apply for a temporary certificate of registration or license to the Registering officer or the licensing Officer.
Rule 32 of the CLRA Rules provide for handling this situation.
32. Grant of temporary certificate of registration and licence
(1) Where conditions arise in an establishment requiring the employment of contract labour immediately and such employment is estimated to last for not more than fifteen days, the principal employer of the establishment or the contractor, as the case may be, may apply for a temporary certificate of registration or licence to the Registering officer or the licencing Officer, as the case may be, having jurisdiction over the area in which the establishment is situated.
(2) The application such temporary registration or licence shall be made in triplicate in Forms VIII and X, respectively and shall be accompanied by a Demand draft drawn in favour of the Pay and Accounts Officer, Office of the Chief Labour Commissioner (Central), New Delhi showing the payment of appropriate fees and in this case of the licence appropriate amount of security also. -
(3) On receipt of the application, complete in all respects, and on being satisfied either on affidavit by the applicant or otherwise that the work in respect of which the application has been made would be finished in a period of a nature which could not be carried out immediately the registering Officer or the Licensing Officer as the case may be, sha1l forthwith grant a certificate of registration of Form, or a licence in Form XL as the case may be, for a period of not more than fifteen days.
(4) Where a certificate of registration or licence is not granted the reasons therefor shall be recorded by the registering Officer or the LicensIng 0fficer as the case maybe.
(5) On the expiry of the validity of the registration certificate the establishment shall cease to employ in the establishment contract labour in respect of which the certificate was given.
It is better for Staffing Companies and Principal Employers to apply for Temporary Registration when such need arises.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any provision for issue of Temporary Certificate of Registration in the CLRA?
Yes where conditions arise in an establishment requiring the employment of contract labour immediately and such employment is estimated to last for not more than fifteen days, the principal employer of the establishment or the contractor, as the case may be, may apply for a temporary certificate of registration or license to the Registering officer or the licensing Officer.
Rule 32 of the CLRA Rules provide for handling this situation.
32. Grant of temporary certificate of registration and licence
(1) Where conditions arise in an establishment requiring the employment of contract labour immediately and such employment is estimated to last for not more than fifteen days, the principal employer of the establishment or the contractor, as the case may be, may apply for a temporary certificate of registration or licence to the Registering officer or the licencing Officer, as the case may be, having jurisdiction over the area in which the establishment is situated.
(2) The application such temporary registration or licence shall be made in triplicate in Forms VIII and X, respectively and shall be accompanied by a Demand draft drawn in favour of the Pay and Accounts Officer, Office of the Chief Labour Commissioner (Central), New Delhi showing the payment of appropriate fees and in this case of the licence appropriate amount of security also. -
(3) On receipt of the application, complete in all respects, and on being satisfied either on affidavit by the applicant or otherwise that the work in respect of which the application has been made would be finished in a period of a nature which could not be carried out immediately the registering Officer or the Licensing Officer as the case may be, sha1l forthwith grant a certificate of registration of Form, or a licence in Form XL as the case may be, for a period of not more than fifteen days.
(4) Where a certificate of registration or licence is not granted the reasons therefor shall be recorded by the registering Officer or the LicensIng 0fficer as the case maybe.
(5) On the expiry of the validity of the registration certificate the establishment shall cease to employ in the establishment contract labour in respect of which the certificate was given.
It is better for Staffing Companies and Principal Employers to apply for Temporary Registration when such need arises.
Thanks & Regards
V.Sounder Rajan -
Advocates & Notaries -Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile :9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
In case a CLRA Licence is obtained for deploying Contract Labour and it specifies the number of persons to be employed can the Contractor deploy in excess of the number ?
Rule 25 II of CLRA Rules specifies the number of workman employee as contract labour in the establishment shall not, on any day, exceed the maximum number specified in the licence and when the licence is issued and specifies the numbers it cannot be exceeded .
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
In case a CLRA Licence is obtained for deploying Contract Labour and it specifies the number of persons to be employed can the Contractor deploy in excess of the number ?
Rule 25 II of CLRA Rules specifies the number of workman employee as contract labour in the establishment shall not, on any day, exceed the maximum number specified in the licence and when the licence is issued and specifies the numbers it cannot be exceeded .
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any responsibility for the Contractor to maintain canteen for the welfare of Contract Employees ?
Yes Rule 42 of the CLRA Rules prescribes on the provision of Canteens and reads like this.
42.—(1) In every establishment to which the Act applies and wherein work regarding the employment of contract labour is likely to continue for six months and labour numbering one hundred or more are ordinarily employed an adequate canteen shall be provided by the contractor for the use of such contract labour within sixty days of the date of coming into force of the rules in the case of the existing establishments and within sixty days of the commencement of contract labour In the case of the establishments of the employment
(2) If the contractor fails to provide the canteen within the time laid down the same shall be provided by the principle employer within sixty days of the expiry of the time allowed to the contractor.
(3)The canteen shall be maintained by the contractor or principal employer; as the case may be, in an efficient manner
43. (1) The canteen shall consist of at least a dining hall; kitchen, store room, pantry and washing places separately for workers and for utensils.
(2)(i) The canteen shall be sufficiently lighted at all times when any person has, access to it.
(ii) The floor’ shall be made of smooth and impervious material and inside walls shall be lime-washed or colour-washed at least once in each year
Provided that the inside walls of the kitchen shall be lime-washed every four months.
(3)(i) The precincts of the canteen shall be maintained in, a. clean and sanitary condition.
(ii) Suitable arrangements shall be made for the collection and disposal of garbage.
44.(1) The dining-hall shall accommodate at a time at least 30 percent of the contract labour working at a time.
(2)The floor area of the dining-hall, excluding the area occupied by the service in the counter and any furniture except tables and chairs shall be not less than one square metre per diner to be accommodated as prescribed In sub-rule (1). -
(3) (i) A portion of the dining-hall and service counter shall be partitioned off and reserved for women workers, in proportion to their number,,.
(ii) Washing places for women shall be separate and screened to secure private.
(4)Sufficient tables, stools, chairs or benches shall be available for the number of diners to be accommodated as prescribed in sub-rule (1).
45 (1) (i) There shall be provided and maintained sufficient utensils, crockery, cutlery, furniture and any other equipment necessary for the sufficient running of the canteen,
(ii)The furniture, utensils and other equipment. shall be and Hygienic condition.
(2) (1) Suitable clean clothes for the employees’ service in the canteen shall also be provided and maintained
(ii)A service -counter, if provided, shall have top of smooth and impervious material.
(iii) Suitable facilities including an adequate supply of hot water shall be provided for the cleaning of utensils and equipment.
46.The foodstuffs and other items to be served in the canteen shall be in conformity with the normal habits of the contract labour.
47 The charges for foodstuffs, beverages and any other items served in the canteen shall be based on “no-profit, no loss” and shall be conspicuously displayed in the canteen
48. In arriving at the prices of foodstuffs and other articles served in the canteen the following items shall not be taken into consideration as expenditure, namely’
(a) the rent for the land and buildings;
(b) the depreciation and maintenance charges for the building and ‘equipment provided for in the canteen;
(c) the cost of purchase, repairs and replacement of equipment including furniture, crockery, cutlery and utensils;
(d) the water charges and other charges incurred for lighting and ventilation;
(e) the interest on the maintenance of amounts spent on the provision and maintenance of furniture and equipment provided for canteen.
49. The books of accounts and registers and other documents used in connection with the running of the canteen shall be produced on demand to an inspector.
50.The account pertaining to the canteen shall be audited once every twelve months by registered accountants and auditors
Provided that the Chief Labour Commissioner (general) may approve of any other person to audit the accounts, if he is satisfied that it is not feasible to appoint a registered accountant and auditor i view of the site or the location of the canteen.
The Staffing Entity taking a CLRA Licence and employing contract or Temporary labour which is likely to continue for six months and contract labour numbering one hundred or more are ordinarily employed would require the above compliance.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any responsibility for the Contractor to maintain canteen for the welfare of Contract Employees ?
Yes Rule 42 of the CLRA Rules prescribes on the provision of Canteens and reads like this.
42.—(1) In every establishment to which the Act applies and wherein work regarding the employment of contract labour is likely to continue for six months and labour numbering one hundred or more are ordinarily employed an adequate canteen shall be provided by the contractor for the use of such contract labour within sixty days of the date of coming into force of the rules in the case of the existing establishments and within sixty days of the commencement of contract labour In the case of the establishments of the employment
(2) If the contractor fails to provide the canteen within the time laid down the same shall be provided by the principle employer within sixty days of the expiry of the time allowed to the contractor.
(3)The canteen shall be maintained by the contractor or principal employer; as the case may be, in an efficient manner
43. (1) The canteen shall consist of at least a dining hall; kitchen, store room, pantry and washing places separately for workers and for utensils.
(2)(i) The canteen shall be sufficiently lighted at all times when any person has, access to it.
(ii) The floor’ shall be made of smooth and impervious material and inside walls shall be lime-washed or colour-washed at least once in each year
Provided that the inside walls of the kitchen shall be lime-washed every four months.
(3)(i) The precincts of the canteen shall be maintained in, a. clean and sanitary condition.
(ii) Suitable arrangements shall be made for the collection and disposal of garbage.
44.(1) The dining-hall shall accommodate at a time at least 30 percent of the contract labour working at a time.
(2)The floor area of the dining-hall, excluding the area occupied by the service in the counter and any furniture except tables and chairs shall be not less than one square metre per diner to be accommodated as prescribed In sub-rule (1). -
(3) (i) A portion of the dining-hall and service counter shall be partitioned off and reserved for women workers, in proportion to their number,,.
(ii) Washing places for women shall be separate and screened to secure private.
(4)Sufficient tables, stools, chairs or benches shall be available for the number of diners to be accommodated as prescribed in sub-rule (1).
45 (1) (i) There shall be provided and maintained sufficient utensils, crockery, cutlery, furniture and any other equipment necessary for the sufficient running of the canteen,
(ii)The furniture, utensils and other equipment. shall be and Hygienic condition.
(2) (1) Suitable clean clothes for the employees’ service in the canteen shall also be provided and maintained
(ii)A service -counter, if provided, shall have top of smooth and impervious material.
(iii) Suitable facilities including an adequate supply of hot water shall be provided for the cleaning of utensils and equipment.
46.The foodstuffs and other items to be served in the canteen shall be in conformity with the normal habits of the contract labour.
47 The charges for foodstuffs, beverages and any other items served in the canteen shall be based on “no-profit, no loss” and shall be conspicuously displayed in the canteen
48. In arriving at the prices of foodstuffs and other articles served in the canteen the following items shall not be taken into consideration as expenditure, namely’
(a) the rent for the land and buildings;
(b) the depreciation and maintenance charges for the building and ‘equipment provided for in the canteen;
(c) the cost of purchase, repairs and replacement of equipment including furniture, crockery, cutlery and utensils;
(d) the water charges and other charges incurred for lighting and ventilation;
(e) the interest on the maintenance of amounts spent on the provision and maintenance of furniture and equipment provided for canteen.
49. The books of accounts and registers and other documents used in connection with the running of the canteen shall be produced on demand to an inspector.
50.The account pertaining to the canteen shall be audited once every twelve months by registered accountants and auditors
Provided that the Chief Labour Commissioner (general) may approve of any other person to audit the accounts, if he is satisfied that it is not feasible to appoint a registered accountant and auditor i view of the site or the location of the canteen.
The Staffing Entity taking a CLRA Licence and employing contract or Temporary labour which is likely to continue for six months and contract labour numbering one hundred or more are ordinarily employed would require the above compliance.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Whether there is any classification of workmen in the Model Standing Orders in respect of Industrial Establishment?
Yes ,SCHEDULE I of [MODEL STANDING ORDERS IN RESPECT OF INDUSTRIAL ESTABLISHMENTS provides the following :
2. Classification of workmen.--(a) Workmen shall be classified as --
(1) permanent,
(2) Probationers,
(3) badlis,
(4) temporary,
(5) casual,
(6) apprentices.
(b) A “permanent workman” is a workman who has been engaged on a permanent basis and includes any person who has satisfactorily completed a probationary period of three months in the same or another occupation in the industrial establishment, including breaks due to sickness, accident, leave, lock-out, strike (not being an illegal strike) or involuntary closure of the establishment.
(c) A “probationer” is a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months’ service therein. If a permanent employee is employed as a probationer in a new post he may, at any time during the probationary period of three months, be reverted to his old permanent post.
(d) A “badli” is a workman who is appointed in the post of a permanent workman or probationer who is temporarily absent.
(e) A “temporary workman” is a workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period.
(f) A “casual workman” is a workman whose employment is of a casual nature.
(g) An “apprentice” is a learner who is paid an allowance during the period of his training.
The import of the definition of “temporary workman” can be understood to be one who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Whether there is any classification of workmen in the Model Standing Orders in respect of Industrial Establishment?
Yes ,SCHEDULE I of [MODEL STANDING ORDERS IN RESPECT OF INDUSTRIAL ESTABLISHMENTS provides the following :
2. Classification of workmen.--(a) Workmen shall be classified as --
(1) permanent,
(2) Probationers,
(3) badlis,
(4) temporary,
(5) casual,
(6) apprentices.
(b) A “permanent workman” is a workman who has been engaged on a permanent basis and includes any person who has satisfactorily completed a probationary period of three months in the same or another occupation in the industrial establishment, including breaks due to sickness, accident, leave, lock-out, strike (not being an illegal strike) or involuntary closure of the establishment.
(c) A “probationer” is a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months’ service therein. If a permanent employee is employed as a probationer in a new post he may, at any time during the probationary period of three months, be reverted to his old permanent post.
(d) A “badli” is a workman who is appointed in the post of a permanent workman or probationer who is temporarily absent.
(e) A “temporary workman” is a workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period.
(f) A “casual workman” is a workman whose employment is of a casual nature.
(g) An “apprentice” is a learner who is paid an allowance during the period of his training.
The import of the definition of “temporary workman” can be understood to be one who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
Dear All
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any liability on the part of the Principal Employer to provide amenities like supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, to the Contract workers on failure by Contractor ?
Yes Rule 40.(1) of the CLRA Rules provide that the facilities required to be provided under Sec., 18 and 19 of the CLRA, namely provision of sufficient supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, shall be provided by the contractor in the case of existing establishment within seven days of the commencement of these rules and in the case of new establishments within seven days of the commencement of the employment of contract labour therein and sub rule (2) if any of the facility mentioned in sub-rule(1) is not provided by the contractor within the period prescribed the same shall be provided by the principal employer within seven days of the expiry of period in the said sub-rule.
Therefore on failure by the Contractor the principal employer becomes liable to provide amenities like supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, to the Contract workers.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
NEXT IMMEDIATE LEGAL QUESTIONS FOR INDIAN STAFFING OR TEMPING COMPANIES
Is there any liability on the part of the Principal Employer to provide amenities like supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, to the Contract workers on failure by Contractor ?
Yes Rule 40.(1) of the CLRA Rules provide that the facilities required to be provided under Sec., 18 and 19 of the CLRA, namely provision of sufficient supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, shall be provided by the contractor in the case of existing establishment within seven days of the commencement of these rules and in the case of new establishments within seven days of the commencement of the employment of contract labour therein and sub rule (2) if any of the facility mentioned in sub-rule(1) is not provided by the contractor within the period prescribed the same shall be provided by the principal employer within seven days of the expiry of period in the said sub-rule.
Therefore on failure by the Contractor the principal employer becomes liable to provide amenities like supply of Wholesome drinking water, a sufficient number of latrines and urinals, washing facilities and first-aid facilities, to the Contract workers.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
Mobile : 9025792684-9025792634
From India, Bangalore
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