Is it allowed to keep maximum employees on contract basis or by ousource basis? When a company wants to keep very less on roll employees? What the Factory Act Says about it?
From India, Delhi
Acknowledge(0)
Amend(0)
1From India, Delhi
Acknowledge(0)Amend(0)
Dear Vilom,
There is no restriction on the number of contract laborers that can be deployed in the factory premises as per the Factories Act of 1948; however, all of them would be considered as 'workers'. The restriction on the deployment of contract labor comes from the Contract Labor (Regulation & Abolition) Act, which makes it illegal to deploy contract labor in prohibited trades. I hope that your business does not fall under any such prohibited trade. Many organizations have a majority of contract workers, but whether this is a good practice or not remains a debatable point.
KK
From India, Bhopal
Acknowledge(0)Amend(0)
There is no restriction on the number of contract laborers that can be deployed in the factory premises as per the Factories Act of 1948; however, all of them would be considered as 'workers'. The restriction on the deployment of contract labor comes from the Contract Labor (Regulation & Abolition) Act, which makes it illegal to deploy contract labor in prohibited trades. I hope that your business does not fall under any such prohibited trade. Many organizations have a majority of contract workers, but whether this is a good practice or not remains a debatable point.
KK
From India, Bhopal
Acknowledge(0)Amend(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.