JOB Contract Of Some Process Works - CiteHR
Industrial Relations And Labour Laws
Partner - Risk Management
Business Consultancy
Hr & Ir Professsional
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Dear All ,
With refer to subject , we are in manufacturing industry and having more than 2500 permanent and contractual workers . Now our management wants to reduce some manpower by putting some process work as JOB Contract to other party . So that Manpower could be reduce .
My question is that can we make JOB Contract of particular process / core activity works of factory ? . Is there having any legal implication on it ?
Pls put your valuable suggestion here on .
Thanks & Regards
Awdhesh Kumar

When you outsource some of the activities, especially the core activities in which a good number of employees are regularly employed, there would arise a labour dispute. It is okay if you outsource a new process in which no worker was earlier engaged and you do not know the results. Since you are outsourcing a process which was earlier carried out by your own workers you cannot have any defence. Therefore, I donít find any merit in your decision to outsource an existing process.

Good evening Madhu Sir ,
Thanks for your in puts . Actually we will use the surplus permanent workmen in some where else so that is not be problem for us . These things already been discussed and written consent we taken from union as well . Actually I am bit confused about JOB Contract / JOB Contract System of core activities , Can you put some light on this pls .
Awdhesh kumar

You are not allowed to contract out core activity.
The provision in the act is for out workers. That refers to work done by a contractor at a location other your factory. In such case they do not come under contract manufacturing.
That means you can take a partly made item, ship it out to a contract manufacturing site and get it done there. But you can not employ contract labour for a perineal and definitely not for a core function.

Dear Friend,
I suppose these are two separate activity.
1- Contracting Your work as job contract
2- Letting existing worker go
You have sign contract with existing worker for activity 2 you fulfill those conditions as per under factory act or worker contract with existing worker.
Contracting core or other process to third party why you should have legal binding to be done by existing man power only unless and untill you sign contract.
Yes, this is your moral responsibility i suppose for your faithful existing worker to give compensation or put them on other work if you find them or they ask for it any buffer period individual worker should feel satisfy by moral as well law conditions contract worker.
Law intricacies some time may leave you in confrontation situation among HR and union but human practice and law practice should give you better understanding to make decisions in your scenarios.
These are just suggestions I am not a Law practice.

Dear Mr.Awdhesh
As I understand,matter has already discussed with operating unions and written consent has also been taken with good motive that existing employees is to be deployed suitably.
Then, I can opine, you could also separate that part from your main process and can award that job to a contractor by completing the formalities of engaging the contractor.

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