Our organization is a factory (CPSU). Need guidance on the following:
1. We have given a contract to an agency for the job of inspecting materials at stores. The contractor has deputed an employee as an Inspector whose job will be to inspect materials and certify. Do they come under the CL(R&A) Act?
2. In our factory, the security part has been outsourced. The security agency pays their guards the wages at par with the minimum wages for the watch and ward category and DGR structure. However, nowhere is it mentioned whether the security guards are entitled to paid leave. Please guide whether the security guards on contract are to be paid leave with wages.
Regards,
DG
From India, Delhi
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41. We have given a contract to an agency for the job of inspecting materials at stores. The contractor has deputed an employee as an Inspector whose job will be to inspect materials and certify. Do they come under the CL(R&A) Act?
2. In our factory, the security part has been outsourced. The security agency pays their guards the wages at par with the minimum wages for the watch and ward category and DGR structure. However, nowhere is it mentioned whether the security guards are entitled to paid leave. Please guide whether the security guards on contract are to be paid leave with wages.
Regards,
DG
From India, Delhi
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Dear Saptarshi,
Answer to your queries is provided below:
1) The applicability of the Contract Labour Act is based on the number of contract staff. If the number of employees is 20 or more, then it will be applicable to you.
2) Firstly, security guards should be paid according to the "Security Board wages" and not by the Minimum wages. Secondly, they are also entitled to paid leave with wages.
From India, Mumbai
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Answer to your queries is provided below:
1) The applicability of the Contract Labour Act is based on the number of contract staff. If the number of employees is 20 or more, then it will be applicable to you.
2) Firstly, security guards should be paid according to the "Security Board wages" and not by the Minimum wages. Secondly, they are also entitled to paid leave with wages.
From India, Mumbai
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Dear Saptarshi,
Since Mr. Tushar has clarified that the Contract Labour (CL) Act is applicable only if the number of contract laborers is 20 or more, you need to approach the relevant authority to apply for a contract labor license and ensure compliance with the requirements of the act.
Secondly, security guards fall under the state act, and there is a provision in the state act for providing leave based on the total wages earned by them during the financial year.
Thanks & Regards,
Janardan
From India, Mumbai
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Since Mr. Tushar has clarified that the Contract Labour (CL) Act is applicable only if the number of contract laborers is 20 or more, you need to approach the relevant authority to apply for a contract labor license and ensure compliance with the requirements of the act.
Secondly, security guards fall under the state act, and there is a provision in the state act for providing leave based on the total wages earned by them during the financial year.
Thanks & Regards,
Janardan
From India, Mumbai
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The security agency organization comes under the Shops & Commercial Est. Act of the respective States. The guards are entitled to leaves, a weekly holiday, OT, etc., as per those Acts.
If the State Govt has fixed MW for Security staff separately as a scheduled employment, they shall be paid that MW, not the security board wages. If Security Services are not a scheduled employment in any state, the MW fixed for a Commercial establishment shall be paid to them subject to the conditions in that GO.
Email: varghese212832mail.com
Phone: 9961266966
From India, Thiruvananthapuram
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If the State Govt has fixed MW for Security staff separately as a scheduled employment, they shall be paid that MW, not the security board wages. If Security Services are not a scheduled employment in any state, the MW fixed for a Commercial establishment shall be paid to them subject to the conditions in that GO.
Email: varghese212832mail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Dear DG,
Regarding your query on the contract for inspection work, please proceed with the response provided by Tushar Ji.
My perspective on your second question, concerning security guards, differs. I understand you are based in Delhi. There is no Guard Board Act in Delhi. The leave policies for your security personnel should align with the leave regulations applicable to your factory. It is important not to differentiate between the outsourced security staff and the leave policies of your factory.
Thank you.
From India, Mumbai
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Regarding your query on the contract for inspection work, please proceed with the response provided by Tushar Ji.
My perspective on your second question, concerning security guards, differs. I understand you are based in Delhi. There is no Guard Board Act in Delhi. The leave policies for your security personnel should align with the leave regulations applicable to your factory. It is important not to differentiate between the outsourced security staff and the leave policies of your factory.
Thank you.
From India, Mumbai
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Dear DG,
Further to my above reply, I would like to say that your job of inspecting materials in stores on contract may fall under the category of "contract for service." If it is so, provisions of CLRA are not applicable.
What is "contract of service" and "contract for service" is discussed earlier in one of your threads, if I am not wrong.
From India, Mumbai
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Further to my above reply, I would like to say that your job of inspecting materials in stores on contract may fall under the category of "contract for service." If it is so, provisions of CLRA are not applicable.
What is "contract of service" and "contract for service" is discussed earlier in one of your threads, if I am not wrong.
From India, Mumbai
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Dear Koregaonkarji, Please put the light on What is "contract of service" and "contract for service". Regards, Dilip Nandanwar
From India, Mumbai
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From India, Mumbai
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Dear Dilip ji,
Kindly go through the below-given link in which one of the learned members of this forum, Mr. B. Saikumar, has nicely explained what a "contract of service" and a "contract for service" entail.
[Link to the article](https://www.google.com/url?q=https://www.citehr.com/41892-contract-service-contract-service.html&sa=U&ei=Op6SU_q-E4mokwW23YGgCw&ved=0CAkQFjAC&clien t=internal-uds-cse&usg=AFQjCNEwOHt_Xo-ORKFadp2COS3PE4yVGQ)
From India, Mumbai
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Kindly go through the below-given link in which one of the learned members of this forum, Mr. B. Saikumar, has nicely explained what a "contract of service" and a "contract for service" entail.
[Link to the article](https://www.google.com/url?q=https://www.citehr.com/41892-contract-service-contract-service.html&sa=U&ei=Op6SU_q-E4mokwW23YGgCw&ved=0CAkQFjAC&clien t=internal-uds-cse&usg=AFQjCNEwOHt_Xo-ORKFadp2COS3PE4yVGQ)
From India, Mumbai
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For this purpose I need to quote here how to know the Contract employee:; To know whether he is a contact Labour (CL) or not.
1) the workman a manual worker (Usk, Ssk, Sk, Hsk) or a technical worker or clerical in nature?
2)Employed in a Govt. Office/Dept. or a place where industry, trade, occupation, Business is carried on?
3)Employed by or through a contractor either for hire or reward?
4)Employer (Contractor) undertaken to provide a given result to an establishment or agree to supply CL .
5)Employed by the contractor exclusively in connection with the work of a particular establishment.
6)Master servant relationship between the employer (Contractor) and his workman (CL)
7)Does he accept this Master’s right to supervise & control him or his works at his sweet will
8) Is he an out worker?
9)Is he engaged by his employer for supplying of only goods or articles of an manufacture establishment?
10)Is the work of the establishment either intermittent or casual in nature (within 3 months)?
11)Is he engaged on Managerial or Adm. Or supervisory work?
12)Is he transfer from another office/project of the same contract/establishment?
13)Is his employer putting him to work for some other establishment at the same time?
14)Is he coming to the establishment as a part of his duty assigned to him be a contractor engaged by another establishment?
Please check the above points
Sitansu Sekhar Rath
Senior Manager
M/s Odisha Power Generation Crop. Ltd
Bhubaneswar.
From India, Delhi
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1) the workman a manual worker (Usk, Ssk, Sk, Hsk) or a technical worker or clerical in nature?
2)Employed in a Govt. Office/Dept. or a place where industry, trade, occupation, Business is carried on?
3)Employed by or through a contractor either for hire or reward?
4)Employer (Contractor) undertaken to provide a given result to an establishment or agree to supply CL .
5)Employed by the contractor exclusively in connection with the work of a particular establishment.
6)Master servant relationship between the employer (Contractor) and his workman (CL)
7)Does he accept this Master’s right to supervise & control him or his works at his sweet will
8) Is he an out worker?
9)Is he engaged by his employer for supplying of only goods or articles of an manufacture establishment?
10)Is the work of the establishment either intermittent or casual in nature (within 3 months)?
11)Is he engaged on Managerial or Adm. Or supervisory work?
12)Is he transfer from another office/project of the same contract/establishment?
13)Is his employer putting him to work for some other establishment at the same time?
14)Is he coming to the establishment as a part of his duty assigned to him be a contractor engaged by another establishment?
Please check the above points
Sitansu Sekhar Rath
Senior Manager
M/s Odisha Power Generation Crop. Ltd
Bhubaneswar.
From India, Delhi
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Dear Mr. Saptharshi,
I hope that your query has been answered by Mr. Varghese Mathew. Please follow the same, which is the right way. Please note that if the contract workers' strength exceeds 20 or more on any working day, you must comply with the provisions of the Contract Labour Act.
Thanks to Mr. Varghese Mathew.
Adoni Suguresh, Sr. Executive (Personnel, Administration & Industrial Relations) Labour Laws Consultant
From India, Bidar
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I hope that your query has been answered by Mr. Varghese Mathew. Please follow the same, which is the right way. Please note that if the contract workers' strength exceeds 20 or more on any working day, you must comply with the provisions of the Contract Labour Act.
Thanks to Mr. Varghese Mathew.
Adoni Suguresh, Sr. Executive (Personnel, Administration & Industrial Relations) Labour Laws Consultant
From India, Bidar
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Thank you all for your replies. Actually, the applicability of the CL Act is a matter that needs to be taken care of on a case-by-case basis, depending on the nature of the work. Recently in our organization, a few Safety Officers have been deployed through an agency to oversee safety issues and handle necessary reporting with recommendations. They are covered by PF & ESI, but they are not complying with the provisions of the CL Act. The question here is whether these Safety Officers fall under the purview of the definition of workmen under the CL Act.
Regards,
DG
From India, Delhi
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Regards,
DG
From India, Delhi
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As per the definition of 'workmen' in the CLRA Act, supervisory persons drawing a salary above Rs 500 per month or exercising managerial functions are not considered workmen. Therefore, you should assign them supervisory or managerial work.
Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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I have corrected the spelling, grammar, and paragraph formatting in the user's input to enhance clarity and readability.
From India, Delhi
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From India, Delhi
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I understand the area of concern related to outsourcing any statutory post to an agency. However, I still have doubts about issues such as personnel deployed by agencies for jobs like inspection of materials or safety surveillance being covered under the definition of 'workmen' as per the CL(R&A) Act.
Rgds,
DG
From India, Delhi
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Rgds,
DG
From India, Delhi
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Dear DG,
According to my view, personnel deployed by agencies for jobs like Inspection of materials or Safety surveillance will not be covered under the definition of 'workmen' under CLRA Act since such kind of contracts are of the category of “Contract for Service" in which independent person provides his skill with tools and human resources and accomplish a specific job in specific duration without supervision and control by principal.
In my view, a person who undertakes such job is not a “Contractor” as defined under CLRA Act. He is basically not producing any result through contract labour. He is producing the result himself with the help of his tools and human resources.
One can differ with my views.
From India, Mumbai
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According to my view, personnel deployed by agencies for jobs like Inspection of materials or Safety surveillance will not be covered under the definition of 'workmen' under CLRA Act since such kind of contracts are of the category of “Contract for Service" in which independent person provides his skill with tools and human resources and accomplish a specific job in specific duration without supervision and control by principal.
In my view, a person who undertakes such job is not a “Contractor” as defined under CLRA Act. He is basically not producing any result through contract labour. He is producing the result himself with the help of his tools and human resources.
One can differ with my views.
From India, Mumbai
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There is a provision for paid leave of 1% in the wage structure of security guards. Can anyone clarify for how many days this 1% of wages is meant and which are these days? I believe these are meant to cover 3 National holidays, i.e., 15 Aug, 26 Jan, and 2nd Oct.
From India, Pune
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From India, Pune
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Maharashtra Private Security Guards Regulation of Employ Welfare Act 1981.doc
Contract Labour Act.zip