Leave Wages of Contract Labour. What is criteria of leave days calculation what rate should consider to pay leave wages if criteria is 240 day what about mid year joining. pls elaborate
From India, Ahmedabad
Dear Colleague,

As the Contractors are registered "establishment", generally the Shops and Establishments Act will apply to their establishment also.

Hence the Contractor has to extend the leave allowed under Shops Act for their employees. Kindly check the provisions of Shops Act for Leave as applicable for your state.

From India, Chennai
It depends on the Principal employer's industry type to which the contract labor are deployed by the contractor either with or without licence. In the case of EL/PL/Annual Leave with wages which alone has the accrual feature with reference to the no of actual days worked by the employee in a calendar year and the compulsory carry over feature to the succeeding year subject to certain ceiling, you have to follow the leave provisions of the establishment-specific Labor Law applicable to the establishment of the concerned Principal Employer. If it is a factory, then please refer to section 79 of the Factories Act; in case of it being an establishment under the particular State Shops and Establishments Act, then refer to the relevant leave provision contained therein.
From India, Salem
Dear Colleague,

Very well guided by our Colleague.

To add to the above writeup:

- For the employees who are in the parent establishment of the contractor as an employer ( like Contractor's office etc) the Leave provisions of Shops Act will apply

- In case of employees deputed by the contractor to a "Factory" of the client- Principal Employer, then the leave provisions of the Factories Act to be followed for them

- In case of employees deputed by the contractor to a " Shop and Establishment" of the client-Principal Employer, then the leave provision of the Shops Act to be followed for them

- Similar application to Contract workers deputed to Mines, Plantation etc to be followed as per my experience goes.

Generally it is said in practice that Contract Workers take the shape of the Principal employers' Organization like how the " Water takes the colour of Soil" where it falls.

From India, Chennai

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