Dear All seniors ,
As under the Contract Act no contractual employee shall be employed in the core activity (Operations/production), but if the contracting license states to employ the employees in operations, can the contractual employee be employed in the operation?
Usually loading unloading is written in the contract license.

From India, Rudarpur
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The Contract Labour cannot be deployed in trades prohibited by the State Govt. as per the CLRA Act 1970 (except in AP as I understand) . The Act doesn't distinguish between core and non-core operations. Outsourcing core operations is not a good idea for strategic management.
From India, Mumbai

Dear Gautam,

The CLRAAct,1970 does not define ' core activity ' but sec.10 of the Act empowers the appropriate Governments to declare certain activities/operations as prohibited ones after following the procedure laid down therein. That apart, by its very nature and multitudinary application, core activity becomes industry-specific rather than function-specific. Therefore, you can engage contract labor under the CLRAA,1970 in any activity/operation which is not prohibited u/s 10.

However, this interpretive difficulty is removed to some extent by the Occupational Safety, Health and Working Conditions Code, 2020 by defining the term ' Core activity of an establishment ' u/s 2 (p) as " any activity for which the establishment is set up and includes any activity which is essential or necessary to such activity ". At the same time, the first proviso of the definition clause excludes certain activities as not to be considered as essential or necessary activity, if the establishment is not set up for such activity.

At the same time, it would not be out of place to mention that the prohibition of employment of contract labor in core activities of any establishment u/s 57(1) of the Code gets somewhat diluted by the sub-clauses (a), (b) and (c) of its following rider clause.

From India, Salem

If you are taking these decisions now, please read the new labour laws that provide that the contract labour must be paid same wages as regular employees of the factory.

You need to change your process, strategy and management controls to ensure you do not fall fowl of the regulations and end up paying high back wages.

From India, Mumbai

Dear Gautam,
It is not an issue but an issue as per some judgments(land mark) passed by the Apex Court in favors of workmen under the Contractor CL(R&A) Act. Similarly, in some cases the Apex court has favoured the employer though may be same.

There should no contractual employee shall be employed in the core activity / perineal nature of (Operations/production), if there at all existing workmen of permanent nature.

The contracting license states to employ the employees in operations if that work has not been made abolition by the state govt (Loading unloading).
Everything is fair enough if managed properly. Employer prefers engagement of contract workmen for the exploitation because they count financial difference between Permanent & Contract.

From India, Mumbai

Dear Sirs,
The The CLRA (AP Amendment ) 2003 gave broad classification of Core and Non core activities. It provided a facilitating feature for engaging contract workers even in Core areas. This may be taken as a guideline and act upon. Please check with relevant provisions in concerned state.

From India, Hyderabad

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