dear all, i am working for a company where contract labour are more. can anybody let me know whether contract employee can claim for permanancy. can anybody provide me with proof of support please.
thanks & regards
h.rao

From India
Dear Mr. Rao

Contract labours can calim permanancy if

1) The contract is sham, bogus or camaflagued

Which means either a) the contractor is not holding valid license b) He is a mere paper arrangement but you directly pay to the labours of contractor c) you have direct supervision and control over contract labours

2) Contract labours can claim pay and benefits similar to the regular employees of yours

If

a) In the same company the set of regular employee is also engaged in same type and nature of job which s carried by contract labours

3) The contract can be abolished

If

a) The state/central contract labour advisory board finds that the jobs carried out by contract labours are of perennial nature and in \surrounding area and in similar industries the same kind of jobs are being done by regular employees the board can issue notification abolishing contracts in the entire industries of the region.

In such case the absorption of the existing contract labours is not automatic, however you will not be able to continue the jobs with contractors/contract labours.

I hope this will help

Regards

Shailesh Parikh

Vadodara, Gujarat

99 98 97 10 65

From India, Mumbai
Dear Yes,
Contract workers can ask to get Permanent if they are working continuously 240 days without any break than as per law can ask to be observe for permanent employee. so with the concern of Management and HR head proncipal employer should take care for the above point that each and every contract workers should get minimum 1 month break from their work.
Thanks,
Ranjana C


Hello Mr.Rao

The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act 1970. Sec.10 of the Act provides of abolition of contarct labour, if they are enged in a work of eprenniel nature or in a work which shall be done by regular workmen. However it is the approriate government that alone is competent to notify abolition of contract labour in an industry.But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authrities under the Industrial Disputes Act 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real empoyer i.e the principal employer.Thus there is no law entitling teh cntarct labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims, if teh contarct is sham.

Hope I have made myself understood.

B.Saikumar

HR & Labour law advisor


From India, Mumbai
[QUOTE=saiconsult;2089198]Hello Mr.Rao

The relevant law that deals with service conditions of contract labour is the Contract Labour (Regulation & Abolition) Act 1970. Sec.10 of the Act provides of abolition of contarct labour, if they are enged in a work of eprenniel nature or in a work which shall be done by regular workmen. However it is the approriate government that alone is competent to notify abolition of contract labour in an industry.But mere abolition of contract labour does not entitle the contract labour to claim permanency in the employment of the principal employer. They have to raise their claim before the authrities under the Industrial Disputes Act 1947. Even then, they can succeed only if the contract is sham or not genuine but only a paper arrangement to hide the real empoyer i.e the principal employer.Thus there is no law entitling teh cntarct labour to permanent employment in the principal employer's company. However, the principal employer stands a risk of inviting such claims, if teh contarct is sham.

Hope I have made myself understood.

B.Saikumar

Hi,

Mr Saikumar has correctly explained the legal provision. One has to be careful that the cloak of contract labour is not as a camouflage .In case it is established that the contract was sham, the employer runs the risk of making the worker permanent. The argument is, that the worker was never a contractor worker.

Cyril

From India, Nagpur
Hi,

In regard to engagement of contract labour, one has to keep in mind three specific conditions. (1) Safe zone- This means the contract worker is engaged on jobs which are not permanent and perennial in nature. The workers are engaged for specific jobs and on its completion, their contract terminated. (2) Danger zone: when workers are engaged on jobs which are permanent and perennial in nature, and the contractor workers are/or performing jobs which are ordinarily being done by permanent workman. (3) Critical zone: where jobs being done by contractor workers come under the prohibited category.

The worker/unions can raise an industrial dispute in case of (2) and (3) and claim that the contract was a sham one and that the workers were always the permanent workers of the establishment. The employer can also be penalised for engaging contractor workers on jobs coming under prohibited categories.

The nomenclature safe zone, danger zone and critical zone, is only for understanding of the nature of employment. These terminologies are not used in any statute book.

Cyril.

From India, Nagpur
Hi
The contract labour engagement within the operations is a crucial piece of evidence which will entitle a contract labour claim permanency within an organisation. The judicial judgements have taken different types of circumventing, direct and peripheral evidences, documents and other proofs to arrive at legal decisions as to whether a particular contract worker is deemed to be termed as permanent and accordingly cases are decided. But for the safe understanding, as many as precautions as possible to ensure compliance under Contract Labour Act, non discriminatory practices, etc., etc.
I have personally handled a very peculiar case to the finality in legal battles but cannot divulge the details herein.
Sanjay Jagtap
M.COM,DBM,LLB,ACS
ABHIRUTU CONSULTANTS
+919822394170

From India, Mumbai
Hi,
In the Factories Act, the requirement for provision of a canteen is ' when 250 workers are ordinarily employed " by the organisation.
It may be clarified whether "ordinarily employed" means the muster strength, or the average working strength. An organisation may have 270 workers on roll, but on an average only 220 workers are attending the work on daily basis. Is the employer obliged to provide a canteen in this case?
It may also be clarified whether the contractor workers employed by the organisation will also be included to decide the working strength. In this case there are 200 workers of principal employer and 70 workers are contractors workers?
Cyril

From India, Nagpur
Hi Ranjana,
I have gone through your reply.
Please let us know under which Act / Regulation that requires Contract employee to completed continuos 240 days without break and get permanent job in the company?
Since I have not got this kind of information till date, please upgrade our knowledge.
Regards,
Avinash K.

From India, Mumbai





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