I am working as HR executive with a manufacturing company. Around 300 employees are outsourced on payroll of third party. Can you please let me know why are workers outsourced to third pary. what are the advantages of it.
Regards
Veena
From India, Hyderabad
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1Regards
Veena
From India, Hyderabad
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Hi Veena,
Usually Companies keep soem of the workers on the payrolls of third party to reduce the costs which are incurred to the company.
If the worker is on the pay rolls of the company, he will be eligible for all the welfare activities which the company do and in turn it will cost the company. They can even pay less amount in terms of salaries to the workers if they are on the pay rolls of the third party.
Outsourcing the workers is a great advantage to the company. Usually, Companies make a worker Permanent, if he does a great work and this permanent employement would make him to stay with the company for a longer time period.
Regards,
Gowtam
From India, Hyderabad
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Usually Companies keep soem of the workers on the payrolls of third party to reduce the costs which are incurred to the company.
If the worker is on the pay rolls of the company, he will be eligible for all the welfare activities which the company do and in turn it will cost the company. They can even pay less amount in terms of salaries to the workers if they are on the pay rolls of the third party.
Outsourcing the workers is a great advantage to the company. Usually, Companies make a worker Permanent, if he does a great work and this permanent employement would make him to stay with the company for a longer time period.
Regards,
Gowtam
From India, Hyderabad
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It is wrong perception workmen outsource on third party payroll, cost less or benefits are given less. You have to give all the minimum required benefits to the outsourced staff governed by the statutory, though contract employement is legal actually you can only take contract staff for those activities which are incidental to your main business and have no direct relation to main business.
Here company is benefited that if at any point of time that activity is stoped or gets redundant then you can cut down that staff at lower cost as they are not dierctly linked to the company. So we have to be very causious about how we use this provision of the law.
Thanks & Regards
Amal Shere
From India, Mumbai
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Here company is benefited that if at any point of time that activity is stoped or gets redundant then you can cut down that staff at lower cost as they are not dierctly linked to the company. So we have to be very causious about how we use this provision of the law.
Thanks & Regards
Amal Shere
From India, Mumbai
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Can anyone tell me what is the normal service charge charged by the entity providing these outsourcing services & what are their obligations? Regards, Nehal Ganatra
From India, Mumbai
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From India, Mumbai
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Dear Friends This Is raghu can sugest me how to develop a New Start up businees (i.e manpower consultants)
From India, Bangalore
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From India, Bangalore
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It is a wrong perception that workmen outsource on third-party payroll cost less or benefits are given less. You have to provide all the minimum required benefits to the outsourced staff governed by the statutory regulations. Although contract employment is legal, in reality, you can only hire contract staff for activities that are incidental to your main business and have no direct relation to the main business.
In this scenario, the company benefits because if at any point that activity is stopped or becomes redundant, then you can reduce that staff at a lower cost as they are not directly linked to the company. Therefore, we have to be very cautious about how we utilize this provision of the law.
From India, Bangalore
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In this scenario, the company benefits because if at any point that activity is stopped or becomes redundant, then you can reduce that staff at a lower cost as they are not directly linked to the company. Therefore, we have to be very cautious about how we utilize this provision of the law.
From India, Bangalore
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