Dear all,
I am working for a company where contract labor is more. Can anybody let me know whether a contract employee can claim permanency? Can anybody provide me with supporting proof, please?
Thanks & regards,
H. Rao
From India
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1I am working for a company where contract labor is more. Can anybody let me know whether a contract employee can claim permanency? Can anybody provide me with supporting proof, please?
Thanks & regards,
H. Rao
From India
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Dear Mr. Rao,
Contract laborers can claim permanency if:
1) The contract is sham, bogus, or camouflaged. This means either a) the contractor does not hold a valid license b) it is merely a paper arrangement, but you directly pay the laborers of the contractor or c) you have direct supervision and control over the contract laborers.
2) Contract laborers can claim pay and benefits similar to those of your regular employees if:
a) In the same company, the set of regular employees is also engaged in the same type and nature of job carried out by the contract laborers.
3) The contract can be abolished if:
a) The state/central Contract Labor Advisory Board finds that the jobs carried out by contract laborers are of a perennial nature, and in the surrounding area and in similar industries, the same kind of jobs are being done by regular employees. The Board can issue a notification abolishing contracts in the entire industries of the region.
In such a case, the absorption of the existing contract laborers is not automatic. However, you will not be able to continue the jobs with contractors/contract laborers.
I hope this information is helpful.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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Contract laborers can claim permanency if:
1) The contract is sham, bogus, or camouflaged. This means either a) the contractor does not hold a valid license b) it is merely a paper arrangement, but you directly pay the laborers of the contractor or c) you have direct supervision and control over the contract laborers.
2) Contract laborers can claim pay and benefits similar to those of your regular employees if:
a) In the same company, the set of regular employees is also engaged in the same type and nature of job carried out by the contract laborers.
3) The contract can be abolished if:
a) The state/central Contract Labor Advisory Board finds that the jobs carried out by contract laborers are of a perennial nature, and in the surrounding area and in similar industries, the same kind of jobs are being done by regular employees. The Board can issue a notification abolishing contracts in the entire industries of the region.
In such a case, the absorption of the existing contract laborers is not automatic. However, you will not be able to continue the jobs with contractors/contract laborers.
I hope this information is helpful.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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Dear Yes,
Contract workers can ask to become permanent if they have been working continuously for 240 days without any break. According to the law, they can request to be considered for permanent employment. Therefore, with the concern of management and the HR head, the principal employer should ensure that every contract worker receives a minimum 1-month break from their work.
Thanks,
Ranjana C
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Contract workers can ask to become permanent if they have been working continuously for 240 days without any break. According to the law, they can request to be considered for permanent employment. Therefore, with the concern of management and the HR head, the principal employer should ensure that every contract worker receives a minimum 1-month break from their work.
Thanks,
Ranjana C
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Hello Mr. Rao,
The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act, 1970. Section 10 of the Act provides for the abolition of contract labour if they are engaged in work of a perennial nature or in work that shall be done by regular workmen. However, it is the appropriate government that alone is competent to notify the abolition of contract labour in an industry. But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authorities under the Industrial Disputes Act, 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real employer, i.e., the principal employer. Thus, there is no law entitling the contract labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims if the contract is a sham.
Hope I have made myself understood.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act, 1970. Section 10 of the Act provides for the abolition of contract labour if they are engaged in work of a perennial nature or in work that shall be done by regular workmen. However, it is the appropriate government that alone is competent to notify the abolition of contract labour in an industry. But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authorities under the Industrial Disputes Act, 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real employer, i.e., the principal employer. Thus, there is no law entitling the contract labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims if the contract is a sham.
Hope I have made myself understood.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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[QUOTE=saiconsult;2089198]Hello, Mr. Rao.
The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act, 1970. Section 10 of the Act provides for the abolition of contract labour if they are engaged in a work of entrepreneurial nature or in a work which shall be done by regular workmen. However, it is the appropriate government that alone is competent to notify the abolition of contract labour in an industry. But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authorities under the Industrial Disputes Act, 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real employer, i.e., the principal employer. Thus, there is no law entitling the contract labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims if the contract is a sham.
Hope I have made myself understood.
B. Saikumar
Hi, Mr. Saikumar has correctly explained the legal provision. One has to be careful that the cloak of contract labour is not used as a camouflage. In case it is established that the contract was sham, the employer runs the risk of making the worker permanent. The argument is that the worker was never a contractor worker.
Cyril
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From India, Nagpur
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The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act, 1970. Section 10 of the Act provides for the abolition of contract labour if they are engaged in a work of entrepreneurial nature or in a work which shall be done by regular workmen. However, it is the appropriate government that alone is competent to notify the abolition of contract labour in an industry. But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authorities under the Industrial Disputes Act, 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real employer, i.e., the principal employer. Thus, there is no law entitling the contract labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims if the contract is a sham.
Hope I have made myself understood.
B. Saikumar
Hi, Mr. Saikumar has correctly explained the legal provision. One has to be careful that the cloak of contract labour is not used as a camouflage. In case it is established that the contract was sham, the employer runs the risk of making the worker permanent. The argument is that the worker was never a contractor worker.
Cyril
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From India, Nagpur
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Hi,
In regard to the engagement of contract labor, one has to keep in mind three specific conditions. (1) Safe zone - This means the contract worker is engaged in jobs that are not permanent and perennial in nature. The workers are engaged for specific jobs, and upon completion, their contract is terminated. (2) Danger zone: when workers are engaged in jobs that are permanent and perennial in nature, and the contractor workers are performing jobs that are ordinarily done by permanent workmen. (3) Critical zone: where jobs being done by contractor workers come under the prohibited category.
The workers/unions can raise an industrial dispute in the case of (2) and (3) and claim that the contract was a sham one and that the workers were always the permanent workers of the establishment. The employer can also be penalized for engaging contractor workers in jobs falling under prohibited categories.
The nomenclature safe zone, danger zone, and critical zone are only for understanding the nature of employment. These terminologies are not used in any statute book.
Cyril.
From India, Nagpur
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In regard to the engagement of contract labor, one has to keep in mind three specific conditions. (1) Safe zone - This means the contract worker is engaged in jobs that are not permanent and perennial in nature. The workers are engaged for specific jobs, and upon completion, their contract is terminated. (2) Danger zone: when workers are engaged in jobs that are permanent and perennial in nature, and the contractor workers are performing jobs that are ordinarily done by permanent workmen. (3) Critical zone: where jobs being done by contractor workers come under the prohibited category.
The workers/unions can raise an industrial dispute in the case of (2) and (3) and claim that the contract was a sham one and that the workers were always the permanent workers of the establishment. The employer can also be penalized for engaging contractor workers in jobs falling under prohibited categories.
The nomenclature safe zone, danger zone, and critical zone are only for understanding the nature of employment. These terminologies are not used in any statute book.
Cyril.
From India, Nagpur
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Hi,
The contract labor engagement within the operations is a crucial piece of evidence that will entitle a contract labor claim permanency within an organization. The judicial judgments have considered different types of circumventing, direct, and peripheral evidence, documents, and other proofs to arrive at legal decisions as to whether a particular contract worker is deemed to be termed as permanent, and accordingly, cases are decided. For a safe understanding, take as many precautions as possible to ensure compliance under the Contract Labor Act, non-discriminatory practices, etc.
I have personally handled a very peculiar case to its finality in legal battles but cannot divulge the details herein.
Sanjay Jagtap M.COM, DBM, LLB, ACS ABHIRUTU CONSULTANTS +919822394170
From India, Mumbai
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The contract labor engagement within the operations is a crucial piece of evidence that will entitle a contract labor claim permanency within an organization. The judicial judgments have considered different types of circumventing, direct, and peripheral evidence, documents, and other proofs to arrive at legal decisions as to whether a particular contract worker is deemed to be termed as permanent, and accordingly, cases are decided. For a safe understanding, take as many precautions as possible to ensure compliance under the Contract Labor Act, non-discriminatory practices, etc.
I have personally handled a very peculiar case to its finality in legal battles but cannot divulge the details herein.
Sanjay Jagtap M.COM, DBM, LLB, ACS ABHIRUTU CONSULTANTS +919822394170
From India, Mumbai
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Hi,
In the Factories Act, the requirement for provision of a canteen is 'when 250 workers are ordinarily employed' by the organization. It may be clarified whether 'ordinarily employed' means the muster strength or the average working strength. An organization may have 270 workers on the roll, but on average only 220 workers are attending work on a daily basis. Is the employer obliged to provide a canteen in this case?
It may also be clarified whether the contractor workers employed by the organization will also be included to decide the working strength. In this case, there are 200 workers of the principal employer, and 70 workers are contractor workers.
Cyril
From India, Nagpur
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In the Factories Act, the requirement for provision of a canteen is 'when 250 workers are ordinarily employed' by the organization. It may be clarified whether 'ordinarily employed' means the muster strength or the average working strength. An organization may have 270 workers on the roll, but on average only 220 workers are attending work on a daily basis. Is the employer obliged to provide a canteen in this case?
It may also be clarified whether the contractor workers employed by the organization will also be included to decide the working strength. In this case, there are 200 workers of the principal employer, and 70 workers are contractor workers.
Cyril
From India, Nagpur
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Hi Ranjana,
I have gone through your reply. Please let us know under which Act/Regulation it is required for contract employees to complete 240 days continuously without a break to be eligible for a permanent job in the company. Until now, I have not come across this information, so please help upgrade our knowledge.
Regards,
Avinash K.
From India, Mumbai
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I have gone through your reply. Please let us know under which Act/Regulation it is required for contract employees to complete 240 days continuously without a break to be eligible for a permanent job in the company. Until now, I have not come across this information, so please help upgrade our knowledge.
Regards,
Avinash K.
From India, Mumbai
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