Want to keep workers on contract with company payroll without making them permanent. Please suggest me suitable acts and formats.
From India, Pune
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Dear Umesh,

What do you hope to achieve with such actions? Are you trying to jeopardize the future of workers who have the potential to be regularized? It seems that way based on your post, doesn't it?

Firstly, it is important to understand that contract workers cannot be included on the company's payroll. Contract labor is governed by the Contract Labour Regulation Act, and there are no provisions for incorporating contract labor onto the company's payroll.

Thank you.

From India, Hyderabad
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Dear Umesh, As suggested by Venkata Vamsi Krishna, you can’t keep contract workers on company payroll. Ie. workers need to be on company payroll or they will be on 3rd party payroll.
From India, Bengaluru
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Dear colleague,

You need to explain what the purpose is behind this proposal. You can either have workers on a contract basis or on the company's payroll, but not both simultaneously.

Regards,
Vinayak Nagarkar
HR Consultant

From India, Mumbai
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Dear colleague,

You cannot put workmen on a contract basis in core and continuous nature activities of the factory for an indefinite period. You should clearly outline the requirements as simply as you would for the purchase of potatoes. This topic requires a detailed explanation, specifying where, why, and on what activities workmen will be engaged, to solicit suggestions from the knowledgeable members of the community.

Thank you.

From India, Mumbai
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Dear colleague,

Despite the risk of potential disputes associated with involving contract labor in core processes, many companies continue to engage them without any prohibitory orders from the government.

Regards,
Vinayak Nagarkar
HR Consultant

From India, Mumbai
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I am really surprised to see that, instead of managing human resources, some people still believe in their exploitation, forgetting the primary objective of the "Contract Labour (Regulation and Abolition) Act, 1970".

Anyways, you raised this question in HR fraternity seeking for help. Also, it's the decision of management to make. Surely, it is not legal, which please note.

This is how it goes: some companies do agreements with multiple labor contractors, and they keep shuffling the contract workers on their rolls without actually moving or disturbing the actual work. This shuffling is done only for the records; principle employers, however, remain the same. Giving a break of 1 or 2 months in between can also be done before shifting the worker from one roll to another.

Some companies also create such labor contractor (hope you understand what I mean). As for the nature of contractual work, it should be temporary.

From India, Pune
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