Manager - Human Resource
Adoni Suguresh
Sr.executive (per & Adm)
Sr. Hr Team Member
Labour Law Consulting & Outsourcing
Korgaonkar K A
Statutory Complaince/labour & Employment
Hr Officer
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Our organisation is a factory (CPSU). Need guidance on followings,
1. We have given contract to an agency for the job of inspection of materials at stores. The contractor deputed employee as Inspector who's job will be to inspect materials and certify. Do they come under CL(R&A) Act?
2. In our factory the security part has been outsourced. The security agency pays thier guard the wages at par with minimum wages for watch and ward category and DGR structure. However nowhere it is mentioned about whether they (security guards) are entitled for paid leave. Please guide whether the security guards on contract are to be paid leave with wages?
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Dear Saptarshi,
Answer on your queries as given below...
1) applicability of contract labour act is based on no. of contract staffs, if no. of employee are 20 or more than that, then it will be applicable to you.
2) first, of all, security guard should be paid as per "Security Board wages" not by Minimum wages. secondly, they are also entitle for paid leave with wages.
Dear Saptarshi,
Since Mr. Tushar had been clarified that the CL act is applicable only if the number of contract labours are 20 or more and accordingly you have to approach to the concern authority for applying contract labour license and comply the compliance's under the act.
Secondly Security guards are comes under state act and in state act there is a provision to pay leave on the total wages earned by them during the financial year.
Thanks & Regards,
The security agency organization comes under the Shops & Commercial Est: Act of the respective States. The Guards are entitled for leaves ,weekly holiday,OT etc as per those Acts.
If the State Govt have fixed MW for Security staffs separately as a scheduled employment they shall be paid that MW, not the security board wages. If Security Services are not a scheduled employment in any state the MW fixed for Commercial establishment shall be paid to them subject to the conditions in that GO.
Dear DG,
As far as your query on contract of inspection work, you are requested to go head with the answer by Tushar ji.
My views on your second query i.e. on security guard are different.
You are from Delhi, I suppose. There is no Guard Board Act in Delhi. The leave rules for your security shall be as per the leave rules as applicable to your factory. You can not discriminate the security which is outsourced from leave rules of your factory.
Dear DG,
Further to my above reply, I would like to say that your job of inspection of materials in stores on contract may fall under the category of "contract for service". If it is so, provisions of CLRA are not applicable.
What is "contract of service" and "contract for service" is discussed earlier in one of your threads, if I am not wrong.
Dear Koregaonkarji, Please put the light on What is "contract of service" and "contract for service". Regards, Dilip Nandanwar
Dear Dilip ji,
Kindly go through the below given link in which one of the learned members of this forum Mr. B. Saikumar has nicely explained what is "contract of service" and "contract for service".
For this purpose I need to quote here how to know the Contract employee:; To know whether he is a contact Labour (CL) or not.

1) the workman a manual worker (Usk, Ssk, Sk, Hsk) or a technical worker or clerical in nature?

2)Employed in a Govt. Office/Dept. or a place where industry, trade, occupation, Business is carried on?

3)Employed by or through a contractor either for hire or reward?

4)Employer (Contractor) undertaken to provide a given result to an establishment or agree to supply CL .

5)Employed by the contractor exclusively in connection with the work of a particular establishment.

6)Master servant relationship between the employer (Contractor) and his workman (CL)

7)Does he accept this Master’s right to supervise & control him or his works at his sweet will

8) Is he an out worker?

9)Is he engaged by his employer for supplying of only goods or articles of an manufacture establishment?

10)Is the work of the establishment either intermittent or casual in nature (within 3 months)?

11)Is he engaged on Managerial or Adm. Or supervisory work?

12)Is he transfer from another office/project of the same contract/establishment?

13)Is his employer putting him to work for some other establishment at the same time?

14)Is he coming to the establishment as a part of his duty assigned to him be a contractor engaged by another establishment?

Please check the above points

Sitansu Sekhar Rath

Senior Manager

M/s Odisha Power Generation Crop. Ltd

Dear Mr.Saptharshi,
I hope that your query has been answered by Mr.Varghese Mathew . Please follow the same which is right way. Please note that the contract workers strength exceeds 20 or more on any working day, you must comply with the provisions of Contract Labour Act.
Thanks to Mr.Varghese Mathew.
Adoni Suguresh,
Sr.Executive (Pers, Admin & Ind.Rels)
Labour Laws Consultant
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