Textile business is something unique,especially in TN. There both organised & unorganised, piece rate & time rate work is going on for ages. I hope you know the nature better. Such conditions are prevailing in Beedi industry as well. Thousands of Powerlooms are being operated in around the residences of those involved. Some obtain spun yarn from owners and supply finished cloth against piece rates. Though such operations are not in the nature of 'industry' or 'factory' or 'shops', sure, there some manufacturing activities are going on. In this scenario there exists hiring workers for short periods without proper legal pay packages. They are settled now and then as their frequency of mobility usually for shortest durations. Some are settled month to month or even piece to piece. In these conditions prescribing an acceptable common model of remuneration would always be arbitrary. Arguably, I would say the CTC concept now common in IT/ITES sector should have roots in this industry. No one could think of either PF or Gratuity or Leave encashment or even bonus. All these payouts, much would depend on the bargaining capacity and skills of the employee concerned rather than legal parameters as the settlement of benefits are mutually agreed on one to one basis depending on skill and workload turned out by individuals. As you said there cannot be legal angle as the parameters governing the conditions are limited by no.of employees and their tenure. And if you say they have been employed for the whole year and they are to be settled year on year basis, then 15days wages should be good enough so far as bonus & gratuity aspects are considered. But w.r.t. leave it's anybody's guess. And if you are willing to pay @ 15 days salary for gratuity, you'll be doing great thing, for even < 5 yrs service, we see MNCs and firms in organised sector bunk. All said and done, if you are toeing the practice followed in around your place/in your sector that could solve your predicament.
5th November 2018 From India, Bangalore
Thanks for your insights. As you said, textile business is mostly an unorganized sector here (except for major factories that employ thousands of workers). So we have no choice but to follow the local practices irrespective of the legality surrounding it. (Because it has become a norm, if we don't follow it, we would end up not having enough workforce). I am not sure why this sector has been allowed to work unorganized still. That is totally a different a different area of discussion I feel. Anyways in this case, can i draft an employee contract (like 1 year contract) and settle the dues every year and sign with them a new contract every year. Though we have less than 20 staffs, I am trying to make salary, wages, settlements etc as organized as possible.
9th November 2018 From India, Coimbatore
Fine, You are the better judge on the given situation as we have no means to face the compulsions what you are facing, the ground reality. Pl.read the attached material on the history of Bonus in India. Textile business, especially cotton based, as you know centered around families and employing family members. In this scenario not much of investment is needed and what the skills and equipment passed on from ages are getting deployed with minimum modifications in the process. That's the reason mainly this sector remains within the four walls of families. Having known about fate of those days' big giants who were fully cotton based industry like Binny mills, B & C mills, numerous mills which were running during 50-70s later absorbed in NTC all over the country and became sick and closed I am aware of their difficulties. I am not competent to prescribe any slabs or rates due to inherent problems & uniqueness and any attempt to impose the provisions of various acts, I afraid only cripple the industry which serves bread winner to lakhs of people male & female alike living in rural & semi-urban areas. All the best friend.
9th November 2018 From India, Bangalore