Partner - Risk Management
Korgaonkar K A
Private Consultant On Labour Laws
Manager - Hr & Ir
+4 Others

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My company is the manpower recruitment agency and had recently signed a contract for providing contract labor for the purpose of entire packaging activity of the manufacturing unit is this type of work falls under prohibited contract labor work please guide me.
From India, Mumbai
Dear Vivek ji,
Our dear friend Govind ji is very correct. You can engage contract labours for packing job provided the said job is not carried out by the regular workers of the company.
Section 10 deals with prohibition of contract labour. According to this section, the central or state Govt. can prohibit any establishment from engaging contract labour, if:
i. The condition of work and benefit to contract labour are not satisfactory;
ii. The work is not incidental to or necessary for the business;
iii. The work is of not perennial nature;
iv. The work is done ordinarily by regular workmen; and
v. The work is sufficient to engage number of whole time workmen.

From India, Mumbai
Unless there is a conflict of interest? (better consult a lawyer.)
From Qatar
The packaging is not the core function.You can engage contract labour until the govt abolish it . the contract should not be sham one. BaseIndia Consultants Trivandrum 14 9961266966
From India, Thiruvananthapuram
Dear Mr Vivek,
Refer to your query what Mr.Korgaonkar suggest that is correct. The type of work is perennial or intermittent in nature and shall not abolish under the provisions of The CL (R & A) Act-1971.
Thanks & Regards
P.V.Rama Rao

From India, Chennai
Dear Vivek,

When you ask advise from senior members,it is always imperative to give the full facts of the case otherwise the advice rendered will be either partial or incorrect.Please give the information on these points;

(a) Since you have entered into an agreement/contract with the manufacturing unit ? As such, the manufacturing unit will be treated as Principal Employer and required to get himself registered with the appropriate Registering officer of the area under CL(R&A) Act, if he has more than 20 or more workers as contract labour working with him.If he has already taken registration,then he will have to include you in the list of the contractors under intimation to the registering officer.

(b) If your are deploying more than 20 or more workers as contract labour, you are required to take licence from the Licensing officer of the area.

(c) Please check if the packing is a regular work or interim work and it is not required to be done on regular basis.

(d) Packaging activity should not be the core activities of the manufacturing unit and should not have been done by the regular employees otherwise you need to pay them the same wages and perks as drawn by their regular employees.

(e) The appropriate Govt is empowered to prohibit any employment in general or particular employment in any establishment/ check if any notification has been published by the concerned State Govt. prohibiting the packing activities in general or otherwise.

BS Kalsi

Member since Aug 2011

From India, Mumbai
Irrespective of whether it is prohibited or note you have no additional liability It is the principal employer who needs to worry about these workers getting deemed status
From India, Mumbai
Dear All,
Packaging is part and parcel of normal manufacturing process.So logic of engaging contract labour is unclear.
Is it not a regular practise to pack manufactured goods? If the items to packed are only for a specific order and not a normal practise then Yes contractual labour can be employed otherwise as per provisions of rules NO.
Contractual labours are routinely employed by Co's as they are not paid as much as regular employees to cut cost and add to profit.
Also period of employement is to be kept in mind.Long duration means they have been employed in lieu of regular workers.
Few recent unrests have been due to this kind of practise.
Members have otherwise splelled out contingencies for contractual employment.
Col.Suresh Rathi

From India, Delhi
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