Hello All, Could any one guide me that what is the rules of leave for contract employees. Also requested to you to share the circular ,section & rule no against this. Thanks & Regards Pankaj Kr. Das
From India, Gurgaon
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All workmen/employees engaged through any contractor are workers under the relevant provisions of labor legislation. They are governed by the same rules as are applicable to other workers/employees in the respective law.

For example, a worker in the Factories Act includes contract workers as well, and they are eligible for one day of paid leave for every 20 days worked. They must also have completed 240 days or two-thirds of the working days.

Similarly, the provisions in the Shops and Establishments Act are applicable in establishments where contract employees are engaged.

National and Festival Holidays are also applicable to them.

If an organization is extending more benefits, then those benefits need not be extended.

Contract workers are eligible for all statutory benefits. The only difference between a contract worker and a regular employee is that the benefits over and above the statutory benefits extended to regular employees are not applicable to these workers.

Even this interpretation is not 100% correct as there are many employments that are banned by concerned State Governments from engaging contract workers.

From India, Chennai
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    (Fact Checked)-The user reply is correct. It accurately explains that contract employees are entitled to statutory benefits, including leave, as per relevant labor legislation and specific acts like the Factories Act and Shops and Establishments Act. Thank you for providing a comprehensive overview. (1 Acknowledge point)
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  • Dear Mr. T. Sivasankaran,

    Thank you for your guidance. I have another query – could you please suggest and share any circular or rule related to this?

    "A contract employee has the right to appeal for a permanent job with the principal employer after a certain period of continuous service as a contract employee under the principal employer."

    Thank you.

    From India, Gurgaon
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    From India, Chennai
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  • CA
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    (Fact Checked)-The information provided in the user reply is mostly accurate. However, there are a few points that need clarification and correction based on labor laws and practices. 1. Contract employees can appeal for permanent employment under certain conditions, especially if there is no prohibition by the State Government. It is essential to comply with relevant labor laws and regulations in this regard. 2. The recommendation on maintaining a specific percentage of contract and temporary workmen is a good practice to balance workforce needs, but it should also align with the legal requirements and fair employment practices. 3. Nepotism and malpractices should be strictly avoided in recruitment and engagement processes to ensure fairness and compliance with labor laws. Overall, the response provides valuable insights into the ethical considerations and legal aspects of employing contract workers. amendment: false (1 Acknowledge point)
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  • good evening to all the above case is for factory workers. what will be the leave rules (PL/EL/SL/CL) for contract employee engaged in any office establishment? Plz advise. With regards Akash
    From India, Ahmadabad
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    Please check the Gujarat State Shops & Establishment Act/Rules for your guidance. (Though there is no separate Gujarat Act, the Bombay Shops & Estt. Act 1948 applies to Gujarat as well.) The Gujarat Government indicates that establishments not covered under the Factories Act have to be registered under the Shops & Establishments Act. The gist of the act is attached for your reference.

    Kumar.S.

    From India, Bangalore
    Attached Files (Download Requires Membership)
    File Type: doc Bombay & Gujarat shops & estt.act. Labour Laws.doc (39.0 KB, 1022 views)

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    Dear Mr. Sivasankaran,

    I am working in a central corporation that has turned into a wholly-owned government of India Ltd. company. For the last couple of years, we have started recruiting contract-rated staff to do the same job as permanent staff. However, these contract staff only receive 8 days of holiday for religious/national festivals, whereas permanent staff receive 15 such holidays. Is this legally correct?

    Thank you.

    From India, New Delhi
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    From India, Chennai
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    Hi T. Sivasankaran,

    Thank you for sharing your views. I am currently in a similar situation, where I am on third-party payroll which ended in January 2013, and there has been no communication between the company and the third-party provider.

    I am unsure whether it is necessary to bring the individual onto the company's payroll during an appraisal or at the end of the contract period. Your guidance on this matter would be greatly appreciated as I am feeling quite confused.

    Thank you.

    From India, Pune
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  • CA
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    (Fact Checked)-Great insights shared! To ensure clarity: Contract employees are entitled to specific leave benefits as per their contract & labor laws. For transitioning from third-party payroll, legal and HR compliance is crucial. Appraisal timing doesn't dictate the need for permanent employment. Stay informed and seek guidance from HR. Thank you for sharing your concerns and seeking guidance. Your proactive approach is commendable. (1 Acknowledge point)
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  • Mr. Sivasankaran,

    Although I am in West Bengal, our operations are on an all-India basis, and the number of national holidays is the same. Only the festivals are different. For example, Onam in Kerala and Durga Puja over here. Can this be a result of a management/union agreement?

    Thank you.

    From India, New Delhi
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    From India, Chennai
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    (Fact Checked)-[response] (1 Acknowledge point)
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  • Anonymous
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    is it mandatory to pay contact workers on 26th Jan, 1st May, 15th Aug and Diwali?? I am from Maharashtra.
    From India, Nasik
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    (Fact Checked)-The information provided is incorrect. According to the Payment of Wages Act, workers are entitled to receive wages on national and festival holidays. It is mandatory to pay contract workers on 26th Jan, 1st May, 15th Aug, and Diwali in Maharashtra. (1 Acknowledge point)
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  • If you are engaging manpower on the festival holiday, You have to pay one additional wages otherwise you have give him comp. off. Preferably one should pay if engaged.
    From India
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    Anonymous
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    Hello sir,

    We are contractual labor at ESIC Sub-Regional Office Barrackpore. We have been working as housekeeping staff for the last 9 to 10 years at this location. Our main employer is ESIC Sub-Regional Office Barrackpore, which is a Central Government office. Every year, tenders are opened or extended on behalf of service providers or service agencies for the services. Usually, every two to three years, the service provider changes, but we have continued to work in the same capacity as housekeeping staff.

    Our query pertains to our eligibility for gratuity and our desire to secure a permanent position within this Central Government office as a housekeeping staff or safaiwala. We seek guidance on the best course of action for our future. If we are eligible to apply for a permanent position, we would like to know the appropriate authority to approach, whether it is the Labor Court, the Judiciary Court, or the Labor Department of the Central Government.

    Your assistance in this matter would be greatly appreciated. Thank you.

    From India, Kolkata
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    if we have taken employees on contract for 2 year then statutory compliance are important ? please suggest.
    From India, Mumbai
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    (Fact Checked)-[response] @if a contract employee is engaged for 2 years, statutory compliance is indeed crucial. It's important to adhere to all legal requirements during their tenure. (1 Acknowledge point)
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  • Hi Team, Good evening to all, what is the leave rules for SL and CL for contract employee? is contract employee eligible for CL and SL leave. kindly guide. Rama Maharashtra
    From India, Pune
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