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Respected sir This is Ramu working as Junior Manager-HR in manufacturing ( Textiles) unit at vijayawada. I need some guidelines on permanent category of workmen. Our company has started in the year 2008. We have 250 workmen onroll. Since the begining we are showing them as temporary category in our records. But we are fullfilling all the statory norms(PF, ESI,Bonus, Gratuity, minimum wages ). But we did not give any appointment orders. At per our records there is no permanent category of workmen.
How long we can continue them as temporary category? What are principles to follow make them as permanent category. I requested the seniors kindly give me your valuable suggesstion on this issue
With regards

From India, Vijayawada

The admissibility of statutory benefits like P.F, ESI and gratuity does not depend up on the status-(permanent or temporary) of workmen. It depends up on an employee qualifying the eligibility norms specified under each respective Act.Since your's is a manufacturing concern, it shall be covered by the Standing orders Act.1946.You must have framed standing orders for your establishment. If not the model standing orders framed by the State of A.P under the State Rules will be applicable.Usually the model standing orders of States contain a provision that if a workman is continued for 240 days of uninterrupted service(in non-seasonal establishments) in the preceding twelve months, he shall be made permanent.For example, the model standing orders under Bombay Rules contain such provision.Therefore verify the standing orders of your establishments,if any framed or the model standing orders of your State for this provision.

Besides this, some states like Tamil Nadu have passed Acts conferring permanency on workmen who complete 240 or 480 days of service. please verify whether the State of A.P has passed any such Act. If so it will be obligatory to comply with the Act.

This apart, Sec.25-B of the Industrial Disputes Act confers the status of permanency on the workmen who complete 240 days of service in the preceding twelve months because you can not terminate them without following the procedure under Sec.25-F of the Industrial Disputes Act 1947.

Thus you cannot indefinitely continue workmen on temporary basis.Please go through all the provisions and consult an expert/advocate on labour issues and take a call.




From India, Mumbai
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