PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Sr. Manager-hr &ir
Sr.manager Hr & Legal
Korgaonkar K A
Manager- Hr Compliance
I am working in Pharma Company as Manager-HR &Admin. We have company staff of around 200 staff. Apart from that we are having contract labour. In contract, as a principle employer, we have got permission from IF for 180 staff. If the limit is exceeded some time for some additional work. In that case, is it necessary to increase the staff limit being provided by Contractor from IF. If do so, is there any violation for such additional staff.
As per Factory Act, company should have canteen facility where the staff strength is more than 250. Since, our company staff strength is around 200, we are not having Canteen so far. The contract labour will be taken into account for the above parameter, then the staff strength is more than 250.
Please advise 1. Can we ask the contractor to increase the labour strength i.e more than 180? 2. We have to open canteen at any cost?
From India, Madras
korgaonkar k aDear Karun ji,
You raised two issues here. One is, I suppose, partaining to Insurance Fund under EPF&MP Act 1952 and another is pertaining to Factories Act 1948.
Your first issue is not clear to me. I just highlight the section 17(2A) of the Act pertaining to exempt any establishment from the operation of IF, for your perusal, as under:
This section permits the Central Govt., subject to specified conditios, to exempt any establishment from operation of all or any of the provisions of the scheme if employees of such establishments are, without making any ssperate contribution or payment of premium, in enjoyment of life insurance benefits which are more favorable.
Are you making compliance of your contract labours under your code and are in enjoyment of life insurance benefits? If yes, you need to apply for revision in exemption accordingly if the contract labours
Your second issue is pertaining of FA. You are advised to read the definition of "worker" as defined in section 2(l) which includes contract labour also. No staff is defined in FA. So on case total employees more than 250 including of contractor's, canteen is mandatory.
Hope you as a HR Manager not testing the knowledge of contributing members like me of this forum.
From India, Mumbai
anilvsharmaDear Mr. Karunakaran
Greetings of the Day
As a HR Manager ,you must be fully conversant about the statutory obligations / responsibilities as a Principal Employer(PE) in any manufacturing industry.
Anyway, you have asked two queries :
1. Regarding IF ? Can u explain what it mean ? Then your query will be addressed suitably.
2. Regarding Canteen Facility : As per provisions of The Factories Act,1948 , Sec - 46 ,it is clearly mentioned that any factory wherein more than two hundred and fifty workers are ordinarily employed , a Canteen or canteen shall be provided and maintained by the occupier for the use of the workers.
Not only canteen , as a PE you have to strictly adhere to other statutory provisions of the said Act .
Who are considered as Workers ? It is clearly mentioned in the said Act that WORKERS means a person ( employed , directly or by or through any agency ( including a Contractor/Sub contractor) with or without the knowledge of the Principal Employer................ ( For full detail pls refer the said Act).
From India, Pune
ceramic anbalaganDear Karunakaran,
When the number of contract workmen exceeds the appoval of the Inspector of Factories, strictly speaking, it is to be iniformed to the IF.
For the calculation of number of Employees, the Employees entered in Form-1 are to be taken.
From India, Tiruchchirappalli
korgaonkar k aDear Anbalagan ji,
I have not understood what you said. Can you elaborate with relevant provisions?
If I do not understand any post after my response, I just ignore it. But in this case, I thought of question you.
From India, Mumbai
insinghmaDear Mr. Karunakaran,
Firstly i am unable to understand what you want to know. As per my understanding you want to know two things:
1. Engagement of Contract Labour
2. Canteen Facility
The answer is as under:
1.Engagement of Contract Labour: For employing the contract labour P.E. needs to get the Certificate of Registration under the Contract Labour (R&A) Act, 1970 from the Registering Officer under the act. Once PE gets the R.C., he can engage contract labour thru contractors who are required to take the license from the licensing officer i.e. ALC, DLC, if they want to employ 20 or > 20 contract labours on any day. If you want to engage more contractors or contract labours, you can engage it but the change in particulars of contract labour should be notified to the Registering Officer i.e. DLC, ALC within 30 days of change. Factory Inspector has nothing to do over here. please remember the number of workers (regulars+non regulars) should not exceed the license limit. in case the number exceeds, you need to file for amendment in factory license accordingly.
2. Canteen: regarding Canteen Mr. Anil Sharma has clearly elaborated. you need to provide canteen facility to the workers.
please refer Contract Labour (R&A) act, 1970 where in the number is 100 for providing canteen facility.
Thanks and regards,
From Germany, Frankfurt
1. For additional work by your contract staff, you have to pay overtime payment, as per Contract Labour act beyond 8 hrs per day. (If restricted to 180 staffs)
2. You can ask your contractor to increase no of staffs by providing work order.
After that you have to issue Form V for having Contract Labour Licesnce with contractor.
3. Canteen facility is mandatory according to Contract Labour Act, and you can reimbursement the canteen exp from Contractor.
From India, Delhi
korgaonkar k aDear Avish ji, Can you give relavant provisions to each of your point above?
From India, Mumbai
massociatesQ 1 .I am working in Pharma Company as Manager-HR &Admin. We have company staff of around 200 staff. Apart from that we are having contract labour. In contract, as a principle employer, we have got permission from IF for 180 staff. If the limit is exceeded some time for some additional work. In that case, is it necessary to increase the staff limit being provided by Contractor from IF. If do so, is there any violation for such additional staff.
Ans : Employees strength of your company should not exceed more than approved strength of Licence which is issue by IF, otherwise you have to get amended your factory licence before you increase employees strength.
Q 2.As per Factory Act, company should have canteen facility where the staff strength is more than 250. Since, our company staff strength is around 200, we are not having Canteen so far. The contract labour will be taken into account for the above parameter, then the staff strength is more than 250.
Ans :Anil Sharma ji explained clearly about the definition of worker , for providing canteen felicity you should consider contract employees also ex: 180 employees is your staff and 70 are from contractor than your factory will be covered under provision.
From India, Bangalore
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