How long we can deploy contract labor? Some companies give breaks after completion of six months What rights they are getting after completing six months?
From India, Mumbai
Doctor Siva Global Hr

Dear Brother,
Contract Labour is a Sensitive Subject and there are several Judgments and Rules Pronounced by different Courts of the Country at different times. It is so complex but at the same time so simple to follow if we have good understanding.

1. The engagement of Contract Labour as on today is governed by Provisions of Contract Labour Regulation and Abolition Act and Rules (CLRA) combined with different judgements pronounced by Courts.
2. The basic requirement is that the work or job in which you engage contract Labour should not be of Perennial in Nature or should not have been abolished by notification by the Appropriate Government. Please have a check on what are the jobs abolished in your respective Industry
3. Get your establishment registered under the CLRA and obtain Registration Certificate
4. Engage Contract Workers only through Licensed Contactors who obtained specific license for your factory or establishment under CLRA. More so, ensure that the contractors cover their workers under their own PF and ESI Establishment Code number
5. Fulfil the conditions stipulated under the CLRA License
6. Comply with relevant Labour Laws applicable for Contract Workers.
7. Have robust work order or contract established between Principal Employer and the Contractor
8. Ensure that the Contract is not Sham in nature and there is a fair employment terms, wages and other benefits to the Contract Workers
9. If these are followed it is by and large safer system
10. The main purpose why some companies give break is to to avoid Gratuity liability and Continuity of Service for the said workers. Other than that no other reason is there. When same set of workers engaged for 5 years or more they become eligible for Gratuity also which please bear in mind
All the Best
Tamil Nadu

From India, Chennai

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