Is it mandatory for Company to give food for contract Employees? - CiteHR
Hr & Ir
Soft Skill Trainer / Hr Consultant - India
Consultant & G.m.
Vivian Chandrashekar
Aast. Gen. Manager-hr
Sr Manager Hr & Administration
Agm (p&a)
+1 Other

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Dear Seniors, Is it mandatory for Company to give food for contract Employees? Please Help. Regards Raghavendra B R
Dear Raghavendra
It is not mandatory to issue of food coupons/food facility to any of the employee, if it is factory you have to provide the Canteen facility as per Factory act. It has some limitations, need more clarification refer the act.

What is mandatory is to pay them minimum wages notified by the government as applicable to the class of contract workers working in your establishment. B.Saikumar Mumbai
It depends on number contract workers you are engaging. In AP service conditions of contract labour are regulated and accordingly welfare facilities need to be provided. Canteen is one such facility.
Dear Raghavendra,

Being a Principal Employer you have certain legal obligations towards them.

If you have your departmental canteen you should permit them to use the canteen. Even if you have some other arrangement for your regular employees, it should be extended to contract employees as well, may be at concessional rates.

Read this provision from CLRA Act:



16. Canteens.- (1) The appropriate Government may make rules requiring that in

every establishment--

(a) to which this Act applies,

(b) wherein work requiring employment of contract labour is likely to continue

for such period as may be prescribed, and

(c) wherein contract labour numbering one hundred or more is ordinarily

employed by a contractor, one or more canteens shall be provided and

maintained by the contractor for the use of such contract labour.

(2) Without prejudice to the generality of the foregoing power, such rules may provide


(a) the date by which the canteens shall be provided;

(b) the number of canteens that shall be provided, and the standards in respect of

construction, accommodation, furniture and other equipment of the canteens; and

(c) the foodstuffs which may be served therein and the charges which may be

made thereof."


Workman is workman what ever name you call i.e. regular, daily or contract. Ultimately work has to take place. When regular and contract does a same work, giving a food to regular workman and not giving food to contract will bring imbalance and in Maruthi plant it brought the plant to grinding halt for similar reasons.
It is also mandatory under ID Act and Contract Act to treat both equally.
Vivian Chanrashekar

Dear Raghavendra, I will only add to the right opinion expressed by Loginmiracle above. You need to provide canteen facility but not at subsidised rate. Best Regards Haragopal GM-HR SSPL, Hyderabad
Apart from all logics and rules and regulations, if the numbers are bare minimum, why not give food as a gesture... Direct or Indirect, he is a human being contributing to your organisation's growth. If he is a contract employee, then treat him like your guest.. Atithee devo bhava ! Let us be human beings first. All rules and regulations are formed by human beings only for safeguarding certain interests. These rules, regulations and guidelines can undergo change any time by an order of the establishment or by a decision of a court.
Why wait for such an occasion to guide you to change your principle !
Best wihses

Dear Raghavendra,
Re: Canteen to CL.
Pl.note this addl. provisions U/s.20 Chap.V of CLRA Act.:
"20. Liability of principal employer in certain cases.- (1) If any amenity required to be
provided under section 16, section 17, section 18 or section 19 for the benefit of the
contract labour employed in an establishment is not provided by the contractor within
the time prescribed thereof, such amenity shall be provided by the principal employer
within such time as may be prescribed.
(2) All expenses incurred by the principal employer in providing the amenity may be
recovered by the principal employer from the contractor either by deduction from
any amount payable to the contractor under any contract or as a debt payable by the
Also go thro' the following attachment (notification in 1971 reg.Canteen to CL among other stipulations)

Attached Files
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File Type: doc contactlabourAct-Text.notification.doc (211.5 KB, 23 views)

Dear Mr.Raghavendra,
In my opinion, there should not be any discrimination in providing food to employees, be it contract or confirmed employes. On the other hand to provide it under subsidy or free of cost is the management's discretion. Having said this as pointed out by one member, if you decide apply dual yardstick (subsidy/ free of cost) between contract/ confirmed employees, it may not be feasible for you to maintain the status for longer periods (Maruti incident).
Talk to your Management and resolve the issue by providing food to all employees using the same yardstick.

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