Industrial Relations And Labour Laws
Statutory Complaince/labour & Employment
Manager - Hr & Admin
RR Mohanty
Manager (hr & Admn)
+1 Other

Dear All,
I need clarification regarding contract labour, can employer engage contract labour directly without contractor, if yes what is the procedure for engage contract labour under contract labour regulation and abolition act, what are the pros and cons and how to pay the statutory contributions ( ESI , PF ect..), can these contributions paid under regular employees registration code.

From India, Hyderabad
If you are directly employing employees, then how does it come under the Contract Labour (Regulation & Abolition)Act?
The above Act will apply when you engage workers through a contractor. If you want to say that engaging workmen directly by you for a fixed period which is often referred to as contract workers, then your status will not be like that of a Principal employer under the CLRA Act but will be like an employer for other regular employees.
In both the cases, you can give PF and ESI registration under your company registration itself.

From India, Kannur
Sir, for regular / Direct Employees main Code and for Contract Labour can take Sub code. AP/PTC/62128 Direct Employees AP/PTC/62128/A for Contract Labour we follow in my Com. Reg, Sripad.K
From India, Karimnagar
Rightly Explained and said by Mr Madhu.
CL(R&A) Act, only became applicable when, the workers hired through third party/agency i.e contractors.
The Act shall not applicable to workers directly hired by the Employer for fixed term. And Employer need to comply with all social welfare legislation in respect of such workers also, in their own code.

Few Useful tips, that may help are:

 Do not supervise and control the workers of the other employer. You have no moral or legal right to control other’s workers.

 Learn to supervise the contract job not contract labour.

 Do not engage contractor as a mere figure or a sham contractor, merely as a devise to camouflage the status of contract labour.

 Do not recruit contract labour.

 Do not transfer contract labour.

 Do not send contract labour on tour.

 Do not terminate contract labour.

 Do not maintain muster roll of contact labour.

 Do not grant leave to contract labour.

 Do not give certificate of conduct of the contract labour.

 Do not employ contract labour on any activity of mutually agreed with your regular workers’ union under settlement/agreement under Industrial Dispute Act 1947. Under Rules 22(b) of CL(R&A) Rules, no licence is to be given to contract labour.

 Do not sign a settlement with trade union of contract labour under section 18(1) or 18(3) of Industrial Dispute Act, 1947. Do not negotiate with such unions.

 Always preserve a copy of the Muster Roll, Wage slip, Attendance slip or extracts from the Attendance Register

From India, Haora
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