Contract Employees/Labour

Dear Friends,

Kindly let me know we had a person as a trainee - for 6 months in our co. & now we would like him to be on contract basis with us for 6 months or one year. He is 10th pass, has experience of 7 years & is a utility engineer .....job profile will be operations & maintenance of airconditioner, handle power generation & distribution system. Can we take him on contract, if yes then do we have a sal. break up or a consolidated amount? His salary will be something around 8000. Is taking employees on contract basis for possible? How do we go about it?

Thanks & regards,

Bhanu

Dear Friends,

Kindly let me know we had a person as a trainee - for 6 months in our co. & now we would like him to be on contract basis with us for 6 months or one year. He is 10th pass, has experience of 7 years & is a utility engineer .....job profile will be operations & maintenance of airconditioner, handle power generation & distribution system. Can we take him on contract, if yes then do we have a sal. break up or a consolidated amount? His salary will be something around 8000. Is taking employees on contract basis for possible? How do we go about it?

Thanks & regards,

Bhanu

Dear Friends,

Kindly let me know we had a person as a trainee - for 6 months in our co. & now we would like him to be on contract basis with us for 6 months or one year. He is 10th pass, has experience of 7 years & is a utility engineer .....job profile will be operations & maintenance of airconditioner, handle power generation & distribution system. Can we take him on contract, if yes then do we have a sal. break up or a consolidated amount? His salary will be something around 8000. Is taking employees on contract basis for possible? How do we go about it?

Thanks & regards,

Bhanu

Dear Bhanu

Have u issued offer letter as tainees? if yes, what contents mentioned in the offer letter? Pls let me know.

Regards
Sidheshwar
Bangalore

Dear Bhanu,

Yes you can keep him on Contract. Legally speaking there is no problem but he must have the necessary statutory qualifications to handle electrical work as he may be assigned (Like Supervisory License for Handling Transmission & Distribution Work).
As for his salary structure, if the person is not a worker as per your Payment of Wages Act vis -a - vis Rules, then the salary will not matter.

I would only like to add that the above will not be a problem if the letter issued to the trainee does not promise permanent status after successful completion.

Regards,
SC

Dear SC,

There is another criteria to employee contrcatual work. You know, you can't engage any contrcatual worker, if nature of work is permanent. As a company, you have to prove the post nature, if any authority seeks. You can do any thing in your premises but if any concerned govt officer is seeking clarification then you will have to clarify in professional way.

Regards
Sidheshwar

Dear Sidheswar,

As per the latest Supreme Court rulings, which you will find in the Labour Law Reviews or Labour Law Digests, the whole concept of permanent nature of job as given in the Contract Labour (R&A) Act, 1970 has been replaced by the concept of Core Activity. Hence a person cannot claim permanent nature of employment if the nature of the job is permanent but it is not a core activity.
For example in case of Security services which are now outsourced in most companies, is allowed because of this change.
Let me elucidate further, in my previous company our core activity was generation and distribution of electricity, but we were allowed to outsource Security, Canteen(Statutory as per Factories Act,194 and even Maintenance, because they did not classify as our Core activity.


Kind Regards,
SC

Hi
Dear SC

Good Morning,

I know the fact ie core activity but can u define both terms and are u able to satisfy the labour authority. If u r in electricity business, i m also in electricity distribution business. We have outsourced 2000 employees all over india. We are in manufacturing as well as project business. 25000 contract employees working with us. but question is to prove the criteria. I think that you are aware about our culture. We have outsourced following fields:
1) HR
2) Account
3) Admn
4) Engineers & Technicians
5) Housekeeping
6) Security
7) Canteen
Gardening
9) Maintenance
10) Auditing
11) Internet Service
12) Xerox service
Now you tell me, out of above all which are core activity and which are permanent? Pls reply.

Thanks & Regards
Sidhehswar
Bangalore
9844586572

Dear Siddeshwar,

Well, the first thing I would like to state is never ever allow your HR or Admin to be outsourced, as a matter of principle.
Well, every service you have mentioned can be outsourced depending on the nature of business. The core activity is decided on case to case basis.
For example in Electricity Generation, the Techincal personnel like Shift Engineers, Skillled workers like Boiler Plant Operator and Power(Turbine) Plant Operators, semi skilled workers like Assisitant Boiler Attendant, Assistant Power Plant Attendant, and unskilled workers like Shift Cleaners are directly related to the mother business i.e core activity while the person working in allied activities like Maintenance Foreman, Technicians and Maintenance mazdoors are not attached to Core activity but are involved in maintenance of machinery and plant can be outsourced.
So, it depends on case to case basis.
As for your list, they can all be outsourced except (4)
1) HR
2) Account
3) Admn
4) Engineers & Technicians - should be considered
5) Housekeeping
6) Security
7) Canteen
Gardening
9) Maintenance
10) Auditing
11) Internet Service
12) Xerox service

Regards,
SC

Dear SC,

I agreed with your opinion but how you present the things to the govt authority, its matter. For your kind info, we have 90% outsourced the engineers. Now days nothing is impossible. You can make possible everything by putting efforts. We can outsourced max but some special mind is required in documentation. If documentation is correct, every thing will be on way.

Thanks

Sidhu