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?
16th July 2013 From India, Madras
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.
16th July 2013 From India, Mumbai
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).
17th July 2013 From India, Pune
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.
17th July 2013 From India, Tiruchchirappalli
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,
17th July 2013 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.
18th July 2013 From India, Delhi
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.
19th July 2013 From India, Bangalore
1.Engagement of Contrcat labour over and above the strength approved by the Factory Inspectorate is always a risk. Suppose if there is any accident we will be in trouble. Hence in order to avoid such things it is better to amend the registration/license.
2.The Form-1 register under Conferment of Permanent Status Act is the ready reconer for the Inspectors for the calculation of number of permanent employees on the rolls of the company. Moreover, even though the canteen is mandatory if the contract employees are above 100, now a days the provision of canteen facility has become very common.
If any more matter is be discussed pl revert back.
20th July 2013 From India, Tiruchchirappalli
1. As per the factories Act,1947 every persons who is working inside the factory premises knowingly or unknowingly comes in to count.
You have staff 200
Cont labour 180
what is permissible limit as per the Factories Act in your Company, if it is less than the actual strength you should amend your license up to actual strength.
See your Form-4 which was issued by the factories department. if it is permissible we can ask contract to increase manpower .
Section 46 (Canteen) of the principal Act the following section shall be subtituted , namely
"46 ( l ) in every factory wherein two hundred or more workers are ordinary employed. There shall be provided and maintained a canteen by the occupier for the use to the workers"
So, Canteen is mandatory in your case
V K Rao
21st July 2013 From India, Guntur
First you find out that your management is in the openion to follow the IF and FA obligations or not. If yes , fulfil the obligations because the related statures are very strict. If the man power touched 250 Nos, you have to comply with the labour depart to obtain the licence for the increased strength.
Manager (HR & Legal)
TKECON Pvt. Ltd
22nd July 2013 From India, Guwahati
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22nd July 2013 From India, Secunderabad
In normal circumstances I would have ignore your post. But, because of your private message to me I could not ignore it. I read your post again and again to understand it. I thing, I should abreast myself and then only I may be in position to understand you.
25th July 2013 From India, Mumbai