The ultimate objective of the CLRA Act,1970 is the abolition of the system of contract labor which is nothing but a disguised form of indirect labor in industrial employment. But as the practical difficulties of economy, flexibility of hire and fire in respect of certain activities which could be intermittent or incidental in nature, the adhoc engagement of specially skilled labor with the view to ease of performance coupled with timely delivery and the like render the over all abolition of contract labor practically impossible and make it imperative to regulate it statutorily and hence the regulatory aspect in the Act. But the emergence of market driven economy in the wake of LPG gradually tilted not only industrial employment but also the public employment towards contractualization despite the extension of almost all the benefits of regular employment to this indirect labor by the higher judiciary of the land.
In such a situation, I don't know how do you expect a positive and lawful answer to your query from a Human Resource Management Forum like Cite HR.
If your contract for service with the Company is a genuine one, just for the sake of break as expected by them you can rotate your contract labor among your contracts for service with other Companies. But, bear in mind that your service charges should be proportionate to all your commitments towards your labor.
16th February 2019 From India, Salem
Your Query:--"I am running my contract in factory (for) at least 4 (continuous) year now Company (Principal Employer..) asked me about Breaks for worker (Contract Labours) avoiding future dispute . Please let me know what can I do...".
Kritarth Team's Clarifications Offered:--
1. " No Break/s, and or Discontinuity of Contracl Labour employement shall serve your Purpose of Avoiding Claim for Permanent Employment in the "Jobs" against which the said CL were engaged by the Contractor, for and on behalf of the Principal Employer in latter's Establishment.
The Key Determinent shall be "whether" the CL were Engaged / Employed on "Permanent and Perennial Jobs (nature of Jobs).
2. Likewise. no aggregaation of intermittent, as and when they occured/ needed periods of Employment of CL in against Non-Permanent and Non-Perennial Jobs shall confer upon the CL any Entitlement to Permanency in against the same Jobs.
This Legal Position has often been Repeated/re-iterayed by theSupreme Court of India in their Judgements/Oreders dating as far back as 1957 (Dhrangadhra Chemical Works Ltd. v. State of Saurashtra) to Air India case as Kritarth Team readily recalls at this point of time.
The Twin Litmus Tests enunciated are.. "i) Whether the Principal Employer pays/Disburses the Wages /Salary instead of the Contractor; and;
(ii) Whether the Principal Employer "controls and supervises" the work Performance of the CL.
Withour scruple when Few Principal Employers engaged Workforce thru Contractors to work in against Permanent & Perennial Nature of Work/Jobs, in somewhat clandestine manner , camouflaging the same as Seasonal or Intermitent, our Honble Supreme Court termed such blatent Acts as Sham , Subterfuge.
The Point to Ponder is remains : How Much Do we Save ??? By such or similar Unlawful Actions. The Stand is Our Own Team's Stand which we Maintain While We Advice our Esteemed Service-User Corporates Employers.
We Understand that "Anything Worth Doing Is, Worth Doing WELL".
17 Feb 2019,
PAN India Service Provider
17th February 2019 From India, Delhi