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mankmr
Dear All,We are a small company located in a remote place. We are not able to engage contractors effectively.
Due to this, we are forced to hire Daily wage workers on daily basis.
Want to know :
1. What statutory obligations are involved?
2. How to fulfill the same?
Thanks in advance.


KK!HR
1530

Daily wage workers are alike regular workers in coverage for social welfare legislations like PF, ESI/EC, Labour Welfare Fund legislations etc. Once the daily wage worker completes 240 days of continuous service in any period of 12 months, their services cannot be abruptly terminated and the due process of law is to be completed. Looking to the long-term cost implication and presuming that these workers were involved in unskilled operations, it is suggested that you may consider Fixed Tenure Appointments, contract appointments, etc.
From India, Mumbai
nanu1953
334

Please fulfill all the liabilities under PF, ESI/EC, LWF etc. as mentioned above by Mr. KK!HR. Maintain one attendance cum wage register to maintain records daily wise and initiate all actions at the end of the month/ beginning next month for payment ( Minimum wages ) and other statutory compliance.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions



From India, New Delhi
Nagarkar Vinayak L
617

Dear colleague,
It is of utmost necessity when you raise any query, you need to state upfront whether yours is a factory or commercial establishment ,type of the business , State in which locatedand number of workers engaged. Because , several labour laws are
Central as well as State specific and their application criteria differs based on whether it is a factory or a commercial establishment, number of workers, and wages drawn etc.
Without this information, it is incorrect to advise on making some assumptions, as some colleagues have chosen to.
If you really want learned and useful advise, all posters must provide this information as a rule.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
mankmr
Vinayak Ji, Appreciate your inputs. Ours is a factory manufacturing chemical based products and located in Haryana. We are engaging atleast 8 Nos. of Daily wage workers paid as per the minimum wages of the state.

These unskilled workers are hired from the local market and usually do not carry any ID or Bank Account details.

I would request you to provide some useful inputs as per the facts provided above.

Regards,
Manoj Kumar
Head HR


Nagarkar Vinayak L
617

Dear colleague,

Since you are a factory employing only 8 workers, the FA does not apply. So also minimum wages, payment of wages etc . In this situation , you have no major labour law obligation. It starts when you employ 10 or more workers using power or 20 or more workers without using power and carrying on manufacturing activity.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
mankmr
Vinayak ji, Thank you very much for your valuable inputs. Further just out of curiosity, what happens if employees increase to 20 or more. Regards, Manoj Kumar Head HR

Nagarkar Vinayak L
617

Dear Colleague,

With strength of workers crossing 10/20 with power or without power respectively, several labour laws like, Factories Act, ESI, PF, Minimum Wages, payment of wages, Maternity Benefit( if woman worker is employed) to name
a few, will apply. You need to carry out your obligations under each applicable Act in terms of working conditions, wages, leave, returns and registers etc.

Regards,

Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai
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