One of the good industrial organizations are enganging contract workers in the main production or manufacturing process for support to their regular workers. Is there any restrictions under the law for enganging such contract labour to the main production activity for any organization?
Also, if the contractor is not paying minimum wages as per the prescribed applicable minimum wages act . Is there any binding for the principal employer to pay the wage according to law? (or should have to pay the difference of the decided minimum wages and the actual paid wages by contractor)
Please advice in this regard...
In a garment manufacturing facility, the entire factory can be outsourced. i have noticed the same in one case, the core competency is "designing" ie artists/designers etc not fabrication of clothes.
for the wages section refer to articles on Contract labour posted in CiteHR.
As per Law, you cannot engaged contract labour directly on production line. The contract labour can be engaged in job which is connected to production like repair of machinery, installation of machinery, fabrication work , Civil, electrical work etc. Also, his job can be pernenial or casual nature.
if your contractor is not paying minimum wages, make him understand the law & put control on him. Ask him to pay or else, the Principal Employer is responsible to pay wages to labour.
depending on case to case basis, let us refer to the previous example of garment manufacturers wherein from "customs perspective" only stitching (tailors), cutting and inventory (fabric stores) records are relevant for a product to be considered as "Made in India".
some other jobs which are equally important/ core and perenial in nature like finishing/ washing etc fail to make it.
CLRA was formulated with one single idea in mind: regulating the lives of unorganised workers involved in construction. these people were hired for a project, had no social support and hazardous work conditions.
over the period of time the act has come to be applied everywhere.
Core and Non core activities are difficult to define for most companies. however the example of garment manufacturing firm which i have given perviously is US owned, the management belives creativity is the core proposition and rest all jobs are incidental to the core.
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