Dear HRs,

I hope everyone is having a great day!

I just want to know the feedback/suggestions on the captioned subject.

As per my understanding, most of the agreements between a principal employer and a contract agency will be such that if the principal employer is paying some X amount (which includes employers' and employees' contributions towards PF and ESIC) as wages, the same should be paid to the employee except the service charges. But how many of us (HRs) are looking at this and helping contract employees to get their salaries as actuals?

Apart from the above point, I just want to know how many of the HRs are looking at contract employees, whether they are getting salaries on time, whether they are benefiting from PF, ESIC, and other statutory benefits.

I have seen most of the HRs checking the bills, signing off, and sending them to accounts for payment. Kindly give your inputs on the above points so that I can try to understand how well or how deeply we are taking care of our contract employees as same as our on-roll employees.

Thanks and regards,

Harish Kumar
HR

From India, Hyderabad
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HR as a function is not the final word in any organization. It is not due to ignorance of law (Contract Labour Act) by the HR that the HR is permitting engagement of contract labour without following the law, but they are forced to follow what the top management wants to enforce. I don't think that even the HRs in big, rather multicore companies in India, who engage contract labour even in areas where such engagement is totally prohibited, are ignorant of the provisions of the law, but they are following or implementing the management's policy of easy hiring or doing things in a 'better way' rather than unnecessarily wasting time negotiating with trade unions and so on. This is not restricted to manufacturing but in IT, hospitality, and other service industries too, we can see this kind of engagement.

Once the engagement itself is illegal, why should we delve deep into whether these contract labourers are paid minimum wages or whether ESI/PF contributions in respect of them are paid on time? Here also the HR will keep silent. His duty will be confined to verifying whether the ESI/PF remittance challans, statement of wages paid, etc., are attached to the contractor's bill or not.

Therefore, what is required is to empower the management and regulate the engagement of contract labour in the way it should be. And this is not possible unless the management, which comprises the Finance and Marketing team in the majority and HR as the minority, changes its attitude. Unless HR is given an entity separate from all, with adequate powers to implement laws, he cannot do anything. In many companies, HR is being underutilized. In such a scenario, HR will function like a machine only. It is not the fault of HR but the fault of our system.

Madhu.T.K

From India, Kannur
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