Hello everyone,

Our management has decided to terminate or not to continue with all the contract labours under one contractor after the end of their agreement of contract. management has also given a 1 months notice to the contractor and contract labours before this termination. But in this situation all those contract labours demanding employment. thus they have started GHERAO and seeking employment under any contractor.keep in mind that its a gherao not a strike.contract labour is not under the definition of workman under ID ACT 1947.

Now as per the contract labour act 1970, we have done all the process legally. contract labours cannot be absorbed as permanent workmen in any case and we did not revoke or suspend the agreement before the end of the in that situation we don't need them but for that trouble they are forcing us to take them. so ultimately what they are demanding is illegal. now in that situation what should be done?


2.SHOULD WE GO FOR NEGOTIATION TO FIND OUT A MIDDLE WAY? in this case please mention what kind of middle way.

3.SHOULD WE INFORM THE LABOUR COMMISSIONER? in this case please write the procedure/steps in detail.



Sakshar Sarbajna


From India, Kolkata
Dear Sakshar,

At times, in industrial conflicts plurality pushes legality to the back seat, pity undermines procedures and commotion drives commonsense away. So, tactics alone can effectively handle such a chaotic situation. Better first ascertain the presence of the following factors: Whether the practice of switching contract labour among the existing contractors is in vogue in your company? If no, Whether the particular contractor who is likely to lose the contract is behind the agitation? If so,Is the non-extension of the particular contract necessitated by the completion or shortage of the particular contract work or due to any differences with the particular contractor? If yes, first initiate a one-to-one discussion with the contractor and convince him about the impossibility of the extension of the contract or iron out the differences and renew the contract further subject to the assurance of effective compliance of his contractual obligations in future. If the termination of the contract is real and genuine, seek for Police protection to avoid any untoward incidents and if possible immediately try to obtain an injunction from the local Civil Court against the agitators and inform the Conciliation Officer for the area forth with.

From India, Salem

Thanks a ton Mr. Umakanthan.M.
Actually our factory is in a tribal area and all local people work over there as a contract labour. now if we seek police protection or inform conciliation officer then there might be some chances of more violence. this can be lead to untoward incidents. we may face trouble in future also.
Now I am actually trying to settle that dispute by negotiation or any kind of middle way. because this will help me to avoid any future problem regarding contract labour in this factory. So Mr. Umakanthan.M., can you please suggest me some kind of middle way solutions which will settle this dispute..If it does not work properly then I will take all the steps you have mentioned.
I am Thankful for your kind suggestion.
From Sakshar

From India, Kolkata
I was wrong, contract labour can go for strike beacuse they are under the definition of workmen.
From India, Kolkata
Dear Sakshar,
I couldn't understand where you have said that "the management has also given a 1 months notice to the contractor and contract labours before this termination." I can understand your action in giving one months notice to the contractor since you have enter into an agreement with him but and I couldn't digest the idea of giving one month notice to contract labours, since you are not the immediate employer of these contract labours.
I appreciate the posting of Sh Umakanthan,who has rightly mentioned that tactics alone can effectively handle such a chaotic situation and has made certain relevent querries,which you need to answer if you want proper advice.Sh Umakanthan has been in the labour department and has vast experience in dealing with such situations.
BS Kalsi

From India, Mumbai
To my friend BS Kalsi,
we have given notice about termination of contract labours to the contractor only, not to the contract labours. now the contractor did not inform them that their contract has been finished. on the very next day we did not permit them to enter inside the factory. so thus resulted gherao by the contract labours.

From India, Kolkata
Dear Sakshar,

It's nothing new in such places and circumstances. Most of the companies big or small face such problems. I'm not sure what type of contract this has been. Was this a piece rate contract based on th quantum of work carried out by the contractor or for supply of labour on No.of shifts basis. In a 'piece rate' type of contracts the situation used to be not that serious whereas the contract for supply of labour for various routine work like, House keeping, loading & unloading, landscaping, canteen etc. it's natural labourers will agitate when contract comes to an end. To avert such problem many firms ensure most of these casual labourers are not called to duty on a regular basis but with breaks frequently. And many engage more than one contractor at a time for different type of work diff. contractors are assigned. I'm also not sure what has been the duration of Contract. Contracts with longer duration poses these kinds of problems. I as a person do not advocate these types of perennially temporary casuals for engaging them on regular work. Agitations will go on and on for permanency and courts will uphold their demands as well on the merits of they having been engaged continuously over years. Coming back to your problem on hand, if you cannot avoid engaging contract labour in one way or other you may consider for a pruned labour strength in critical areas thru' some other contractor for shorter periods say for 3 months. And by rotation you may engage one after the other making sure that agitating labourers could find place with one or the other contractor. This method is going on with many firms especially in PSUs and majors in Pvt.sector as well. In remote places even police with their local affiliations and political pressures also may not be of much help as they have take care of local interests also. Moreover corporates also will have social obligations to help the locals to make their livelihood especially in tribal areas. I hope they still not adopted to violent agitations. It's also obvious, Once they leave their traditionally & locally available life style like agriculture or forest dependent, it's very difficult to send them back to their traditional living denying their job & modern living given by their job. You have to think ahead with an eye on long term/future plans if your plant have to run for many more decades there.

From India, Bangalore
Nice to see the comments. There will be a good percentage of factories running on labours through contractor/s and occurrence of similiar situations are inevitable. While we take precautions for the future, how to come out of the problems on hand? Paying gratuity (15 days/year) for the number of years worked to the contractor labour is a legally accepted method?
From India, Mumbai
Dear friend

yes this is a quite routine situation now and then.... I need some clarifications...

1. Whether your contract is over or the undertaken work is complete?....

My question is suppose there is a harbour construction work ... Or any

factory construction.... Whether there is private prject or government

project you have taken some bit of the mega project.......


Why iam asking the above is.....

Asking for continuation of employment is not at all a sin..... By the working community.

Dont see this problem as law and order problem.....

Your contract is over but there is lot of work is there to do by the another contractor .

So workers are asking for continuous employment though contractor changed.

The question is who will relieve you from this responsibility with smooth skip.

That is why i asked who is your principal employer.. Is it government body or private.. My sincere and honest and the most applied practical solution... Is

transfer of your responsility of providing employment to another contractor who will succeed u.

See it is a wellknown fact... Rules are framed only to systamise our responsibilities towards wellbeing of humans.. Either you or others.. Live and let live...

No law goes beyond natural justice. If u r unable to provide employment in continuation try to lay the burden to another contractor succeding you through your principal employer . The pincipal employer can only solve your problem by laying condition to the newly acquired contractor to recruit the previous workers at a time or gradually in steps of stipulated times,

all the best sir. Never try to create abnormal law and order problem as this could be solved through conciliation joint meetings. And useful negotiations.. With honest people...

Yanam abscene is a lesson to both parties.. Management and working community.. So such cases never be repeated.. Take the help of police but solve the problem with your principal employer "s timely decision in negotiations.

In recent times several like situations are settled in this way only. Time will release all tensions...


From India, Nellore
And ... File an application before your near by labour commissioner central or state who is legally authorised persons to settle the problem with negotiations with both parties adding the principal employer also under i.d act.
Sir.. It will take one are two sittings ...

From India, Nellore

If you are knowledgeable about any other fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server