Hello Team, I am Avinash Kumar working with an organization under yearly contract terms, we get an appraisal every two years(average 10 to 15 % hike). My last appraisal was due in Sept 2013 but i was not given any increment stating the reason, that our positions will be outsourced to a resource outsourcing company and we will be given a good hike at that time.
This month the above said transition was done with the mutual negotiation among the management itself, but i was not even asked to negotiate the terms of my new joining/contact or appointment. I was simply forwarded a mail from the third party company with the offer letter, and the offered CTC is the same as the one i was already getting(i.e. without any increment).
I need suggestion from you on below queries :
1. Is the process which has been followed by my previous and present employer ethical?
2. Is there any clause which governs the percentage of share which is to be given to the employee(which is me in this case) on the basis of the payment made by outsourcing company(my previous org.) to the vendor company(current org.)?
3. If this is a malpractice, who is the culprit(client site or the vendor), can any steps be taken to confront the same?
Kindly suggest, what should be my next approach. And if any legal procedure is required kindly guide on the same.
From India
This month the above said transition was done with the mutual negotiation among the management itself, but i was not even asked to negotiate the terms of my new joining/contact or appointment. I was simply forwarded a mail from the third party company with the offer letter, and the offered CTC is the same as the one i was already getting(i.e. without any increment).
I need suggestion from you on below queries :
1. Is the process which has been followed by my previous and present employer ethical?
2. Is there any clause which governs the percentage of share which is to be given to the employee(which is me in this case) on the basis of the payment made by outsourcing company(my previous org.) to the vendor company(current org.)?
3. If this is a malpractice, who is the culprit(client site or the vendor), can any steps be taken to confront the same?
Kindly suggest, what should be my next approach. And if any legal procedure is required kindly guide on the same.
From India
Dear Avinash,
Have you spoken to your new or old management about your salary? I recommend you putting up application and explaining the situation. Have you done that? You may check the replies to your questions in italics:
1. Is the process which has been followed by my previous and present employer ethical?
Ethical or not, you should have been given salary increase. Your old management has let you down. Salaries of white collar workers who work on contract employment are fixed by principal employers. Contractor just adds his service charge on the salary fixed, nothing more than that.
2. Is there any clause which governs the percentage of share which is to be given to the employee(which is me in this case) on the basis of the payment made by outsourcing company(my previous org.) to the vendor company(current org.)?
No. How to do the business transaction is matter between two parties. Employees do not have any locus standi in between.
3. If this is a malpractice, who is the culprit(client site or the vendor), can any steps be taken to confront the same?
What is the nature of your industry? What is the nature of your work? What is your designation? Does your work fall within the purview of "core business" of the principal employer? If yes, then they cannot put you on contract. Contract employment is for non-core activities like housekeeping, security etc. Contract workers cannot do same type of work as that of regular ones.
Nevertheless, all said and done, would you like to court and fight your case? If you try doing that, within a day, principal employer will remove you on some or other reason.
Final Comments: - You have two options. Ask for the raise and continue whether principal employer agrees to give raise or not. If opt for this choice then better do it without grumbling. The second is to quit employment. For this take a call based on current industrial scenario.
Thanks,
Dinesh Divekar
From India, Bangalore
7879Have you spoken to your new or old management about your salary? I recommend you putting up application and explaining the situation. Have you done that? You may check the replies to your questions in italics:
1. Is the process which has been followed by my previous and present employer ethical?
Ethical or not, you should have been given salary increase. Your old management has let you down. Salaries of white collar workers who work on contract employment are fixed by principal employers. Contractor just adds his service charge on the salary fixed, nothing more than that.
2. Is there any clause which governs the percentage of share which is to be given to the employee(which is me in this case) on the basis of the payment made by outsourcing company(my previous org.) to the vendor company(current org.)?
No. How to do the business transaction is matter between two parties. Employees do not have any locus standi in between.
3. If this is a malpractice, who is the culprit(client site or the vendor), can any steps be taken to confront the same?
What is the nature of your industry? What is the nature of your work? What is your designation? Does your work fall within the purview of "core business" of the principal employer? If yes, then they cannot put you on contract. Contract employment is for non-core activities like housekeeping, security etc. Contract workers cannot do same type of work as that of regular ones.
Nevertheless, all said and done, would you like to court and fight your case? If you try doing that, within a day, principal employer will remove you on some or other reason.
Final Comments: - You have two options. Ask for the raise and continue whether principal employer agrees to give raise or not. If opt for this choice then better do it without grumbling. The second is to quit employment. For this take a call based on current industrial scenario.
Thanks,
Dinesh Divekar
From India, Bangalore
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