Industrial Relations And Labour Laws

Dear HRs,

I hope very one is having great day !!!!

I just wanna know the feedback/Suggestion on captioned subject.

As per my understanding most of the agreements between a principal employer & contract agency will be like if Principal employer is paying some X (this X includes Employers & Employees contributions towards the PF & ESIC) amount as wages the same should be paid to 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 above point,i just want to know how many of the HRs are looking at contract employees weather they are getting salaries on time,weather they getting benefited from PF,ESIC and other statutory benefits.

I have seen most of the HRs checking the bills and signing off & sending it accounts for payment.kindly give your inputs on above points so that i will try to understand how good or how deeply we are taking care about out contract employees as same as our on rolls employees.

Thanks & regards

Harish Kumar


From India, Hyderabad
HR as a function is not the final word in any organisation. 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 the even the HRs in big, rather multi cores 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 the things in a 'better way' rather than unnecessarily wasting time in negotiating with trade unions and so on. This is not restricted to manufacturing but in ITs, hospitality and other service industries too we can see this kind of engagement.

Once the engagement itself is illegal, why should we go in deep about whether these contract labour are paid minimum wages or whether ESI/PF contributions in respect of them are paid in time? Here also the HR will keep silent. His duty will be confined to verifying whether the ESI/PF remittance chalans, 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 of Finance and Marketing team in majority and HR as minority changes its attitude. Unless HR is given an entity separate from all,, with adequate powers to implement laws, he can not do anything. In many companies HR is being under utilised. In such a scenario, HR will function like a machine only. It is not the fault of HR but the fault of our system.


From India, Kannur
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