Dear all,
As we all know, if we employ 20 or more employees on a contract, then we need to obtain the RC and License respectively under the Contract Labour Act.
So, my question is, if we employ executives or managers on a contract basis, will the Contract Labour Act still be applicable?
From India, Mumbai
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208As we all know, if we employ 20 or more employees on a contract, then we need to obtain the RC and License respectively under the Contract Labour Act.
So, my question is, if we employ executives or managers on a contract basis, will the Contract Labour Act still be applicable?
From India, Mumbai
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If your contract workforce exceeds 10 individuals, you need to have Registration Certificate (RC) and a license. When you hire executives and managers on a contract basis, you are not required to include them under contract workmen since their criteria are not covered under contract labor.
From India, Mumbai
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From India, Mumbai
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When to talk about contractual employment there are two type contractual employment, one directly hired by the company for a fix term appointment. in such cases, there is employer employee relationship between the employee hired and company and CLRA shall not be applicable to such employees.
secondly contractual employees hired through third party i.e service provider manpower agencies/job contracts etc, whatever be the nomenclature.
CLRA Act comes into play in second type of contractual employment means, when employee hired through the contractor/agencies. in such type to contractual manpower arrangment all complaince under CLRA Act & social legislation shall be followed.
The difination of workmen as enumerated under CLRA is clear if any person who has been hired under managerial or adimistrative capacity shall not be a workmen, as below-
(i) “workman” means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person—
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
any out worker.
now comming to the definition of contract labour as "a workman shall be deemed to be employed as “contract labour” in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer."
if we anylize both above difinations than if any personal even who has been hired as Manager/Suprevisor or in adminstrative capacity shall not be fall under definition of "Workmen" and "contract labour" under CLRA Act, and such employee not need to be named under CLRA License/registration. But be clear its not the nomeclature which define whether a person is workmen or not its the nature of duties assigned shall be sole criteria for certaining whether one is workmen or not.
But there may be technicalities as if you will hire someone as Manager in your establishment through agency or contractor, and we will either manage your workforce in your establishment, and we will control his working. then supervision and control factors may comes into existance and prove adverse in case of any dispute between your establishment.
From India, Delhi
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secondly contractual employees hired through third party i.e service provider manpower agencies/job contracts etc, whatever be the nomenclature.
CLRA Act comes into play in second type of contractual employment means, when employee hired through the contractor/agencies. in such type to contractual manpower arrangment all complaince under CLRA Act & social legislation shall be followed.
The difination of workmen as enumerated under CLRA is clear if any person who has been hired under managerial or adimistrative capacity shall not be a workmen, as below-
(i) “workman” means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person—
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
any out worker.
now comming to the definition of contract labour as "a workman shall be deemed to be employed as “contract labour” in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer."
if we anylize both above difinations than if any personal even who has been hired as Manager/Suprevisor or in adminstrative capacity shall not be fall under definition of "Workmen" and "contract labour" under CLRA Act, and such employee not need to be named under CLRA License/registration. But be clear its not the nomeclature which define whether a person is workmen or not its the nature of duties assigned shall be sole criteria for certaining whether one is workmen or not.
But there may be technicalities as if you will hire someone as Manager in your establishment through agency or contractor, and we will either manage your workforce in your establishment, and we will control his working. then supervision and control factors may comes into existance and prove adverse in case of any dispute between your establishment.
From India, Delhi
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