Industrial Relations And Labour Laws
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Hi Friends,
Need your suggestions on Staff outsourcing.
I m working in an manufacturing unit of a pharma company. We are planning to take some employees on Third Party Rolls. I havev some doubts as:
We will be taking employees on third party rolls and undergo a contract with this third party. Those employees will be working at our Plant on positions some of which may be of permanent nature. Will it be Legal to take outsourced staff on positions of permamnent nature as Contract labour Act states that we can not deploy contract labour on any posiotion of permanent nature????
Also if a person is working for more than 6 months on any position in a manufacturing plant he/she doesn't remain off rolls and becomes on rolls???
I'll be highly thankful for precious suggestions.
Pankaj Sharma.

From India, Patiala
It is not legal to engage employees through contractor on jobs of regular nature. But in the present style of running business many Corporate giants are doing the same, perhaps to avoid trade unions or similar problems. However, it is against the law to engage contract labour on core areas of activities. However, if a particular activity itself is outsourced, say, manufacturing of a kind of bearings, or wrapping or finished goods, or telemarketing, then it may be legal. But in a manufacturing industry how far it will be possible is to be looked into.

From India, Kannur

Please check out whether you can get a Certificate of Registration under CLRA for engaging the Contract Labour.If the Department is granting it then you can proceed.The procedure is :


Manner of making application for registration of establishments.―

(1) The application referred to in sub-section (1) of Section 7 shall be made
in triplicate Form I to the registering officer of the area in which the
establishment sought to be registered is located.

(2) The application referred to in sub-rule (1) shall be accompanied by a
treasury receipt showing payment of the fees at the rate prescribed in
Rule 26 for the registration of the establishment.

(3) Every application referred to in sub-rule (1) shall be either personally
delivered to the registering officer or sent to him by registered post.

(4) On receipt of the application referred to in sub-rule (1), the registering
officer shall, after noting thereon the date of receipt by him of the
application, grant an acknowledgement to the applicant.

Grant of certificate of registration.―

1) The certificate of registration granted under sub-section (2) of Section 7
shall be in Form II.

2) Every certificate of registration granted under sub-section (2) of Section 7
shall contain the following particulars, namely―
(a) the name and address of the establishment;
(b) the maximum number of workmen to be employed as contract
labour in the establishment;
(c) the type of business, trade, industry, manufacture or occupation
which is carried on in the establishment;
(d) such other particulars as may be relevant to the employment of
contract labour in the establishment.

(3) The registering Officer shall maintain a register in Form III showing the
particulars of establishments in relation to which certificates of
registration have been issued by him.

(4) If, in relation to an establishment, there is any change, in the particulars
specified in the certificate of registration, the principal employer of the
establishment shall intimate to the registering officer, within thirty days
from the date when such change takes place, the particulars of, and the
reasons for, such change and make an application for modification of the
registration certificate along with the fee prescribed for the purpose.

Please go through the process the solution/ rejection will come automatically.


From India, Bangalore
Hi Pankaj,
This is Astik from Evolve Technology & Services Pune, We provide staffing solution for Manufacturing industry, IT industry, Pharma, FMCG, Automobile, etc. We are provide Permanent solutions as well as contractual.
If you are looking for third party who can provide you very good manpower on contractual basis, then please contact me or share your requirements so that we can build a healthy relationship.
Thanks & Regards,
Astik Ilame
Evolve Technology & Services.
[email protected]

From India, Pune
Dear Pankaj,
There is no problem even if the staff is working for more then 6 months as he or she will be on my rolls till the time you need his or her services the contract which is signed between the client and the vendor all these are mentioned,
Do give me your contact number so that I could call you and guide you or you can call me on 9900824306 .
Thanks and regards
Anuj Jain

From India, Bangalore
Administrative work is also directly connected with the main activities of the company and therefore, you cannot engage contract labour in administration. f you write administrative work in the required column in the application for registration under the CLRA Act your application will be straight away rejected.

From India, Kannur
Dear Mr.Pankaj Sharma

Please indicate the appropriate Government under the Contract Labour (Regulation and Abolition) Act in respect of your industrial establishment. If in the case of your establishment, the State Government is the appropriate Government, please indicate the State in which your establishment is situated. Also please indidcate whether your State Government had carried out any amendments to the Contract Labour (Regulation and Abolition) Act incorporating the processes or activites or work in which contract labour should not be engaged. Also please indicate specifically whether Section 10 of the Contract Labour (Regulation and Abolition) Act had been amended by your State Government. A view on your first post and subsequent posts could be formulated only with the above required information. Please see section 10 of the CLRA Act. It gives power to the appropriate Government to prohibit employment of contract labour in any process operation or other work in any establishment. If such order is made by the appropriate Government then contract labour cannot be employed in such process or operation or other work of the establishment. Conversely if no such order prohibiting the engagement of contract labour is in existence, then the principal employer can engage contract labour. In some States, the State Governments have amended the CLRA Act prohibiting the engagement of contract labour in core activities. Certain States, for instance the State of Tamilnadu had not carried out any such amendments. Further the Central Government had prohibited the engagement of contract labour in certain processes, operations and other works. Certain State Governments have prohibited the engagement of contract labour in certain processes, operations and other works. Therefore I have sought the above mentioned information from you. I trust you would appreciate the reasons for asking for these information. Without these information it will not be possible for me to formulate a view on the query raised by you in your first post in this thread.

With regards

From India, Madras
I perfectly go with Mr.Hariharan. Apart from Andhra Pradesh no state government has expressly prohibited engaging contract workforce in the core activity of an organisation. regards
From India, Madras
Dear Sir,
Thanks fo ryour reply....
I m working in Himachal Pradesh. As far as my knoledge is concerned State Govt. has not made any such maendments in CLRA. One of the amendments which I have found is attached which doesn't indicate any orders. Please suggest.

From India, Patiala

Attached Files
File Type: pdf CLA(amendments).pdf (128.5 KB, 185 views)

Dear Mr.Pankaj Sharma
I presume that the appropriate Government in your case is the Himachal Pradesh Government. I have seen the notification uploaded by you. It is a notification issued by the Government of H.P. making certain amendments in the Contract Labour Rules. You say that as far as your knowledge goes there are no other amendments. Based on this information furnished by you, my view is that you can engage contract labour for the activities specified by you in your first post in this thread. Of course, in case the number of contract workers employed by you is twenty or more you have to register your factory under the CLRA Act. If the contractor employs twenty or more workers on contract then he has to take out a license under the CLRA Act.
With regards

From India, Madras
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