packiaraj83
31

Dear All, can i engage contract labour in Production, Please give your opinion, and give details which section deals about that. P.Packiaraj
From India, Bangalore
v.harikrishnan
169

Dear Mr.Packiaraj
According to the Contract Labour (Regulation and Abolition) Act and as interpreted by the Honourable Supreme Court, contract labour cannot be engaged in processes, where the engagagement of contract labour is prohibited.(My views are relevant for Tamilnadu. Position in other States I am not aware of.) Therefore please check whether the Government of Tamilnadu has prohibited the engagement of contract labour in the process in which you want to engage contract labour and then proceed.
With regards

From India, Madras
packiaraj83
31

Dear Sir,
I am presently working Chennai,
Contract Labour (Regulation and Abolition) Act, 1970 says that contract lobour prohibited only, there is no clause section for whether the contract lobour can engage in production process or not.
I could not find that which section says about contract lobour should not engage in production process.
Please help me to clarify this doubt sir.
Could I get your contact no sir.
P.Packiaraj
09842620246

From India, Bangalore
v.harikrishnan
169

Dear Mr.Packiaraj
The CLRA Act does not specifically say that contract labour can be engaged in processes(other terms are also used in Section 10 of the CLRA Act) in which they are not prohibited. However, Section 10 of the CLRA Act had been interpreted by the Honourable Supreme Court in a number of cases to mean that contract labour could be engaged in processes in which they are not prohibited. The leading case on this point is Steel Authority of India case. I am not sure about the citation for this judgment.
With regards

From India, Madras
sivahrd
Dear Fellow members,
As per my understanding, the contact labour should not be engaged in core production activities.
They may be engaged in non core activities and supporting activities of production.
eg. security, housekeeping, packing, loading & unloading etc.
K S Sivakumaar

From India, Bangalore
Madhu.T.K
4246

As per my understanding and experience in Kerala I think that engagement of contract labour in such areas of operation which are perennial in nature is prohibited by law. Section 10(1) of the CLRA Act empowers the Appropriate Authority to prohibit engagement of contract labour in a particular operation or job mainly on the following grounds.

1. When the process in which contract labour is engaged is identical to the the core area of operation

2. When the work in which contract labour is engaged is perennial in nature.

3. When the work in which contract labour is engaged is carried out by regular workmen in similar establishments in the same industry

4. When the work in which contract workers are engaged is of such duration that regular workers can be employed

In short if your so called operation is regular in nature in which some regular/ full time employees can be engaged, you are not supposed to engage contract labour.

The law being so, there are plenty of establishments which engage workers including clerical and even managerial personnel through contractors and the authorities who are responsible for prohibition of such engagement do keep silent. Certainly, in a few cases (as it has taken place in Kerala) the when the trade unions of the regular employees objected the same and was brought to the notice of the Labour authorities, some intervention have taken place. Therefore, if you really wish to work with a contractor in between, you can do so and so long as the matter is not taken up otherwise. And if taken up, you will be asked to discontinue it and you can do so then only.

Regards,

Madhu.T.K

From India, Kannur
rajanlawfirm
6

Dear

Please understand that the employment of Contract Labour by the Contractor is based upon the registration by the Principal Employer as per the following provision:

7. Registration of certain establishments.- (1) Every principal employer of an establishment
to which this Act applies shall, within such period as the appropriate Government may,
by notification in the Official Gazette, fix in this behalf with respect to establishments generally
or with respect to any class of them, make an application to the registering officer in the
prescribed manner for registration of the establishment:

Provided that the registering officer may entertain any such application for
registration after expiry of the period fixed in this behalf, if the registering officer is
satisfied that the applicant was prevented by sufficient cause from making the application
in time.

(2) If the application for registration is complete in all respects, the registering officer
shall register the establishment and issue to the principal employer of the establishment a
certificate of registration containing such particulars as may be prescribed.

Sec 9 deals with the effect of non -registration:

9. Effect of non-registration.- No principal employer of an establishment, to which
this Act applies, shall--
(a) in the case of an establishment required to be registered under section 7,
but which has not been registered within the time fixed for the purpose under that
section,
(b) in the case of an establishment the registration in respect of which has been
revoked under section 8, employ contract labour in the establishment after the
expiry of the period referred to in clause (a) or after the revocation of
registration referred to in clause (b), as the case may be.

12. Licensing of contractors.- (1) With effect from such date as the appropriate
Government may, by notification in the Official Gazette, appoint, no contractor to
whom this Act applies, shall undertake or execute any work through contract labour
except under and in accordance with a licence issued in that behalf by the licensing
officer.
(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain
such conditions including, in particular, conditions as to hours of work, fixation of
wages and other essential amenities in respect of contract labour as the appropriate
Government may deem fit to impose in accordance with the rules, if any, made
under section 35 and shall be issued on payment of such fees and on the deposit of
such sum, if any, as security for the due performance of the conditions as may be
prescribed.

Sec 13 deals with the grant of Licence to the Contractor :

13. Grant of licences.- (1) Every application for the grant of a licence under sub-section
(1) of section 12 shall be made in the prescribed form and shall contain the
particulars regarding the location of the establishment, the nature of process,
operation or work for which contract labour is to be employed and such other
particulars as may be prescribed.
(2) The licensing officer may make such investigation in respect of the application
received under sub-section (1) and in making any such investigation the licensing
officer shall follow such procedure as may be prescribed.
(3) A licence granted under this Chapter shall be valid for the period specified therein
and may be renewed from time to time for such period and on payment of such fees and
on such conditions as may be prescribed.

Form II of the the Contract Labour (Regulation & Abolition) Central Rules, 1971. provides for in Sl No 3. Nature of work in which contract labour is employed or is to be employed.The form reads like this :

FORM II
[See rule 18(1)]
Certificate of Registration

Date
Government of India
Office of the Registering Officer

A certificate of Registration containing the following particulars is hereby granted under sub-section (2) of Section 7 of the Contract Labour (Regulation & Abolition) Act, 1970, and the rules made there under, to………………………………………………. …………………………………………………………………………

1. Nature of work carried on in the establishment.
2. Names and Addresses of Contractors.
3. Nature of work in which contract labour is employed or is to be employed.
4. Maximum number of contract labour to be employed on any day through each contractor.
5. Other particulars relevant to the employment of contract labour.

Signature of Registering Officer with Seal.

Therefore if the Principal Employer gets the Certificate then the Contractor can deploy the contract labour in the permitted activity.

rajanlawfirm

Pls see https://www.citehr.com/285737-legal-...#axzz1WJ1p0i4f

From India, Madras
V. Balaji
100

You CANNOT engage contract labor in production. Jobs that are seasonal nature, you have no problem in engaging them. However, jobs that are perennial, you cannot have them. That is why it is called Contract Labour (Regulation and ABOLITION), Act.
The Act itself is meant to abolish the system of engaging contract labour in production and jobs that are continuous in nature.
Balaji

From India, Madras
chaturvedigirish
1

Dear All
Iam do agree with rajanlawfirm. If in your Licence it is clearly mention that job in factory in permanent in nature and you want to engage contract labour for that, you can go head for that.
thanks and regards
Girish N Chaturvedi


vkokamthankar
31

  • I agree with Mr. Madhu T K.
  • You can engage contract labor as long as it is not prohibited by concerned authority. Or One can stop using contract labor once it is objected to or prohibited by concerned authority.
  • In practice, contract labor is very commonly used in production and manufacturing and concerned authorities are routinely allowing the use of contract labor there by issuing and renewing contract labor licenses.
  • In very few cases where unionized workers object to engaging contract labor, authorities have restricted use of contract labor. But here also union's pressure on management works better than order or restriction from authority.
  • Fellow citehr members are requested to please confirm specific cases they know where use of contract labor was abolished or restricted by authority.

From India, Pune
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