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Hi Seniors,
I would like to know the difference between On-rolls employees and Off-Rolls employees . What is the necessity to engage the employees in Off-Rolles. who are the contract employees ?
Please give me your valuable answers
Thanks & Regards,

From India, Gurgaon
Thank’s Kvthiru, All employees are doing similar Job ,Why are we consider as Off -rolls and On rolls? which industries / companies are take employees in Off-roll? Regards, prasad.
From India, Gurgaon
Taking further the above discussion,i would like to know that :-
1.Candidate having necessary experience is selected for an MNC(well known) ,but on "off roll".
2.The same candidate is selected for another firm which is small/ medium size company on "On roll"
Then which company the candidate should opt for?

From India, Pune
Law does not permit to substitute an on roll employee by off role or contract manpower
Contract manpower should not be related to production. This is for manufacturing industry.
Contract manpower can be assiting the production activity or supporting function.

From India, Mumbai
usually establishments employ directly persons on their rolls in activities of permanent and core nature.They cannot outsource those activities. However, there may be some work or activities which are only temporary nature or only incidental to the core activities and the establsihment may not find it feasible to have permanent staff to undertake such work and such jobs are assined to a contarctor who undertakes to execute them by hiring contarct labour. Trust the matter is clear now.

From India, Mumbai

Employees on company rolls are company employees.

Employees engaged through a Contractor are Contractor's Employees.

The subject is governed by Contract Labour (Regulation and Abolition) Act.

Kindly check this out to get your answers and if you yet have specific query, kindly do not hesitate to raise the same.

For the time being suffice it to say that this form offers two specific advantages:

1) Your wage cost is controlled as you do not have to pay anything more than the statutory Minimum Wage as applicable at any given point of time, and

2) You have flexibility to adjust your manpower to your business situation and not constrained by the Industrial Disputes Act 1947.

Disagreeing with some viewpoints, I state that you are free to engage contract labour even in direct production activities. The precautions you must take are:

1) Steer clear Sec. 10 of the said act which CAN prohibit your engaging contract labour under certain condition and after following a stipulated procedure.

2) Be absolutely compliant with labour law requirements.

Further, your engaging labour through contractor must not ever be sham or dishonest as a subterfuge to avoid engaging own labour. There are many more things that need to said on this topic but for the time being this response should suffice!



June 3, 2012


From India, Pune
Good morning to all
Could anyone please tell me what's the general tenure, which would adopt by the company, of transforming off-rolls employees to on-rolls employees.
Harminder Singh

From India, New Delhi
Dear Prasad ,
It is simple usually the on-roll employees are Permanent employees and off- roll employees are contract employees , they will be engagged by the contractor who will have direct controll on them. This practise is followed by many of small / medium industries. Some times the nature of work will be of seasonal one they will not be having the enough work through out the year ex. soft drinks will have great demand only in summer , but in winter and rainy sales is low . so in such a case the employer will hire the cotract workers in the peak season and in unseason there will be no work hence no contract. IF all the employees were on roll then the employer has to pay the wages and other benefits for them eventhough there is no work, no production. Hence they follow this system.
In some small organisation the employer will have on roll employees below 20 only in order to get exempt from PF AND remaining will be off - roll ie - contract employees

From India, Bangalore
If we are talking about a factory situation and PF/ESI are applicable to the factory, you will be required to extend these coverage to contractual employees also because under the factories act the definition of "worker" contractual employee are included. You have to do this if the "contractor" does not have independent registration/code numbers under these acts!
But if the "contractor" is independently covered under these acts, then in the first he is obliged under the act to extend coverage. You as a "principal employer" will have to ensure such a coverage-even if the labor/employees provided by the contractor are not your employees.
Trust the matter is clear and your query is answered.
June 4, 2012


From India, Pune
Thanks Sir for your clarification.
Our company is an IT company comes under Shop & Establishment Act. The main issue is that we have a pantry boy on third party payroll. He does not want PF, ESI deductions as he want more inhand salary. Can we hire him off roll & pay his salary directly in the form of cash with out any deduction. Would it be legally right? Waiting for your valuable response.
Thanks & regards,

From India, Delhi

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