Best Practices In Contract Labour Management - Minimum Wages - CiteHR
Rhari
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what are the best practices in contract-labour management ?
I work in a utility where large numbers of contract-labour are engaged.
we take care of minimum wages,pf,esi etc.
however the contractor does not always pay the laborers the full minimumwages. also it is not possible to cover all contract labour for pf & esi. say a contractor normally has work for 50 contract labourers through out the year while he has work for additional laborers say 10 for 2 or 3 months in the year. in such cases he does not take pf or esi cover for theses laborers.
issue is what is the best practice for these additional laborers ??
is it workmens' compensation insurance ? or personal accident insurance ?
what are the other issues here ?
r.hari

Hi,

The best practice in so far as employment of contract labour is concerned, is to ensure that the provisions of Contract Labour Regulation and Abolition Act and all other relevent laws applicable to contract labour are implemented.

If the contractor violates the provisions of Minimum Wages Act,Employees Provident Fund Act, or ESIC or Workmens compensation Act, you, as the principal employerwill be held responsible and liable.

You are required to witness the payment of wages to the contractors workers. Make sure that you check the payment sheet off and on and fix responsibility on the c ontractor. Even if the contractor worker is employed for a day and he meets with an accident, the contractor is liable to meet the statutory obligation.

It is advisable that while issuing Notification inviting tenders (NIT) for engagement of contractor, you clearly specify that he will have to comply with all statutory obligations. Ask the contractor to mention the EPF code.Make sure that you only deal with the contractor and donot supervise the work of contrct labour. Donot release the earnest money deposited with you, until he gives a certificate that he has cleared all the dues of the workers engaged by him

Cyril

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