A soap manufacturing company has decided to outsource the soap-making activity to a 3rd-party vendor. The 3rd-party vendor has taken the land on lease from a landowner. The 3rd-party vendor has set up the factory along with machinery purchased from the market. The 3rd-party vendor has engaged multiple contractors and has deployed the contract laborers in the manufacturing activity. The supervisory employees, such as shift officer, production manager, and factory manager, are employees of the soap manufacturing company and not of the 3rd-party vendor.
Question 1: Can this be a legally tenable arrangement as the management of the premises are employees of the outsourcing company?
Question 2: Can the contract laborers deployed in 3rd-party operations claim for permanency with the outsourcing company/soap-making company as their supervisors are employees of the soap-making company?
Question 3: Do you see any other challenges in this arrangement?
From India, Pune
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1Question 1: Can this be a legally tenable arrangement as the management of the premises are employees of the outsourcing company?
Question 2: Can the contract laborers deployed in 3rd-party operations claim for permanency with the outsourcing company/soap-making company as their supervisors are employees of the soap-making company?
Question 3: Do you see any other challenges in this arrangement?
From India, Pune
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