A contractor is employing several employees in different sites of work in 2 or 3 states in full compliance with the provisions of CL(R&A) Act, concerned MW Act & all other relevant Acts. However, they offer permanent employment i.e. absorption in regular rolls of the Company; therefore, employment is not terminated with the closure of a contract – it is continued in the new / renewed contract in the same site or the employee is offered a job in another site (which may be in another state), instead of retrenching him or laying him off. For this, the contractor pays higher salaries – much higher than the prescribed minimum wages of the state keeping in view their skill & experience. It also grants an annual increment in parity with all senior or higher-ranking employees of the Company.

There is a fair annual performance assessment system based on which elevations/upgradations/promotions are granted to employees periodically.The Company ensures payment of gratuity for continuity in service, as per eligibility under Payment of Gratuity Act,1972. Apart from coverage of all employees within the ceiling as per the ESI Act, the Company ensures coverage of all other employees above the ceiling under an exclusive Group Health Insurance Scheme implemented by the Company on its own.

Keeping in view both the organizational interest as well as the interest of the employees for their continuity, security, growth & welfare in employment/job/service, the Company includes the provision of transfer of an employee from one unit to another, as per need. Only when a person accepts this term/condition of service, the Company provides employment to him. Therefore, it becomes legally a part of his contract for employment with the Company.

Inclusion of such a provision does not violate any labour law & is also not barred or restricted by any labour law, including the CL(R&A)Act or MW Act.

Kindly let us know, that under the above circumstances, whether this company/contractor has the right to transfer its employees from one unit/site to another.

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From India, Kolkata

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