1. Contract workers are working in our company for more then 240 days. They are working in housekeeping and canteen area. Can they claim permanency under ID Act.?
2. Can we employee contract labour on production activity? if yes, under which conditions? For howmany days?
From India, Pune
2. Can we employee contract labour on production activity? if yes, under which conditions? For howmany days?
From India, Pune
Dear
If the contract workman completes 240 days of working then his services can not be dispensed with in a simple manner. On termination he can raise a demand notice before the Conciliation officer of the area against the contractor if he have served the contractor for 240 days or more under the Industrial Disputes Act, 1947.
In my opinion if the work on which you want to employ contract labour then that operation/ process should not have been prohibited by the appropriate Govt. Therefore if the principal employer have obtain the Registration Certificate under the Contract Labour (R&A) Act, 1970 then you are allowed to employ contract labour on that work with valid licence.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
363If the contract workman completes 240 days of working then his services can not be dispensed with in a simple manner. On termination he can raise a demand notice before the Conciliation officer of the area against the contractor if he have served the contractor for 240 days or more under the Industrial Disputes Act, 1947.
In my opinion if the work on which you want to employ contract labour then that operation/ process should not have been prohibited by the appropriate Govt. Therefore if the principal employer have obtain the Registration Certificate under the Contract Labour (R&A) Act, 1970 then you are allowed to employ contract labour on that work with valid licence.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
In areas not directly connected to the core activities of business contract labour can be employed. Since housekeeping and work in canteen are not considered as core business activities there in nothing wrong in engaging contract labour for that functions. On the other hand, if you engage contract labour in production areas the concerned authorities can take steps to abolish it by order.
Permanancy of contract labour is not depended on how many days they work but it is mainly depended on whether the contract between the principal employer and the contractor is genuine or sham. If it is genuine and the contractor has obtained licence to engage contract labour then there is no question of contractor’s employees working with you claiming permanent employment with you. But on the otherhand, if the principal employer has complete supervision over the contractor’s employees in all respect and he has participated in any discussion related them like wage settlement or signed any agreement of settlement as one of the parties to it, the contract will be deemed to be sham and the employees of contractor will be eligible for permanancy.
This has been discussed earlier also. Please follow the link.
https://www.citehr.com/232682-break-...ml#post1042923
Regards,
Madhu.T.K
From India, Kannur
Permanancy of contract labour is not depended on how many days they work but it is mainly depended on whether the contract between the principal employer and the contractor is genuine or sham. If it is genuine and the contractor has obtained licence to engage contract labour then there is no question of contractor’s employees working with you claiming permanent employment with you. But on the otherhand, if the principal employer has complete supervision over the contractor’s employees in all respect and he has participated in any discussion related them like wage settlement or signed any agreement of settlement as one of the parties to it, the contract will be deemed to be sham and the employees of contractor will be eligible for permanancy.
This has been discussed earlier also. Please follow the link.
https://www.citehr.com/232682-break-...ml#post1042923
Regards,
Madhu.T.K
From India, Kannur
Dear Sir
Your question does not indicate the State in which your establishment is situate and in the case of your establishment whether the "appropriate Government" is the Central Government or the State Government. Subject to this observation my reply is as follows:
1.Contract Labour can be engaged in any process or activity if the engagement of contract labour in such process is not prohibited under the Contract Labour (Regulation and Abolition) Act.
2.If you engage contract labour after fulfilling the requirements of registration and license as provided for under the Contract labour (Regulation and Abolition) Act, you are not the employee of the contract labour so engaged. Therefore even if the contract labour complete 240 days of employment, they would be completing them under the contractor and not under you. Therefore no liability will be fastened on you with regard to those contract labour.
3.The Industrial Disputes Act 1947 does not talk about permanency of workmen. Therefore there can be no claim for permanency under the Industrial Disputes Act. However if there is any law which confers permanency in your Sate, then the provisions of those law will apply. In this case also, the contractor will be liable and not you as the principal employer.
V.HARIKRISHNAN
Joint Commissioner of Labour(Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
Your question does not indicate the State in which your establishment is situate and in the case of your establishment whether the "appropriate Government" is the Central Government or the State Government. Subject to this observation my reply is as follows:
1.Contract Labour can be engaged in any process or activity if the engagement of contract labour in such process is not prohibited under the Contract Labour (Regulation and Abolition) Act.
2.If you engage contract labour after fulfilling the requirements of registration and license as provided for under the Contract labour (Regulation and Abolition) Act, you are not the employee of the contract labour so engaged. Therefore even if the contract labour complete 240 days of employment, they would be completing them under the contractor and not under you. Therefore no liability will be fastened on you with regard to those contract labour.
3.The Industrial Disputes Act 1947 does not talk about permanency of workmen. Therefore there can be no claim for permanency under the Industrial Disputes Act. However if there is any law which confers permanency in your Sate, then the provisions of those law will apply. In this case also, the contractor will be liable and not you as the principal employer.
V.HARIKRISHNAN
Joint Commissioner of Labour(Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc